If an investor wants to invest in small-cap mutual funds, it is advisable to stay invested for a long time. As per Value Research’s suggestion for small-cap mutual fund investors, one should not invest in such mutual funds whose tenure is less than 7 years. On the other hand, if the investor invests for 7 years or more, then small-cap mutual funds would be an ideal equity option for investment. Today we are going to tell about one such fund.
Nippon India Small Cap Fund has given good returns to the investors in the last seven years. In the last seven years, the monthly SIP investment of Rs 10,000 in this fund has grown to Rs 17.58 lakh.
return calculation
If we understand the calculation of three years, then this small cap mutual fund SIP has given 24.70 percent annual return and about 94 percent real return. The average annual return during this period has been 22%. Similarly, it has given annual return of 17.45 per cent in five years, while the net return has been 123.68%. After this, the category return has been 13.60 percent. Since September 16, 2010, this mutual fund has given 20 percent annual return and 750 percent net return.
SIP Calculation
If an investor had invested Rs 10,000 in it through SIP from three years ago, he would have got Rs 5.86 lakh in today’s time. On the other hand, investing Rs 10,000 every month five years ago would have fetched Rs 10.49 lakh. Similarly, if the investor had invested seven years back through Monthly SIP at Rs 10,000, he would have got Rs 17.58 lakh today.
These plans gave great returns
Nippon India Small Cap Fund – Direct Plan, SBI Small Cap Fund – Direct Plan, Axis Small Cap Fund – Direct Plan, Kotak Small Cap Fund – Direct Plan and Canara Robeco Small Cap Fund – Direct Plan are some other small-cap mutual fund plans . Which has given excellent returns to its investors over a long period.