This Top-Rated Small-Cap Fund Has Offered 150.84% Returns On 3-Years Of Investments

Small-cap funds invest in small businesses or their stock. These companies experience far more ups and downs than established companies in the big and mid-cap divisions. Small-cap plans are required by the Sebi to invest in companies with a market capitalisation of less than $250 million. These funds must also invest at least 65 per cent of their assets in small-cap companies.

In this article, we have given insights into one small-cap fund that has given bets returns in the category in annualised return in 3- years. The fund has also offered 150.84% absolute returns in the same tenure. This fund is a top-rated small-cap fund by the CRISIL. Read to know more!

BOI AXA Small Cap Fund - Direct Plan-Growth

This equity Small-cap Mutual Fund Scheme is a 3-year-old fund launched on 19 December 2018 by the BOI AXA Mutual Fund. It is an open-ended small fund of its category. The Asset under Management (AUM) of this fund is Rs 283.5 Crore. The Net Asset Value (NAV) declared on 09th May 20222 is Rs 25.46%. It has a high expense ratio that stood at 1.32% compared to its category average expense ratio. The fund expects returns by investing predominantly in equity and equity-related securities of small-cap companies. 
 
The fund is a highly risky fund for investment. However, it is also rated 5-star by the rating agency CRISIL. The benchmark of this fund is NIFTY Smallcap 250. To start investment in this fund, the minimum investment amount required is Rs 5,000. For additional investment, it is Rs 1,000. Whereas, for SIP it is Rs 1,000. This fund has no lock-in period. However, it charges 1% for the redemption of units in excess of 10% of the investment within 365 days. 

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 31.75% average annual returns. The fund has also shown very good performance among peer funds.

Tenure	Absolute Returns	Annualised Returns
1 Year	21.64%	21.51%
2 Year	157.17%	60.26%
3 Year	150.84%	35.83%
Since Inception	154.60%	31.75%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	-2.18%	-4.02%
2 Year	39.75%	35.97%
3 Year	74.69%	39.83%

Portfolio

The fund is invested in equities to the tune of 94.26 per cent, with 5.63 per cent in large-cap companies, 2.84 per cent in mid-level stocks, and 63.48 per cent in small-cap stocks. The fund contains a 0.05 per cent debt investment, with 0.05 per cent of that in government securities.

The Financial, Materials, Technology, Capital Goods, and Chemicals sectors account for the majority of the fund's holdings. In comparison to other funds in the category, it has less exposure to the Financial and Materials sectors.

KPR Mills Ltd., ICICI Bank Ltd., Balrampur Chini Mills Ltd., Greenpanel Industries Ltd., and TI Financial Holdings Ltd. are among the fund's top holdings.

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.