Based On 10 Year SIP, This Top-Rated Small-Cap Fund Has Given Close To 220% Returns

Small-cap mutual funds are equity funds that invest a significant portion of their investment corpus in small-cap companies' equity or equity-related instruments. According to SEBI guidelines, small-cap schemes must invest at least 80% of their total assets in small-cap companies. The investors' primary goal is to generate long-term capital appreciation by investing in small-cap mutual funds.

Here, this particular small-cap mutual fund scheme' Direct Plan-Growth Option has given 219.71% Returns in 10 Year SIP. It is a top-rated fund by CRISIL and Value Research.

Nippon India Small Cap Fund - Direct Plan-Growth

This small-cap fund from the Nippon India mutual fund is a 11-year-old fund launched on September 16, 2010. It is a medium-sized fund of its category. The size of Asset Under Management (AUM) is Rs 19768.28 crore. The Net asset value (NAV) dated 26th May 2022 is Rs 83.6924. It has an expense ratio of 1.02%. While the category average is 0.76%. The fund has higher expense ratio compared to its category average. The fund is managed by Mr Samir Rachh since January 2017. He manages open-ended schemes of the Nippon India Mutual Fund. 

It is an open-ended small-cap fund. The fund is rated moderately high risky for investments. However, it is also rated 4-star by CRISL and Value Research, respectively. The fund has given the above average performance among the peer funds. NIFTY Smallcap 250 TRI is the fund's benchmark. 

One can start investing in this fund by investing the minimum investment amount of Rs 5,000 for lump-sum payments. Whereas, to start SIP in this fund, the minimum amount required is Rs 1,000. To invest additional, the minimum required amount is Rs 1000. The fund has no Lock-in period. However, it charges % for redemption or exit within 30 days of the investments. 

Absolute & Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 19.19% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	15.71%	15.71%
2 Year	164.65%	62.68%
3 Year	94.82%	24.82%
5 Year	120.03%	17.07%
10 Year	659.86%	24.08%
Since Inception	736.92%	19.91%

SIP Returns

It has delivered negative returns in the last 1 year of SIP. 

Tenure	Absolute Returns	Annualised Returns
1 Year	-2.60%	-4.79%
2 Year	37.84%	34.35%
3 Year	63.68%	34.79%
5 Year	75.91%	22.78%
10 Year	219.71%	23.50%

Portfolio

The fund has 97.35% investment in equities of which 8.03% is in large-cap stocks, 7.54% is in mid-cap stocks, and 69.64% is in small-cap stocks. The fund has the majority of its money invested in the Capital Goods, Chemicals, Financial, Technology, and Consumer Staples sectors. It has taken less exposure in Capital Goods, and Chemicals sectors compared to other funds in the category. The fund's top holdings are in TI Financial Holdings Ltd., NIIT Ltd., Grameen Financial Services Pvt Ltd., KPIT Engineering Ltd., and Magma Fincorp Ltd.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.