Top-Rated Small Cap Equity Fund Delivered 223.70% Absolute Return In 3 Yrs; Know More

Since many Small Cap funds have provided very strong returns since their inception, they can be a good choice for your portfolio.

It is a good opportunity to invest in equities mutual funds now, particularly mid cap and small-cap funds. However, we recommend doing your own research and making the right investment decision. Here we have just highlighted one small-cap mutual fund that has given good returns.

Nippon India Small Cap Fund is a top-rated small-cap equity mutual fund that has given high annualised return in the 3 years under the Direct Plan-Growth.

Nippon India Small Cap Fund

This is a high-risk equity mutual fund with 5-star rating from Value Research and CRISIL.The stock. Its benchmark is NIFTY Small Cap 250 TRI. As on March 31, 2023, it has Rs 24,491 crore assets under management (AUM) and Net Assets Value (NAV) as on 26 April 2023 is Rs 104.1453.

If you had invested Rs 10000 upfront and Rs 1000 monthly SIP for 3 years, which in total makes Rs 3,70,000 in 3 years would have turned Rs 5,94,649 in 3 years which is 32.51% annualised returns under the Direct Plan-Growth option.

Returns

The fund under the Direct Plan-Growth option has delivered attractive returns in the past 5 years with lumpsum as well as SIP mode. Under the lumpsum investment option, it has delivered 9.31% absolute annualised return in 1 year. In 3 years it delivered 59.25% absolute return and 26.20% annualised returns. In 3 years it delivered the highest 223.70% absolute and 47.82% annualised returns. In 5 years it delivered 114.07% absolute and 16.43% annualised returns.

On SIP, it has delivered 9.13% absolute and 17.37% annualised return in 1 year, 17.25% absolute and 16.14% annualised return in 2 years, 56.68% absolute and 31.47% annualised return and 94.85% absolute and 27.04% annualised return.

Investments Details

You can begin investing in this with a minimum required amount of Rs 5000 for lumpsum and a minimum of Rs 1000 for additional investment. Whereas for SIP, the minimum amount required for investments is Rs. 1000. The fund charges 1% for redemption within 30 days of investment. Its expense ratio is 0.92%.

Portfolio & Holdings

As mentioned above, this is an equity mutual fund havings 95.97% investments in equities, followed by 2.64% in cash & cash equivalent instruments and 1.39% in debt instruments. The top 5 stocks hold 10.06% which includes Tube Investments Of India (3.40%), KPIT Technologies (1.80%), HDFC Bank (1.77%), Bank of Baroda (1.59%), and Zydus Wellness (1.50%). The fund has major exposure in sectors such as Capital Goods (15.64%), Financial (1.93%), Chemicals (10.17%), Consumer Staples (7.96%) and technology (7.59%).

Disclaimer - Mutual fund investments are subject to market risk. Read all scheme-related 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.