Small-cap mutual funds are ideal for investors who are looking to invest in small and mid-cap companies that have a high potential for growth. These funds invest in companies that have a market capitalization of less than Rs. 500 crores, making them a high-risk, high-reward investment option. In this blog, we have compiled a list of the top 10 small-cap mutual funds that investors can consider in 2023.
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SBI Small Cap Fund
SBI Small Cap Fund is a top-performing mutual fund that invests in small-cap companies with high growth potential. The fund has a consistent track record of delivering impressive returns over the long term. The fund’s assets under management (AUM) currently stand at Rs. 12,676 crores.
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HDFC Small Cap Fund
HDFC Small Cap Fund is another top-performing mutual fund that has consistently delivered impressive returns to investors over the long term. The fund’s AUM currently stands at Rs. 10,745 crores.
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Nippon India Small Cap Fund
Nippon India Small Cap Fund is a high-risk, high-reward mutual fund that invests in small-cap companies with a market capitalization of less than Rs. 500 crores. The fund’s AUM currently stands at Rs. 12,042 crores.
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Kotak Small Cap Fund
Kotak Small Cap Fund is a small-cap mutual fund that invests in companies that have a market capitalization of less than Rs. 500 crores. The fund’s AUM currently stands at Rs. 2,870 crores.
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Aditya Birla Sun Life Small Cap Fund
Aditya Birla Sun Life Small Cap Fund is a top-performing mutual fund that invests in small-cap companies with high growth potential. The fund’s AUM currently stands at Rs. 2,802 crores.
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Franklin India Smaller Companies Fund
Franklin India Smaller Companies Fund is a high-risk, high-reward mutual fund that invests in small-cap companies with a market capitalization of less than Rs. 500 crores. The fund’s AUM currently stands at Rs. 3,561 crores.
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DSP Small Cap Fund
DSP Small Cap Fund is a small-cap mutual fund that invests in companies that have a market capitalization of less than Rs. 500 crores. The fund’s AUM currently stands at Rs. 5,743 crores.
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Axis Small Cap Fund
Axis Small Cap Fund is a top-performing mutual fund that invests in small-cap companies with high growth potential. The fund’s AUM currently stands at Rs. 6,089 crores.
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IDFC Small Cap Fund
IDFC Small Cap Fund is a small-cap mutual fund that invests in companies that have a market capitalization of less than Rs. 500 crores. The fund’s AUM currently stands at Rs. 1,088 crores.
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Sundaram Small Cap Fund
Sundaram Small Cap Fund is a high-risk, high-reward mutual fund that invests in small-cap companies with a market capitalization of less than Rs. 500 crores. The fund’s AUM currently stands at Rs. 1,123 crores.
 conclusion
small-cap mutual funds are ideal for investors who are willing to take on high risks for high rewards. However, investors should conduct thorough research and consult a financial advisor before investing in any mutual fund. The above-mentioned funds have consistently delivered impressive returns over the long term and can be considered by investors looking to invest in small-cap companies.
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Frequently Asked Questions (FAQs)
Q: What is a small-cap mutual fund?
A: A small-cap mutual fund is a type of mutual fund that invests in small-cap companies, which have a market capitalization of less than Rs. 500 crores.
Q: What are the benefits of investing in small-cap mutual funds?
A: Small-cap mutual funds have the potential to deliver higher returns than large-cap mutual funds. Small-cap companies have a high potential for growth, and as these companies grow, the value of the fund’s holdings also increases.
Q: What are the risks of investing in small-cap mutual funds?
A: Small-cap companies are generally considered high-risk investments. These companies have a higher chance of failing or going bankrupt than large-cap companies. As a result, small-cap mutual funds are considered riskier than large-cap mutual funds.
Q: What are the top 10 small-cap mutual funds?
A: The top 10 small-cap mutual funds to consider in 2023 are SBI Small Cap Fund, HDFC Small Cap Fund, Nippon India Small Cap Fund, Kotak Small Cap Fund, Aditya Birla Sun Life Small Cap Fund, Franklin India Smaller Companies Fund, DSP Small Cap Fund, Axis Small Cap Fund, IDFC Small Cap Fund, and Sundaram Small Cap Fund.
Q: How should I choose a small-cap mutual fund to invest in?
A: When choosing a small-cap mutual fund, investors should consider factors such as the fund’s historical performance, expense ratio, the fund manager’s experience, the size of the fund, and the fund’s investment philosophy.
Q: Can I invest in small-cap mutual funds through a systematic investment plan (SIP)?
A: Yes, investors can invest in small-cap mutual funds through a systematic investment plan (SIP). SIPs allow investors to invest a fixed amount of money at regular intervals, such as monthly or quarterly.
Q: What is the minimum investment amount for small-cap mutual funds?
A: The minimum investment amount for small-cap mutual funds varies from fund to fund. Generally, the minimum investment amount for small-cap mutual funds is Rs. 1,000-5,000.
Q: Is it safe to invest in small-cap mutual funds?
A: No investment is entirely safe, and small-cap mutual funds are considered riskier than large-cap mutual funds. However, investing in small-cap mutual funds can be a good option for investors looking for higher returns and are willing to take on higher risks. Investors should consult a financial advisor before investing in any mutual fund.
