Best Rated Small Cap Mutual Fund SIP, Ticked Upto 92% Returns: Check Portfolio

Small-cap funds are suitable for investors who are looking for good returns and ready to take riskier steps to gain that. Here, the portfolio of a small-cap mutual fund has been discussed for investors.

Small cap investment rationale

Mutual fund and SIPs are chosen by investors who want more profits than traditional investment instruments. Small cap mutual funds mean that the fund house will allocate the retail investors' money in the small cap stocks, depending on the market capitalization, listed in the equity markets. are "When you invest for seven years or more, you can expect gains that comfortably beat the inflation rate as well as returns from fixed income options. This is a fund that invests in smaller companies. Compared to those that invest in larger companies, such funds tend to fall more when stock prices fall. So while you can expect higher returns in the long term, there will be more severe ups and downs along the way," rating agency Value Research stated.

Importantly, before investing in mutual funds, NAV and AUM of the mutual funds should be analyzed by the investors.

Axis Small Cap Fund - Growth

Axis Small Cap Fund - Growth is a mutual fund SIP investment that has a NAV of Rs. 61, and the size - Of assets Under Management (AUM) of this fund is Rs. 9052.05 crore. On the other hand, the Expense Ratio (ER) of this fund is 1.95%, while the category average is 1.93%. The ER is marginally higher than the category average, so it can affect the profitability of the investors.

AUM is the total market value of the assets which a mutual fund will manage at a point in time. The Expense Ratio is the percentage, which the fund house will use from the retail investors' investments, for fund management purposes.

This mutual fund SIP has been best rated with 5 Star by rating agency Value Research.

Absolute and annualized returns

As it is a small cap fund, its absolute returns from SIPs have been reported higher in the long term. In the last 1-year SIP return stood at 10.60%, in the last 2 years it has fetched 47.70% returns, in the last 3 years it has given 66.66% returns, in the last 5 years, it has fetched 92.01% returns. Annualized returns from Axis Small Cap Fund - Growth's SIP were 42.65% in the past 2 years, and 36.15% in the past 3 years.

Axis Small Cap Fund - Growth's absolute mutual fund returns are the highest in 5 years terms. In the last 1 year return stood at 39.33%, in the last 2 years it has fetched 127.10% returns, and in the last 3 years it has given 119.74% returns, in the last 5 years it has given 148.57% returns. In the past 2 years, the Axis Small Cap Fund - Growth's annualized returns stood at 50.70%, however, the category average was at 60.60%.

(Data till April 20, 2022)

Portfolio

Axis Small Cap Fund - Growth's total equity holding is 90.16%, and the rest of the 9.83% is invested in other sectors. Among a total of 47 stocks, the Fund's Large Cap Investments are 44.32%, Mid Cap Investments are 18.03%, Small Cap Investments are 18.31%, and 9.50% investments are allocated to other funds.

The top 10 equity holdings of the fund are Galaxy Surfactants Ltd., Tata Elxsi Ltd., Brigade Enterprises Ltd., Narayana Hrudayalaya Ltd., Birlasoft Ltd., Fine Organic Industries Ltd., CCL Products (India) Ltd., Krishna Institute of Medical Sciences Ltd., Orient Refractories Ltd., Chemplast Sanmar Ltd.

Other funds under this category are, DSP Small Cap Fund - Regular Plan - Growth, Nippon India Small Cap Fund - Growth, Quant Small Cap - Growth.

(Also read: Top Rated ELSS Mutual Fund, Given Upto 135% Returns In Long Term: Portfolio Analysis)

Disclaimer

Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.