Smallcap Mutual Funds: Since making peaks in September, most of the trading sessions have seen pressure on the stock market. Both Sensex and Nifty index have weakened more than 10 percent of their peaks. This year also the market continues to decline. However, the maximum effect of selling is seen in the smallcap segment. The BSE Smallcap index has weakened 11 percent in the last 6 months. This year too, the index is only about 11 percent decline. Currently, the effect of selling in smallcap shares is also showing SIP returns in smallcap mutual funds.
Mutual Fund Star: HDFC Mutual Fund’s No. 1 Scheme, SIP of Rs 3000 made 6 crores, 333 times returns on Lamp Sam
Most smallcap index broken
Talking about the equity market, the BSE Smallcap index has weakened about 11 percent so far this year. At the same time, there has been a similar decline in it in 6 months. Which is the highest compared to other major index. So far this year, the Sensex has fallen 1.65 per cent and Nifty 1.50 per cent. The midcap index has weakened 8 per cent this year, while the BSE 500 index has fallen 4.5 per cent. The bank’s Nifty has weakened 3.17 percent and the Nifty IT index has weakened by about 3 percent.
Highest Return: LIC Mutual Fund’s top 5 equity scheme, 7 times money increased on lump in 12 years, 13-19% annual returns to those who do SIP
Smallcap Fund: Bad Return
Smallcap fund’s short -term returns have been affected due to a decline in smallcap stock. There are more than 25 smallcap funds in the last 6 months, which has fallen by more than 10 percent. 10 to 19 percent negative returns are visible in them.
Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF: -19.73%
Quant Small Cap Fund: -14.02%
ABSL Small Cap Fund: -13.65%
Baroda BNP Paribas Small Cap Fund: -13.30%
Franklin India Smaller Companies Fund: -13.06%
DSP Nifty Smallcap250 Quality 50 Index: -12.94%
Mahindra Manulife Small Cap Fund: -12.89%
Nippon India Small Cap Fund: -12.73%
Motilal Oswal Nifty Smallcap 250 ETF: -12.63%
ICICI PRU NIFTY Smallcap 250 Index: -12.59%
SBI Nifty Smallcap 250 Index: -12.57%
HDFC Nifty Smallcap 250 Index: -12.56%
Nippon india nifty smallcap 250 index: -12.51%
Motilal oswal nifty smallcap 250 index: -12.51%
HDFC Nifty Smallcap 250 ETF: -12.46%
Edelweiss nifty smallcap 250 index: -12.46%
HSBC Small Cap Fund: -11.52%
SBI Small Cap Fund: -11.42%
Kotak nifty smallcap 50 index: -11.02%
ABSL NIFTY Smallcap 50 Index: -11.02%
Axis nifty smallcap 50 index: -11.01%
Canara Robeco Small Cap Fund: -10.86%
ICICI PRU Smallcap Fund: -10.55%
Bank of India Small Cap Fund: -10.15%
Kotak Small Cap Fund: -10%
Union Small Cap Fund: -10%
(Source: Value Research)
Return: HDFC Mutual Fund scheme made SIP of Rs 2500 5 crores, 185 times returns on lump even, stamped 30 years completed
What is the reason for increasing instability in smallcap
AK Nigam, director of BPN Fincap, says that the smallcap segment had seen heavy inflows continuously last year. At the same time, the rally of the market which has lasted till September, the smallcap stocks increased a lot. The smallcap index saw a lot of strength than the other index. At the same time, the market is volatile, so in such a situation, the maximum instability is being seen in the smallcap segment. It is usually also happens that there is more volatility in the smallcap during the market fall.
Small Cap Fund: Who should invest
Financial advisors always recommend that investors who are willing to take high risk for high returns can invest in small cap funds. That is to say that investors who have the ability to take more risk of the market can consider investing in small cap category. However, their investment in smallecap funds should be at least 5 years. Long -term investment is reduced by short -term volatility.
Small-cap mutual funds primarily invest in shares of companies with market capitalization less than Rs 5,000 crore. It is a sub-category of equity mutual funds and their performance is affected by market fluctuations. Small cap companies show more volatility during the market fall. However, the best small-cap mutual funds have the ability to give high returns in the long term.
SIP King: This mutual fund scheme made 1 lakh one time investment of 4 crores, King proved in SIP
SIP: How was SIP return in 5 years
In the last 5 years, if you see the SIP returns of smallecap funds, it has been high. More than 15 funds have got 25 percent or more returns annually, some of which we have given names.
Quant Small Cap Fund: 35%
Nippon India Small Cap Fund: 30.64%
Invesco India Smallcap Fund: 29%
Tata Small Cap Fund: 28%
HSBC Small Cap Fund: 28%
Edelweiss Small Cap Fund: 27.76%
Franklin India Smaller Companies: 27.61%
LIC Mf Small Cap Fund: 27.58%
Bank of India Small Cap Fund: 27%
HDFC Small Cap Fund: 26.76%
Canara Robeco Small Cap Fund: 25.67%
ICICI PRU Smallcap Fund: 25.35%
(Source: Value Research)
(Note: Whether or not the old return in any equity fund will continue further, it is not guaranteed. It may or may not remain in future. There are risks in the market, so consult experts before investment.)