High-risk funds aid in the accumulation of long-term wealth. By investing in these funds, one can prepare for long-term financial goals such as retirement, a world tour, the purchase of a dream home, marriage, and so on.
High-risk funds are long-term investments that are intended to be held for a period of more than five years. Equity Funds are mutual funds that are recommended for such investments. An equity fund is regarded as a high-risk, high-return investment. One factor worth emphasizing is that Sensex is nearing a record high of 53,000 points, making lump-sum investments risky.
PGIM India Midcap Opportunities Fund
PGIM India Midcap Opportunities Fund is a midcap fund, which indicates that if the benchmark indices fall, the NAV may decrease more, and if the indices rise, the returns may be superior to the index gains.
This fund has been rated "5 Star" from ValueResearch Online.
The fund has had an exceptional performance in the last year, with returns of 97.7% and 3-year annualized returns of 26.78%. Over the last five years, the returns have been around 20.75 percent.
Most of the funds are invested in midcap equities including names NIIT Technologies Ltd, Max Healthcare Institute Ltd, Muthoot Finance Ltd, ICICI Bank Ltd, and nd MindTree Ltd.
For July 12, 2021, the NAV of PGIM India Midcap Opportunities Fund is 40.86. PGIM India Midcap Opportunities Fund's direct plan has an expense ratio of 0.41 percent. It has an AUM of 1,952 crores.
Kotak Small Cap Fund
This is a fund that has been rated by "4 Star" from ValueResearch Online. A three-year SIP of Rs 10,000 would have resulted in a corpus of Rs 7.08 lakhs. This signifies that an amount of Rs 3.6 lakhs contributed to the creation of a Rs 7.08 lakhs fund.
The holdings of the fund include stocks like Century Plyboards, Sheela Foam, Carborundum Universal, Persistent Systems, and Lux Industries.
The fund has had an exceptional run in the last year, returning 121.79%, with a three-year annualized return of 126.57%. The 5-year returns have hovered around 21.48%.
Axis Small Cap Fund
This fund has been rated "5 Star" from ValueResearch Online. Those interested in investing in this fund can do so at the current NAV of Rs 59.23. Axis Small Cap Fund Direct-Growth has Rs 6,009 Crores worth of assets under management (AUM). The 1-year returns on Axis Small Cap Fund Direct-Growth are 88.76 percent.
It has returned an average of 26.29 percent per year since its inception. The fund's top 5 holdings are in Galaxy Surfactants, Tata Elxsi, JK Lakshmi Cement, CCL Products, Narayana Hrudayalaya Ltd.
A five-year SIP of Rs 10,000 would have resulted in a corpus of Rs 12.02 lakhs. This signifies that an amount of Rs 6 lakhs contributed to the creation of a Rs 12.02 lakhs fund.
Nippon India Small Cap
Nippon India Small Cap Fund Direct is a medium-sized fund in its category, with Rs 15,353 crores in assets under management (AUM). The fund's expense ratio is 1.02 percent, which is higher than the expense ratios charged by most other Small Cap funds. The Nippon India Small Cap Fund Direct's 1-year growth returns are 110.43 percent. It has returned an average of 26.28 percent per year since its inception. The fund has the majority of its money invested in Engineering, Chemicals, FMCG, Technology, Services sectors.
This fund has been rated "4 Star" from ValueResearch Online.
A Rs 10,000 SIP over three years would have resulted in a corpus of Rs 6.67 lakhs. This means that a sum of Rs 3.6 lakhs was contributed to the establishment of a fund worth Rs 6.67 lakhs.
SBI Small Cap Fund
This fund has been rated "4 Star" from ValueResearch Online. SBI Small Cap Fund Direct-Growth is a medium-sized fund in its category, with assets under management (AUM) of 9,091 Crores. The fund's expense ratio is 0.85 percent, which is comparable to that of most other Small Cap funds.
The fund's top 5 holdings are in Elgi Equipments Ltd., V-Guard Industries Ltd., Carborundum Universal Ltd., Navin Fluorine International Ltd., Sheela Foam Ltd.. The NAV of the SBI Small Cap Fund for Jul 12, 2021 is 104.1. The 1-year returns on SBI Small Cap Fund Direct-Growth are 90.88 percent. Since its inception, it has generated an average annual return of 27.78 percent.
High-risk mutual funds are those that are influenced by equities or stock market risk. It is sensitive to the stock market's volatility.
Investing in mutual funds is risky and investors should understand the risk. Greynium Information Technologies and the author do not take any responsibility for losses incurred based on the decisions in the article. The article is meant for informational purposes only.