Do Small cap mutual funds mainly invest in small cap stocks?
Reportedly for future safety and to keep yourself financially strong in times of emergency, there is a need to keep saving continuously. Mutual funds can prove to be a better option for this. You can choose it according to your financial goal. There are many categories of mutual funds, from large cap, mid cap, flexi cap to small cap or even sectoral or dividend yield. It depends on you which one you want to invest in. ET Now did research on some such small cap mutual fund schemes and selected three such schemes, in which a fund of Rs 1 crore can be created by investing Rs 10,000 every month.
Perhaps these are mutual funds that invest a large part of their assets in small cap companies (whose market capitalization is less than Rs 5,000 crore). Small cap mutual funds mainly invest in small cap stocks. Here you are being told about three such mutual fund schemes, which are successful in converting 15 years of continuous investment into a large amount. This open-ended scheme has given 18.23 percent return since its launch in february 2005. In such a situation, if someone had invested Rs 10,000 every month in a 15-year mutual fund scheme, he would have collected up to Rs 1 crore. Whereas the amount invested for 15 years is 18 lakhs.
This scheme, launched in september 2009, has given a return of up to 20.74 percent. If someone had invested Rs 10,000 every month in this scheme for 15 years, his accumulated capital would have become Rs 1.25 crore. In this too, the amount invested for 15 years is Rs 18 lakh.