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Your SIP In This Mutual Fund Scheme Would Have Nearly Doubled In 3-Years
For mutual fund investors, the most difficult thing at the moment would be making a choice between mutual fund schemes. The biggest problem is choosing the right one and we shall speak about it later.
Quant Small Cap Fund: Nearly doubling of SIP Money
Money invested in the Quant Small Cap Fund has given a bountiful to readers. If you had to start SIPs somewhere in January of 2020, by investing Rs 10,000 every month it would be worth Rs 6.96 lakhs. This means you invested Rs 3.6 lakhs and are getting Rs 6.96 lakhs back 3-years later. That is massive gains of 93.4%. But then again, small caps are risky and you never know when prices could drop and prices of small cap stocks tend to fall at faster pace than largecaps. In short, they are volatile and extremely volatile.
The portfolio of Quant Small Cap Fund
Obviously, the major part of the portfolio comes from small caps, with RBL Bank, Punjab National Bank, Bikaji Foods, IRB Infrastructure etc. ITC, tops the list of the portfolio. Apart from this some of the other stocks listed have shown volatility in the past, especially stocks like Punjab National Bank. At the moment investors who invested a few years ago are a happy lot and have generated good returns. The fund size at the moment of Quant Small Cap Fund is around Rs 2870 crores, which not bad for a small cap fund.
Should you invest now in the small cap fund?
We normally refrain from making buy and sell calls for mutual funds. But, let's get some facts together and than investors can decide on what they would like to do. To begin with, if you have made such huge profits and decide not to take at least partial money out, it may not be a wise idea. Secondly, to expect similar returns in the next few years would be a little far-fetched. It is hard for any analysts or seasoned investor to say with certain amount of confidence that past track record means best returns for the future. In the past we have seen mutual fund schemes that have not performed, suddenly performing and ones that were laggards doing well. We would suggest SIPs, if you would like to invest as lumpsum can be risky.
Disclaimer
Mutual fund investments are subject to market risk. The above-mentioned information is purely informational and doesn't guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
