Dhanteras isn't just an occasion to buy gold or silver, but also an opportunity to make smart investments. This year, financial experts recommend investors start a SIP (Systematic Investment Plan) in small-cap mutual funds. Small-cap funds invest in small- and mid-sized companies.
These companies have a high potential for long-term growth, which can provide attractive returns for investors. Investing through a SIP (Systematic Investment Plan) is considered preferable. It balances market fluctuations and helps investors generate good returns over the long term.
Three Top Small-Cap Funds
Three top small-cap funds offer investors three attractive options this Dhanteras. The first is the Quant Small Cap Fund, whose latest NAV is ₹257.07. Over the past five years, this fund has delivered a CAGR of 35.16%. However, its Riskometer is "Very High," meaning investors must be prepared to face market fluctuations. This fund has a daily AUM of ₹30,293.57 crore.
The second fund is the Nippon India Small Cap Fund, with a latest NAV of ₹168.35. This fund has delivered a CAGR return of 33.65% over the past five years. Its Riskometer is also "Very High," and its Daily AUM is ₹67,600.85 crore. This fund is considered particularly suitable for long-term investments.
The third option is the Bandhan Small Cap Fund, with a latest NAV of ₹46.69. This fund has delivered an annualized return of 32.25% over the past five years. With a "Very High" Riskometer, investors should be prepared to deal with market fluctuations. The Bandhan Small Cap Fund has a daily AUM of ₹16,392.62 crore and is considered a good option for long-term investors.
Not only are the returns high, but the risks are also high.
These funds have generated returns above 30% over the past five years, which is attractive to investors. However, investors should keep in mind that the Riskometer is "Very High." This means that market volatility can be very high. Investors should invest only after considering their financial situation and risk tolerance.
Points to consider when choosing a fund
Financial experts say that investing in small-cap funds has the potential for higher returns, but the risk is also very high. Therefore, these funds are suitable only for long-term investors. Before investing, it is important to evaluate your financial situation, investment goals, and risk tolerance.
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
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