Investing Rs 3 Lakhs In SIPs In This Fund Would Be Worth Rs 5.17 Lakhs Today

At the outset please be informed that we are not recommending any mutual fund schemes. We are just highlighting the returns and other details. Please do not construe this as an advise to invest.

The Axis Small Cap Fund like most other small cap funds has seen good returns over the last 3-years. This is primarily because 3-years ago, there was the outbreak of covid and since than the indices have rallied. In fact, from covid lows, the Sensex has almost doubled.

Axis Small Cap Fund: How the SIPs have performed?

If you had to invest a sum of Rs 5000 each month in the SIPs of Axis Small Cap Fund over the last 60-months your total investment would be Rs 3 lakhs. That investment of 5-years ago of Rs 3 lakhs would today be worth Rs 5.17 lakhs. So, the SIPs have generated an absolute returns of 72%. Axis Small Cap Fund has an asset size of almost Rs 11,500 crores.

Among the top holdings of the fund include names like Narayana Hrudulaya, Galaxy Surfactants, Fine Organics, CCL Products etc. The minimum SIP amounts to invest in the fund is Rs 100.

Please note that returns from mutual funds are taxed at 15%, if you redeem before one year. After 1 year, you are required to pay Long-term Capital Gains tax of 10% on returns of Rs 1 lakh+ in a financial year.

Small cap funds returns can be volatile

Please note, that among the riskiest of mutual fund schemes are the small cap funds. Their returns can be very volatile and much more when compared to largecap funds. So, if you desire to avoid taking a risk, it is better to go with largecap funds, though they are volatile, the volatility is much lower. We suggest that investors avoid lumpsum and look to invest through the Systematic Investment Plan route only.