Is it a good time to invest in small cap funds?
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Is it a good time to invest in small cap funds?
Small-cap funds can perform exceptionally well during a bullish market phase. However, these funds can go through some difficult market phases, leading to an abrupt fall in their returns. Investors should practice caution while investing in these funds.
Should we do SIP in small cap fund?
Across all your SIPs, you are investing 25\% in a small cap fund that carries a high risk as small cap companies are more volatile. Ideally, try to restrict the allocation towards small cap funds between 5\% to 10\% of your overall investment as these investments have high risk.
Is small cap high risk?
Small-cap companies tend to be riskier investments than large-cap companies. They have greater growth potential and tend to offer better returns over the long-term, but they do not have the resources of large-cap companies, making them more vulnerable to negative events and bearish sentiments.
Which Small Cap SIP is best?
Top 10 Small Cap Mutual Funds
| Fund Name | Category | 1Y Returns |
|---|---|---|
| SBI Small Cap Fund | Equity | 54.9\% |
| Nippon India Small Cap Fund | Equity | 75.6\% |
| Edelweiss Small Cap Fund | Equity | 70.9\% |
| Canara Robeco Small Cap Fund | Equity | 76.0\% |
What is small cap sip?
11 min read. Small-cap equity funds are those that invest in equity shares of companies whose market capitalisation is less than Rs 5,000 crore.
Which small-cap Fund is best 2021?
| Mutual fund | 5 Yr. Returns | Min. Investment |
|---|---|---|
| Union Small Cap Fund – Direct Plan – Growth | 20.12\% | ₹5000 |
| SUNDARAM SMALL CAP FUND Direct Plan – Growth | 16.51\% | ₹100 |
| HSBC Small Cap Equity Fund – Growth Direct | 18.96\% | ₹5000 |
| IDBI Small Cap Fund Direct Plan – Growth | — | ₹5000 |