10 May 2022
Investors generally consider equities as a risky asset class. And this often makes them stick to large-cap companies within this asset class as they are seen less volatile compared to their mid- or small-cap peers.
While small-caps are generally considered riskier than large-caps, they also come with the potential of delivering returns over the long-term.
Let us consider Kotak Smallcap Fund.
An SIP in this fund has given close to 28% CAGR^ over the last five years.
Aimed at identifying potential leaders in their early stages and generating capital growth over the long term, the Kotak Smallcap Fund invests in companies which are categorised as small-cap based on their market capitalisation*.
Over the last three years, an SIP in this fund would have yielded returns of close to 44%, also giving an alpha of nearly 6% over its benchmark, Nifty Smallcap 250 (TRI)(Tier1)**.
This fund has the maximum investments in companies in the consumer goods, industrial manufacturing and chemicals space#.
Kotak Smallcap Fund is managed by Mr. Pankaj Tibrewal. View the funds managed by him here.
Past performance may or may not be sustained in the future.
^Data is for the Kotak Smallcap Fund - Regular Plan (Growth Option) and as of 29th April 2022. Please refer above for complete performance details.
*Small-cap companies would be those companies as defined under SEBI circular no. SEBI/HO/IM/DF3/CIR/P/2017/114 dated October 6, 2017, and may be amended by SEBI from time to time. Currently, the small-cap companies are 251st onwards in terms of full market capitalisation. The list of stocks would be as per the list published by AMFI in accordance with the said circular and updated on half-yearly basis.
**Refer above for complete performance related disclosures.
#Details as on April 29, 2022. Source: Factsheet. The same is for information only and should not be construed as any kind of recommendation.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.