High Yield Potential

Small Cap Mutual Funds

Maximize your wealth compounding speed. Target high-growth emerging companies ranked 251 and below for aggressive long-term returns.

Aggressive Wealth Creation

Target emerging small enterprises exhibiting fast capital scale-up potentials over active economic growth periods.

High Return Volatility

Fulfill long-term aggressive goals by capturing exponential gains despite temporary bear market drawdowns.

7+ Year Horizon

Best suited for disciplined investors aiming to hold assets through market cycles to capture compounded returns.

Rank 251 & Below

High Alpha Growth

Under SEBI regulations, small cap funds must invest at least 65% of their assets in companies ranked 251st and below in market capitalization. These emerging firms can yield massive alpha when they scale up operations.

✔ Historical returns average: 18-22% p.a.
✔ High potential for multibagger growth
✔ Automated monthly SIP execution online

Asset Allocation

Why Invest in Small Cap Funds?

Small cap schemes carry high risk but represent the ultimate compounding tools for long-term aggressive portfolios:

Emerging Industry Leaders: Small cap firms often operate in niche segments, technology areas, or upcoming services with zero large cap competition.
Exponential Valuation Scaling: An emerging firm moving from micro cap to mid cap size can multiply its share value by 5x to 10x over key growth phases.
Disciplined SIP Buffer: Buying via monthly SIPs averages out costs during market drops, neutralizing short-term downside risks.

FAQs

Frequently Asked Questions

Find immediate answers regarding small cap mutual funds.

What are small cap mutual funds?

Small cap mutual funds are equity schemes that mandate investing at least 65% of their total assets in emerging companies ranked 251st and below by market capitalization.

What are the risks of investing in small cap funds?

Small cap companies have limited capital reserves and can face liquidity or operational stress during recessions. Consequently, small cap funds exhibit high price volatility and can drop heavily (up to 30-40%) during bear markets.

What is the recommended holding period for small cap funds?

Due to the high volatility and business scaling cycles of small enterprises, investors should maintain a long-term investment horizon of at least 7 to 10 years when investing in small cap schemes.