5 Must-Buy Small-Cap mutual fund for Long-Term Investors in India

1. 5 Must-Buy Small-Cap mutual fund for Long-Term Investors in India Great things come in small packages! Especially, when it comes to equity fund returns. Small-cap funds have the potential to grow at an accelerated pace and generate market-beating returns. Though they are not for everyone. You need to have the patience to wait it out and the courage to withstand the heightened market volatility associated with high equity fund returns. But then, fortune favours the brave! Here are the top performers of small cap funds, which can add many additional zeroes to your bank balance. SBI Small CapFund SBI Small Cap Fundranks 1st in the list of top performers of small cap funds. It has adopted a bottom-up approach and seeks to invest in high-quality growth stocks backed by reasonable valuation and strong management. The scheme has a stellar track record, outperforming the benchmark and category peers by a handsome margin, since its inception in September2009. This open-ended scheme invests in a well-diversified portfolio consisting predominantly (69.58%) of stocks of small-cap companies and some high-quality mid-caps and large-caps (15.39% and 4.73% respectively). In terms of sectoral breakdown, the top three industries (consumer goods, industrial manufacturing and financial services) constitute over 50% of theportfolio. Key details about SBI Small CapFund: 2. Axis Small CapFund The youngest contender in this list (launched in November 2013), Axis Small Cap Fundhas proved its mettle in a short span of time. The fund focusses on high-conviction stocks from the small-cap category and strives to balance equity fund risk and return by containing mistakes and tactfully navigating through volatile market movements. The portfolio is well-diversified and the top three sectors include finance, capital goods and consumergoods.

2. Key details about Axis Small CapFund: 3. Nippon India Small CapFund: Launched in September 2010, this small cap fund aims to generate superior risk-adjusted returns through capitalizing on the potential of smaller capitalization stocks – high growth prospects, better equity fund returns along with comparatively lower valuation. The scheme seeks to identify growing businesses with reasonable size, robust management and rational valuation. In terms of industry allocation, chemicals, consumer non-durables and finance are the top threesectors. (The fund was earlier known as Reliance Small CapFund) Key details about Nippon India Small CapFund: 4. HDFC Small CapFund The portfolio of HDFC Small Cap Fundconsists of small-cap stocks which have solid growth prospects, sound financial capacity, sustainable business model and acceptable valuation. In addition to its 68.8% investment in small-caps, the fund also invests 15.5% and 3.6% of its corpus in mid-caps and large-caps respectively. Launched in 2008, the targeted allocation approach of the fund has helped it to perform consistently well across multiple timeframes (1-year,3-years and5-years) Key details about HDFC Small CapFund: Parameters

3. 5. Kotak Small CapFund Kotak Small Cap Fundfollows the mantra of spotting the talent young. It invests in chosen and diverse small-sized companies that have the potential to grow steadily and generate superior returns in the long run. The current market-cap segmentation of Kotak Small Cap Fund includes 67.8% small-caps, 27.8% mid-caps and 4.3% large-cap funds. Consumer goods, industrial manufacturing, financial services and chemicals are the top four sectors and constitute more than half of theportfolio. Key details about Kotak Small CapFund FinalWords If you have the appetite to stomach the high equity fund risk, small-caps can accelerate the growth rate of your portfolio. Especially now that you know the top performers of small cap fund, your job has been made easier. As they say, well begun is halfdone!