We all invest for the long term in order to build a substantial corpus for various financial goals. And during this journey, mutual fund SIPs have been the optimal instrument to use, since they offer both disciplined and regular investing through their systematic investment option. Additionally, because we are discussing equities schemes in particular, SIPs invested at different times, i.e. when markets are rising or falling, permit cost averaging.
1. Nippon India Small Cap Fund:
Mutual fund plan from the house of Nippon India has Rs. 17197 crore in assets under management. The fund's cost ratio is 1.81 percent. The fund's performance is compared to that of the NIFTY Smallcap 250 TRI index. SIPs in the programme can be initiated with as little as Rs. 100, and there is a 1% exit load penalty in the event of redemption within 30 days.
The fund's assets are allocated among big, mid, and small size equities, having a small cap exposure of more than 73%. Investors with a minimum investment horizon of three to four years and a strong tolerance for risk may invest in the fund.
The fund beat its benchmark offering's return of 81 percent during a one-year period. Deepak Nitrite, Tube Investments, Birla Corp, Bajaj Electricals, Radico Khaitan, Navin Flourine, Orient Electric, and Balram Chini Mills are among the fund's top holdings.
2. Quant Tax Plan:
This equity-linked savings programme also outperformed with an annualised return of 24.48 percent during a 10-year SIP period. The fund's corpus is heavily weighted between large and small cap stocks.
Apart from capital appreciation, the fund provides income tax benefits, since investments up to Rs. 1.5 lakh may be deducted under section 80C. Bear in mind that because this is a tax plan, there is a three-year minimum lock-in period.
The fund's primary holdings include L&T, RIL, ITC, SBI, Vedanta, Adani Ports, Indiabulls Real Estate, HDFC Bank, and ICICI Bank. SIPs in the fund can be started with a minimum investment of Rs. 500. The fund beat the Nifty 50 TRI in terms of returns over the previous year, generating an 80.8 percent return.
3. Kotak Small Cap Fund:
This small cap fund was started in 2005 and has generated an annualised return of 18.26 percent since then. The fund's benchmark is the Nifty Small Cap 100 TRI, and its cost ratio as of October 31 is 1.96 percent.
As the fund's name implies, it has a high concentration of tiny cap stocks, including Century Plyboards, Carborundum, Sheela Foam, Persistent Systems, and Galaxy Surfactants among its top holdings. SIPs in the fund can be initiated for as little as Rs. 1000. The fund's return over the last year has been 86.41 percent.
4. SBI Mutual Fund:
AUM of Rs. 10626 crore as of October 31, 2021, attracts an inflow of 46% of investment in the small cap category for this SBI fund. Since its start in 2009, the fund has returned a total of 21.12 percent. Returns are compared to the S&P BSE Small Cap TRI index.
Small-cap stocks make up more than six out of every ten of the investments made in equities. Carborundum, Sheela Foam, Blue Star, Hatsun Agro, Finolex, JK Cement, V-guard, Elgi, V-Mart, and Triveni Turbine are among the top 10 equities in the fund's portfolio.
The fund's 1-year return was 59.95%, outperforming the benchmark's return of almost 73 percent by a wide margin. In addition, the SIP may be started for merely Rs. 500 in the plan. Furthermore, when it comes to the fund's star rating, Value Research has given it a 4-star rating.
5. Mirae Asset Emerging Blue Chip Fund:
An AUM of more over Rs. 20000 crore, this is a big and mid-cap fund from Mirae Asset. The fund's expense ratio is 1.68 percent, despite the fact that it is classified as a blue-chip fund. Large and mid-cap funds make up the bulk of an investor's equity allocation.
It has beaten Nifty 50 by a smidge and returned 49.09 percent in one year. SIP investments must be at least Rs. 1000, and lump-sum investments must be at least Rs. 5000 to get started. For example, ICICI Bank, InfoSys,
Axis Bank and SBI are among the top 10 equities in the portfolio of the fund. TCS and Gujarat State are also included.
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