Nippon India Small Cap Fund : SIP and Lumpsum Return : The country’s largest small cap fund in terms of assets under management (AUM) has won the trust of investors by performing brilliantly in terms of returns as well. We are talking about Nippon India Small Cap Fund, which has left all the other funds in its category behind in terms of average annual return over 10 years. This small cap fund with assets under management (AUM) of more than Rs 59 thousand crore is included in the top 4 schemes of the category in terms of 5-year and 3-year returns. You can also estimate the returns of this scheme from the fact that it has doubled the lumpsum investment in 3 years and four and a half times in 5 years. This scheme has also more than doubled the money of those investing through Systematic Investment Plan (SIP) in 5 years.
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Small cap scheme giving highest returns
Nippon India Small Cap Fund, an open-ended equity scheme investing primarily in small cap stocks, has outperformed all other funds in its category in 10-year average returns. Its Compound Annual Growth Rate (CAGR) for 10 years is 21.79%, which is the highest in the category. This fund is at third position with 33.12% average annual return in 5 years and fourth position with 23.51% average annual return in 3 years. This performance shows that the fund has provided excellent opportunities for wealth creation to investors in the long term.
Nippon India Small Cap Fund (Direct Plan)
- 10 Year Return (CAGR): 21.79% (Category Rank 1)
- 5 Year Return (CAGR): 33.12% (Category Rank 3)
- 3 Year Return (CAGR): 23.51% (Category Rank 4)
Also read: Best SIP Return: Top 5 equity schemes of SBI Mutual Fund gave up to 35% return on SIP in 3 years, how much money was made from monthly investment of Rs 5000?
How much return did you get on lump sum investment?
Nippon India Small Cap Fund has tremendously increased the wealth of lump sum investors. If someone had invested Rs 1 lakh in this fund 3 years ago, his current fund value would have been more than Rs 2 lakh. Similarly, in 5 years this investment would have reached close to Rs 4.5 lakh. At the same time, if someone had invested Rs 1 lakh in the beginning of the direct plan of this fund, then its value would have been around Rs 17.88 lakh.
Fund value of lump sum investment of Rs 1 lakh
- In 3 years: Rs 2,00,030
- In 5 years: Rs 4,50,680
- From inception (January 1, 2013, Direct Plan): Rs 17,88,240 (CAGR 27.15%)
- From inception (16 September 2010, Regular Plan): Rs 17,46,150 (CAGR 22.14%)
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Got tremendous returns on SIP also
Nippon India Small Cap Fund has also given good profits to investors through Systematic Investment Plan (SIP). If someone had done a SIP of Rs 10,000 every month for 10 years, his fund value would have been Rs 49.33 lakh. Whereas his total investment would have been only Rs 12 lakh. Similarly, on SIP for 5 years, the total investment of Rs 6 lakh would have increased to Rs 14.75 lakh and on SIP of 3 years, the total investment of Rs 3.6 lakh would have increased to Rs 5.75 lakh.
Value of Monthly SIP of Rs 10 thousand (Direct Plan)
- In 10 years: Rs 49,33,782 (total investment Rs 12 lakh)
- In 5 years: Rs 14,75,414 (total investment Rs 6 lakh)
- In 3 years: Rs 5,75,643 (total investment Rs 3.6 lakh)
Also read: Multi Cap vs Flexi Cap Return: How much return did the top 5 multi cap and flexi cap funds give? What is the difference between the two and the pros and cons of investment?
Special features of the fund
- Scheme Start Date: 16 September 2010 (Regular Scheme), 1 January 2013 (Direct Scheme)
- Fund Manager: Samir Rachh
- Asset Under Management (AUM): Rs 59,635.91 crore
- Exit Load: 1% if redeemed or switched before completion of 1 year of allotment. Nothing after that.
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For which investors is this fund suitable?
This fund mainly invests in small cap companies, which have the potential to grow rapidly in the market. But small cap funds are generally considered a very risky investment. This fund has also been placed in the Very High Risk category on the Riskometer. Therefore, only those people should consider investing in it, who have the ability to take big risk for high returns. Also, it should be kept in mind that the share of small cap funds in the entire equity portfolio should not be more than 10-15 percent. If investment in any equity fund is done for long term and through SIP, then it is better in terms of risk management.
(Disclaimer: The purpose of this article is only to provide information, not to give investment advice. The past returns of a mutual fund do not guarantee that it will continue in the future. Decisions related to investment should be taken only after consulting a SEBI approved investment advisor.)
