SBI Mutual Fund | The scheme of these funds is making you rich, you will get a return of Rs 1.35 crore
SBI Mutual Fund Some smallcap mutual funds have performed well in the last 15 years. These schemes have increased the monthly SIP of Rs 10,000 to Rs 1.35 crore during this period. The Economic Times has reported about these schemes of mutual funds. The report analyzes 9 smallcap funds that have completed 15 years in the market. Five of these mutual funds have been great for investors. The fund has converted monthly SIPs of Rs 10,000 into Rs 1.08 crore and Rs 1.35 crore. However, the report also warns that small cap funds are risky investments.
SBI Small Cap Fund
According to the report, SBI Small Cap Fund has given the highest return of 24.03% in the last 15 years. In this, the monthly SIP of Rs 10,000 has been converted into Rs 1.35 crore.
DSP Small Cap Fund
DSP Small Cap Fund has turned a monthly SIP of Rs 10,000 into Rs 1.16 crore in 15 years with returns of 22.33%.
Franklin India Smaller Companies Fund
Franklin India Smaller Companies Fund has given a return of 21.97%. In the last 15 years, investors have raised Rs 1.13 crore in this scheme through monthly SIP of Rs 10,000.
Quant Small Cap Fund
Quant Small Cap Fund's return was 21.71%. Investors earned Rs 1.10 crore through 15-year monthly SIP.
Kotak Small Cap Fund
Kotak Small Cap Fund gave a return of 21.52%. Investors have got Rs 1.08 crore from SIP of Rs 10,000 per month in 15 years. Of the remaining 9 smallcap funds, 4 have given returns between 17.47% and 20.32% in the last 15 years. These funds have given returns ranging from Rs 76.20 lakh to Rs 97.87 lakh with a monthly SIP of Rs 10,000. These four schemes are HDFC Small Cap Fund, ICICI Pru Small Cap Fund, Sundaram Small Cap Fund and Aditya Birla SL Small Cap Fund.
Risk in smallcap plan
The report also warns that smallcap plans are considered risky. This is because they invest in shares of very small companies. As per SEBI rules, it is mandatory for these schemes to invest in stocks ranked below 250 in terms of market capitalisation. The report further states that these companies may have issues related to corporate governance. These can also be closed during challenging times in the market. Therefore investing in small cap stocks is extremely risky. Invest in smallcap plans only if your risk appetite is high, can withstand volatility and the investment tenure is up to 10 years.
Disclaimer : Investing in mutual funds and stock market is based on risk. Before investing in the stock market, definitely consult your financial advisor. tezzbuzz.com will not be responsible for any financial loss.
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