This Small Cap Fund Has Delivered Close To 70% SIP Returns In Last 5 Years

Small-cap mutual funds should be purchased with a long-term investment horizon in mind. Because the money from these funds is invested in firms that are in the early or fledgling stages, they always involve an added risk. In this article, we have given insights into one such small-cap fund that has given good returns since its inception.

IDBI Small Cap Fund - Direct Plan-Growth

This is an open-ended small-cap mutual fund launched on 21 June 2017 by the IDBI Mutual Fund. The fund's assets under management for the Direct Plan-Growth is Rs 128.73. The recent NAV of this fund is Rs 18.42, declared on 25th March 2022. The expense ratio of this fund is 1.54%, which is way higher than its category average when compared.

This fund scheme seeks to generate returns by investing in equity and other equity-related investment instrument for a long period of time. The fund is highly risky to invest in and doesn't guarantee a return. However, its performance is good but relatively below among the peer funds. This fund has been rated 2 stars by the CRISL and 3 stars by the Value research. 

Absolute And Annualised Returns

Lump-Sum Investment Returns

The has delivered 184.26% absolute returns in 2 years of investment tenure. It has also given 13.69% annual average returns.

Investment Tenure	Absolute Returns	Annualised Returns
1 Year	44.47%	44.47%
2 Year	184.26%	68.60%
3 Year	89.12%	23.64%
Since Inception	84.20%	13.69%

SIP Returns

SIP Tenure	Absolute Returns	Annualised Returns
1 Year	13.02%	25.09%
2 Year	58.62%	51.74%
3 Year	69.76%	37.62%

Portfolio

The fund has 99.38 percent of its assets in Indian equities, with 6.22 percent in mid-cap businesses and 81.21 percent in small-cap stocks.

The majority of the fund's holdings are in Materials, Chemicals, Capital Goods, Metals & Mining, and Consumer Discretionary. It has less exposure to the Materials and Chemicals industries than other funds in the category.

The fund's top holdings are Elgi Equipments Ltd., Greenpanel Industries Ltd., KNR Constructions Ltd., Grindwell Norton Ltd., and Navin Fluorine International Ltd.

Disclaimer

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.