SIP in Oldest Small Cap Fund : Aggressive investors who are willing to take risk for higher returns invest in small cap funds. Small-cap mutual funds mainly invest in shares of small-cap companies with market capitalization of less than Rs 5,000 crore. Small cap companies show more volatility during market downturns. That means these companies are more volatile in terms of market volatility than midcap and largecap companies. In such a situation, if you are choosing a smallcap fund then you must check its rating. You can invest in schemes with 5 star or 4 star rating after consulting your financial advisor.
SIP Star: Amazing scheme with 4 star rating, SIP of Rs 10,000 turned into Rs 1 crore, money increased 12 times on one time investment
Here we have given information about one such small cap mutual fund with 5 star rating, which has given competition to the big schemes of other categories in terms of returns. We are talking about Quant Smallcap Fund, which is included in the oldest smallcap scheme. It has been 28 years since this fund was started and during this time it has proved to be a wealth creator. During this period, the money of those doing monthly SIP of Rs 10 thousand increased to about Rs 5 crore. At the same time, the money of those who made lump sum investments has increased 27 times.
Quant Small Cap Fund : SIP Performance
Annualized return of SIP in 28 years: 15.73%
Monthly SIP amount: Rs 10,000
Total investment in 28 years: Rs 33,60,000
Value of SIP in 28 years: Rs 4,86,01,629
1 year SIP return: 25.54%
3 year SIP return: 36.13%
5 year SIP return: 44.33%
SIP Return in Oldest Fund: Tata Group’s oldest scheme did wonders in SIP, daily savings of Rs 100 turned into Rs 2.67 crore
Quant Small Cap Fund: Lump Sum Performance
1 year return: 51.79%
Value of investment of Rs 1 lakh in 1 year: Rs 1,51,790
3 year return: 27.68% per annum
Value of investment of Rs 1 lakh in 3 years: Rs 2,08,150
5 year return: 46.09% per annum
Value of investment of Rs 1 lakh in 5 years: Rs 6,65,470
Returns since launch: 12.49% per annum
Value of investment of Rs 1 lakh after launch: Rs 27,02,200
(Note: Inception date, October 29, 1996)
AUM and expense ratio of the fund
Assets under management: Rs 26,331 crore (October 31, 2024)
Expense Ratio: 1.60% (October 31, 2024)
Benchmark: NIFTY Smallcap 250 TRI
Riskometer: Very High
Minimum lump sum investment: Rs 5000
Minimum SIP investment: Rs 1000
Most Profitable IPO: 7 highest earning IPOs this year, investors got 110 to 254% returns, these 5 suffered the highest loss.
Top sectors for investment
Energy & Utilities
Healthcare
Consumer Discretionary
Materials
Technology
Top Holdings
RIL
Jio Financial
Aegis Logistics
Aditya Birla Fashion
Bikaji Foods
HFCL
Poly Medicure
Sun Tv Network
Adani Enterprises
Adani Power
investment strategy
Quant Smallcap Fund invests at least 65 percent of its funds in small cap companies. However, this maximum can also be 100 percent. A minimum of zero percent and a maximum of 35 percent can be invested in other equity and related securities. Minimum zero percent and maximum 35 percent investment can also be made in debt and money market securities. Whereas minimum zero percent and maximum 10 percent investment can be made in REITs & InvITs units.
Investment Strategy: How to invest in equity mutual funds, fixed income and gold? This is the right way to earn profit in the current environment
Who should invest?
Small-cap stocks give investors an edge over institutional investors. This is because institutional investors prefer to buy large-cap stocks due to their preference for stability. Whereas aggressive investors who are ready to take risk for higher returns invest in small cap funds. This means that investors who have the ability to take more market risk can consider investing in the small cap category. When an investor is building a stock portfolio for himself, it is important to have a benchmark against which he can compare returns.
(Note: It is not guaranteed whether the past returns in any equity fund will continue or not. This may or may not continue in the future. There are risks in the market, so seek expert advice before investing.)
