These 2 Smallcap Index Funds Has Delivered Over 10% SIP Return In Last 1 Year

Index funds don't generate as much attention in the markets as their rivals, but their major advantage is that they are consistent when compared to other mutual fund or ETF types, which frequently struggle with volatility. If you want to diversify your portfolio, index funds are an excellent idea. In this article, we have analysed two Small cap Index Funds. These two funds have offered good returns in such a short span via SIP. Check out the top holding and returns along with other details.

Motilal Oswal Nifty Smallcap 250 Index Fund (MOFSMALLCAP) - Direct Plan-Growth

This Small-Cap Index Fund is a 2-year-old fund launched on 06th September 2019. It is an open-ended Small Cap mutual fund scheme from Motilal Oswal Mutual Fund.

It has Asset Under Management worth Rs 277.28 Crore. The NAV or the Net Asset Value of this fund is 21.8876 as of 13th April 2022. Its expense ratio is 0.31%, which is close to its category average, but higher than the average.  
This fund is a moderately high risky fund for investment. For investment in this fund, the minimum investment amount required is Rs 500 for a lump-sum payment and the same Rs 500 for SIP. This Fund has no-in period. 

The fund charges 1% exit load if redemption is made within 15 days. The benchmark of this FoF is Nifty Smallcap 260 TRI. Further, for investment returns, this scheme seeks to correspond to the performance of the Nifty Smallcap 250 Index subject to tracking errors.  

The fund has 100.06% investment in Indian stocks of which, 6.83% is in mid-cap stocks, and 75.04% in small-cap stocks. The fund's top holdings are BSE Ltd., Central Depository Services (India) Ltd., Tanla Platforms Ltd., UTI Asset Management Company Ltd., and KPIT Engineering Ltd.

Returns

Under the Direct Plan-Growth scheme of this fund, it has delivered 40.84% returns in the last 1-year. Since its launch, it has delivered 35.29% average annual returns. 

SIP Returns

SIP Period	Absolute Returns	Annualised Returns
1 Year	10.75%	20.52%
2 Year	56.79%	50.17%

 

Nippon India Nifty Smallcap 250 Index Fund - Direct Plan-Growth

This Small-Cap Index Fund is also a newly launched Index Fund, launched on 16th October 2020 by the Nippon India Mutual fund. It is an open-ended medium-sized fund of its category.

The Direct Plan-Growth scheme of this fund has worth Rs 291.29 crore Asset Under Management. The NAV of this scheme declared on 13th April 2022 is Rs 19.5694. The fund has an expense ratio of 0.3%, which is less than the category average expense ratio. 

This is a highly risky fund for investment that doesn't guarantee returns. However, this fund has given a relatively good return since its inception. To start investment in this fund, the minimum amount required for lumpsum payment is Rs 100 and for SIP, it is Rs 100 as well.

This fund has 0exit load and also there is no lock-in period. The benchmark of this fund is Nifty Smallcap 250 TRI. The aims to offer investment returns by closely corresponding to the total returns of the securities as represented by the Nifty Smallcap 250 Index before expenses, subject to tracking errors.

 
The fund has 98.56% investment in Indian stocks of which, 6.77% is in mid-cap stocks, and 73.73% in small-cap stocks. The fund's top holdings are BSE Ltd., Central Depository Services (India) Ltd., Tanla Platforms Ltd., UTI Asset Management Company Ltd., and KPIT Engineering Ltd.

Returns

In the last 1-year, the ahs offered 40.77% returns, whereas, since its inception, it has given 56.90% annual average returns. 

SIP Returns

SIP Period	Absolute Returns	Annualised Returns
1 Year	10.61%	20.25%

Disclaimers

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.