5 Best Small Cap Mutual Funds for SIP Investment in 2017

5 Best Small Cap Mutual Funds for SIP Investment in 2017

Roboadviso     Top 5 Mutual Funds     Posted On, Wed 17th May, 2017     No comments
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Best Small Cap Mutual Funds for SIP 2017

Small Cap Mutual Funds are those which have a relatively modest market capitalization. The market capitalization of a company refers to its outstanding shares market value. Small cap fund definitions may differ between brokerages, but it is usually a company with small market capitalization of less than INR 5000 crores.

When thoughtfully chosen, small cap funds can offer high rates of growth, which are better than even mid cap and large cap mutual funds. Small caps however also come with highest risk as opposed to mid and large caps. Selection of right stocks of future market leaders with high growth potential by the asset fund management company can reduce the risk and avoid market fluctuation induced problems.

Presented below are the best 5 small cap funds for 2017:

  1. DSP BlackRock Micro Cap Fund – Regular Plan:
  • This small cap fund was launched on 14th June 2007. Since then it has returned 20.07 percent per annum. In the past 5, 3, and 1 year, DSP BlackRock Micro Cap Fund – Regular Plan has shown 32.66, 41.08, and 39.38 percent return per annum. As of Apr 30, 2017, its asset fund size is INR 5,824 crores, with a 2.51 percent expense ratio as of 31st March 2017.
  • The fund’s aim is to get capital appreciation in the long term via investment in a portfolio primarily consisting of stocks which do not fall in the category of top 300 companies via way of market capitalization. The main focus is on deliverance of great performance in the long term through selection of stocks of companies that are not mutually connected to bigger markets nor are sector specific. Its fund managers are Vinit Sambre and Jay Kothari. The Fund is not taking fresh investments as of now.

 

  1. Franklin India Smaller Companies Fund:
  • This small cap fund was launched on Jan 13, 2006. Since then it has returned 16.01 percent per annum. In the past 10, 5, 3, and 1 year, Franklin India Smaller Companies Fund has shown 17.48, 32.36, 32.25, and 31.36 percent return per annum. As of Apr 30, 2017, its asset fund size is INR 5,579 crores, with a 2.38 percent expense ratio as of 31st March 2017.
  • The fund aims to offer capital appreciation in the long term via investments in small and mid cap companies. Usually, it has a minimum of 75% asset investment in small companies. The fund is ideal for investors comfortable with equation of high reward for high risk along with willingness to invest for long term for better benefits. Its fund managers are R Janakiraman, Hari Shyamsunder, and Srikesh Nair.

 

  1. DSP Small & Mid Cap Fund
  • This small cap fund was launched on Nov 14, 2006. Since then it has returned 17.09 percent per annum. In the past 10, 5, 3, and 1 year, DSP Small & Mid Cap Fund has shown 17.32, 26.36, 32.58, and 41.36 percent return per annum. As of Apr 30, 2017, its asset fund size is INR 3,804 crores, with a 2.54 percent expense ratio as of 31st March 2017.
  • The fund main focus is to create capital appreciation in the long term via a portfolio mainly constituting of equity and equity linked securities which do not fall in the category of top 100 companies via way of market capitalization. Investments are primarily in smaller companies with huge potential for growth. Its fund manager is Vinit Sambre.

 

  1. Reliance Small Cap Fund
  • This small cap fund was launched on Sep 16, 2010. Since then it has returned 21.93 percent per annum. In the past 5, 3, and 1 year, Reliance Small Cap Fund has shown 33.60, 37.46, and 43.22 percent return per annum. As of Apr 30, 2017, its asset fund size is INR 3,718 crores, with a 2.03 percent expense ratio as of 31st March 2017.
  • The fund aims to create capital appreciation in the long term via investments in mostly equity and equity linked instruments of small cap stocks. The secondary aim is generation of consistent returns via investments in money market and debt securities. Its fund managers are Sunil B Singhania and Samir Rachh.

 

  1. Kotak Emerging Equity Fund
  • This small cap fund was launched on Mar 30, 2007. Since then it has returned 13.63 percent per annum. In the past 10, 5, 3, and 1 year, Kotak Emerging Equity Fund has shown 13.51, 26.96, 34.33, 34.24 percent return per annum. As of Apr 30, 2017, its asset fund size is INR 1,893 crores, with a 2.12 percent expense ratio as of 31st March 2017.
  • The scheme is an open-ended equity growth fund with focus on generation of long-term capital appreciation via investment in a portfolio consisting of equity and equity linked instruments of mainly small and mid cap companies. Its fund manager is Pankaj Tibrewal.

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