This Small Cap Fund Has Delivered Up To 155.33% Returns In Last 2-Years, Check SIP Returns

Small-cap mutual funds invest in firms whose market capitalization is less than that of the top 250 equities on the exchange. These funds have been a popular investment option due to their excellent returns. However, these funds are also 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.

Franklin India Smaller Companies Fund - Direct-Growth

This Small-Cap mutual fund scheme was launched on 13th January 2006 by the Franklin Templeton Mutual Fund. This scheme has Rs 6950.84 Crore worth of Assets under Management. The recent declared NAV on 26th April 2022 is Rs 99.0986. This fund has a high expense ratio of 1.05 when compared to its category average expense ratio. It is a medium-sized fund of its category. 

It is a highly risky fund for investment. However, it has offered good returns. The fund is rated 1-star by the rating agency CRISIL. For investment in this fund, the minimum lump-sum amount required is Rs 5,000 and for SIP, it is Rs 500. This scheme doesn't have any lock-in period. However, it charges 1% on redemption within 365 days. This fund predominantly invests ins small companies to generate long term returns.

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 20.67% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	36.25%	36.25%
2 Year	155.33%	59.59%
3 Year	70.24%	19.39%
5 Year	76.66%	12.05%
Since Inception	476.11%	20.67%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	9.00%	17.13%
2 Year	50.02%	44.57%
3 Year	63.15%	34.52%
5 Year	64.99%	20.13%

Portfolio

Fund has 95.77% investment in equities of which 3.8% is in large-cap stocks, 4.81% is in mid-cap stocks, and 65.51% in small-cap stocks. The fund has the majority of its money invested in the Financial, Construction, Services, Chemicals, and Technology sectors. It has taken less exposure in the Financial, Construction sectors compared to other funds in the category. The fund's top holdings are Brigade Enterprises Ltd., Deepak Nitrite Ltd., KPIT Engineering Ltd., KPR Mills Ltd., and CCL Products (India) Ltd.

Disclaimers

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.