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Choosing the right small cap mutual fund isn’t as hectic as you think.
With our expert tips, you’ll soon get to know the insider tips for turning your investment into a profit bucket. Calculating the expectancy-value with an SIP calculator online is the first step.
These tips are all very practical, and we’ve got the best results by working with these tips. Let’s know the best small cap funds for investment!
A no-nonsense guide to investing in top small cap mutual funds
Everyone wants to invest without risk, but small cap funds are too risky. You can’t cut off the risk fund, because the return is very high in these funds. What you can do is read our tips and invest in the right funds.
For your benefit, we’ve got you a complete guide about best funds and calculating using the SIP calculator online.
Let’s first know why small cap funds are trending more than any shares now.
Why are small cap funds the most profitable ones yet?
It’s a fact that many investors want a quick high return on their investment, and that too in fewer years. While economic fluctuations can be a downturn and often hurt the return value, small cap funds are the most beneficial ones still.
The only downside to these funds is high risk, and that too can be optimised with the right guidance which we are yet to give to you.
Small cap mutual funds are still more profitable than all other mutual funds because:
- During an economic downturn such as a recessionary period, these funds play safer than larger capital investments.
- Even if these are small caps, they come from established brands like HSBC. Investing in them has a larger potential.
- High returns are there in small cap funds, which you won’t get anywhere.
Know these top small cap funds
Let’s have a close look at the best-performing small cap funds.
- Canara Robeco small cap fund
We found the returns of this small cap fund quite promising, which means if you’re spending Rs. 5000 per month, you’ll be getting Rs. 3,05,502 after 3 years. That means you’re earning a profit of 69.72% on this share.
Return rate (3 years): 32.29%
Minimum SIP Investment: Rs. 5000
Risk rating: Very high
Exit load: No exit load after 1 year of switching out
Ratings by major agencies: 5/5
Brands that invested in this fund: Bharat Electron, KEI Industries, Multi Comm. Exchange
- Nippon India small cap
Nippon India consists of an attractive return rate. Let’s suppose you’re investing Rs. 5000 every month for 3 years, so you’ll get a total return of Rs. 3,29,285. Which means, you get a profit margin of 82.94%.
Return rate (3 years): 36.59%
Minimum SIP Investment: Rs. 5000
Risk rating: Very high
Exit load: No exit load after 1 year, 1% within a year
Ratings by major agencies: 4/5
Brands that invested in this fund: TREPS, BHEL, State Bank of India, HDFC Bank
- Axis small cap
Axis Small cap has been performing quite well with no drop in value for the past 1 year. We noticed a 40.56% return on this share, so it can be an attractive opportunity for you.
Return value (3 years): 24.73%
Minimum SIP Investment: Rs. 100
Risk rating: Very high
Exit load: Axis small cap mutual fund has a different exit load, after a year 1% over 10% of investments
Brands that invested in this fund: Bluestar Limited, Ahluwalia Contracts, Birlasoft Limited
- Tata Small Cap Fund
Tata small cap fund brought out an attractive opportunity for investors if you’re planning to invest Rs. 5000 per month, you’ll get Rs. 2,71,263 at an attractive rate of return of 50.70% after 3 years.
Return value (3 years): 30.94%
Minimum SIP Investment: Rs. 100
Risk rating: Very high
Exit load: 1% after 1 year, no charges if withdrawn before 1 year and investment value is 12% of original investment plan
Ratings by major agencies: 3/5
Brands that invested in this fund: Quess Corporation, IDFC, Radico Khaitan, BASF India
- ICICI Prudential
Return value (3 years): 31.18%
Minimum SIP Investment: Rs. 100
Risk rating: Very high
Exit load: 1% within 1 year, after that NIL
Ratings by major agencies: 3.5/5
Brands that invested in this fund: TREPS, Cyient, Grindwell Norton, Cyient
- SBI small cap
SBI small cap mutual fund although has a higher risk, it still has shown consistent performance over the years.
Return value (3 years): 22.95%
Minimum SIP Investment: Rs. 500
Risk rating: Very high
Exit load: NIL after 1 year, 1% if within 1 year
Brands that invested in this fund: Kalpataru Projects International Ltd. Finolex Industries Ltd. Blue Star
Step-by-step guide to calculating returns on the SIP Calculator
All of these small cap funds have their own merits and demerits, but it’s challenging to figure out which fund will be most suitable for you in 3 years.
Here comes the role of a SIP calculator online, which will help you to understand the exact returns value after 3 years.
You’ll get the direct investment value after 3 years of investment, and get to know the exact value in 3 years. No need to use a complex formula, just follow our step-by-step guide.
- Go to a trusted SIP calculator site
- Put the SIP minimum amount that you’re ready to invest in the online calculator
- Select the period for which you want to invest
- Get the expected returns
Conclusion
With these best small cap funds, we are more than sure that you’ll be able to figure out the right share to invest in.
Last but not least, using an SIP calculator online will get you the exact amount that you’ll get after a year, so always use it to know your returns.
