Quick Answer: Is It Wise To Invest In Small Cap Fund?

Is SBI Small Cap Fund a good investment?

SBI Small Cap Fund is the top performing mutual fund scheme in the small cap category.

The small cap mutual fund category on an average has given 4.28% returns for a 5-year SIP and 11.13% for a 10-year SIP..

Which is better small cap or mid cap?

Mid-cap stocks are slightly more volatile than large-cap stocks and carry somewhat more risk. Small-cap companies are highly volatile and their prices can swing considerably, which increases the risk for investors.

Will small cap funds recover?

One-year returns of mid cap and small cap funds have recovered from being in double-digit negative till a few months ago to 9.33% and 8.48% respectively. … Mutual fund analysts believe the segments now provide a good investment opportunity.

Which SIP gives highest return?

6. Best SIP Equity Funds India 2021Fund Name5-Year ReturnsLinkMirae Asset Large Cap Fund Regular Growth8.37%Invest NowAxis Blue Chip Fund8.81%Invest NowICICI Prudential Bluechip Fund Growth6.07%Invest NowSBI Bluechip Fund Regular Growth5.29%Invest Now1 more row•5 days ago

Which is the best small cap fund?

Top 10 Small Cap Mutual FundsFund NameCategory1Y ReturnsSBI Small Cap FundEquity30.8%Nippon India Small Cap FundEquity24.8%Edelweiss Small Cap FundEquity32.4%Canara Robeco Small Cap FundEquity37.0%12 more rows

When should you invest in mid cap funds?

Mid cap funds can benefit from investment opportunity in such quality mid cap stocks where price correction has been more than value correction. So if you can bear short-term volatility in performance and have an investment horizon of at least 5 years, this is an apt time to add mid cap funds to your portfolio.

Why small cap funds are falling?

A host of factors such as overvaluation of stocks and lower than expected earnings of firms in the midcap and small cap segment has led to a fall in the broader indices. … Of course, barring the large cap stocks, correction has been overdone by the market in small and mid-cap stocks for past 7 to 8 quarters.

Is it good time to invest in small cap funds?

Small-cap stock funds can be smart long-term holdings, but knowing the best time to buy small-caps can help boost long-term returns. There are some smart ways for active investors to adjust exposure to small-cap stock funds to potentially enhance long-term performance, however.

Should I invest in mid cap funds?

Generally, financial experts advise first-time investors and beginners to avoid mid-cap funds. Under general circumstances, individuals who possess a high-risk tolerance and are willing to invest their money in funds for at least 5-7 years may consider investing in this category of funds.

Which SIP is best for 5 years?

Best SIP Plans for 5 Years in Equity FundsAxis Bluechip Fund Monthly SIP Plan. This is an open-ended equity scheme with a track record of outperformance. … ICICI Prudential Blue chip Fund. … SBI Blue chip Fund. … Mirae Asset Large Cap Fund. … SBI Multicap Fund.

Should I invest in large cap or mid cap?

Individuals with a low risk appetite and long term investment goal can opt to invest in large cap mutual funds. … However, investors with enough knowledge and experience of market projections can invest in Mid cap Mutual funds. These funds are suitable for investors with long term financial goals and high risk tolerance.

Which is the best mid cap fund?

Table of Best Midcap Funds for 2021:Fund NameReturns (%)DSP Midcap Fund27.9314.81Invesco India Midcap Fund30.6913.76Tata Mid Cap Growth Fund29.7412.63Nippon India Growth Fund29.4613.5610 more rows•Jan 7, 2021

Which fund is best?

Here is the list of top 10 schemes:ICICI Prudential Equity & Debt Fund.Mirae Asset Hybrid Equity Fund.Axis Bluechip Fund.ICICI Prudential Bluechip Fund.L&T Midcap Fund.DSP Midcap Fund.L&T Emerging Businesses Fund.HDFC Small Cap Fund.More items…•