If this happens to an investor, then it is like a lottery of 10 lakhs for 10 rupees. But we are not talking about lottery here. Here, the matter is purely pure business and pure profits.
Small fund for investment but big profit. What a good thing If this happens to an investor, then it is like a lottery of 10 lakhs for 10 rupees. But we are not talking about lottery here. Here, the matter is purely pure business and pure profits. That too the matter of earning more profits by buying a small fund for less money.
Divide the fund in the form of small cap and large cap, there is a very small difference between the two. This means that in small money you can earn as much profit in small cap as you will earn by putting more money in large cap. If you look at the returns of the last one year of the Nifty, small-cap funds have seen an increase of up to 100%.
There are many small cap funds which have been giving good returns for the last several years. Talking about DSP small cap, it has given 11.58% in 3 years, 15.13% in 5 years, 21.17% in 7 years and 19.39% in 10 years. There are many small funds where good returns are being seen.
DSP Small Cap
If you look at the 10-year record of DSP Small Cap, the returns from 2.69 percent in a week to 489.43 percent in 10 years have been received. This return is on the investment of 10 thousand rupees. First of all, the investment of 10 years ago. On 20 May 2011, an investment of Rs 10 thousand was made in the DSP Small Cap, which stands at Rs 58943 as on date. This jump in returns is 489.43 percent. Similarly, a year ago, if you look at the figure of 20 May 2020, then an investment of 10 thousand rupees yielded a return of 21324 rupees. This return is 113.24 percent. Recently, according to the calculation of May 12, 2021, an investment of 10 thousand rupees has yielded 10,268 rupees and this return is 2.69 percent, which was seen in a week.
What are the strategies in Corona
So far everything is going well, but will the increase in return in small cap continue? Or Corona will be killed on this, as seen in other areas. Regarding this, Vinit Sambre, the fund manager of DSP Mutual Fund, says that it all depends on the company that holds the small cap. If that company has been giving the expected returns for the last few years, then there is definitely hope of getting it even further, but it is not according to the present. Right now the business has been affected due to Corona, a huge impact is being seen on people with money. In this situation, people who want to invest in small caps should not see any benefit in the short term. They can benefit in the long term.
Small cap investment increased in these companies
There are many big companies in which investment of small cap funds has increased. These companies include Finolex Industries, Swaraj Engine, Ferrous Metal, Kalyani Steel, Auto Ancillary, Superjit Engineering and Welspun Corporation. By investing 500 rupees in a small fund, you can make good money in long days. If you are planning to raise a large corpus (deposit capital) later, you can invest in a small cap fund. Talking about DSP Small Cap Fund, it was launched on 14 June 2007 as a mutual fund. Its fund size is 6,689 crore.
These small funds have an advantage
Apart from DSP, small funds include Axis Small Cap, SBI Small Cap, Kotak Small Cap, Nippon India Small Cap and HDFC Small Cap. It is not considered appropriate to invest money for short periods in any small cap. Small cap has the advantage only when invested in it for long term or long years. If you invest money for short days, then it can result in loss instead of profit. Experts say that one should always invest in small caps with a focus of 10 years.
Talking about small cap here, there are those funds which are companies which fall below the 250th position in the stock market. As per SEBI guidelines, smallcap mutual fund schemes are required to invest at least 65 per cent of their entire accumulated capital in small companies. The top 100 companies in the stock market are in the large cap segment. Below this, companies ranging from 101 to 250 come in midcap.
