Small-cap mutual funds are subject to a variety of market risks, and it is advised that investors consider all of the factors that impact the performance of these funds. You must consider aspects such as how much risk you are prepared to accept, what your investing aim is, and so on. These funds have historically outperformed other categories and generated alpha over time. Here we compared two small-cap (Emerging Businesses Fund). These two funds offered good returns over the year. Read to know more.
L&T Emerging Businesses Fund - Direct Plan-Growth
This small-cap mutual fund scheme is an 8-year-old fund launched on 12 May 2014 by the L&T Mutual Funds. The AUM of this fund is Rs 7996.33 crore. The NAV of this fund declared on 26th April 2022 is Rs 48.834. The fund has an expense ratio of 0.81%, which is close but higher than its category average expense ratio. It is a medium-sized fund of its category.
It is a high-risk mutual fund for investment. It has been rated 3-star by the CRISIL. It has given average performance among peer funds. It requires a minimum of Rs 5000 for lump-sum investment and Rs 500 for SIP. The Lock-in period is not applicable here in this fund. The fund charges a 1% exit charge on more than 10% investment redemption within 365 days.
The fund has 98.51% investment in equities of which 69.01% in small-cap stocks. The fund's top holdings are in KPR Mills Ltd., Balrampur Chini Mills Ltd., Grindwell Norton Ltd., Brigade Enterprises Ltd., and Orient Refractories Limited.
IDFC Emerging Businesses Fund - Direct Plan-Growth
This small-cap mutual fund scheme was launched on 25th February 2020. This scheme has Rs 1410.03 crore worth of Assets under Management. The recent NAV declared on 26th April 2022 is Rs 22.13. This scheme has an expense ratio of 0.61%, which is less than its category average expense ratio. It is a small size fund of its category.
It is a high-risk mutual fund for investment. It requires a minimum of Rs 5000 for lump-sum investment and Rs 100 for SIP. The Lock-in period is not applicable here in this fund. It has a 1% exit charge on redemption within 365 days.
The fund has 95.66% investment in equities of which 67.91% in small-cap stocks. The fund's top holdings are in Shaily Engineering Plastics Ltd., KPIT Technologies Ltd., NOCIL Ltd., Balrampur Chini Mills Ltd., and Radico Khaitan Ltd.
Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.