As the number of investors is increasing, every investor is looking for a ‘low-risk high profit’ share or funds. That’s where the small-cap fund enters. Even low investments can serve big profits in a shorter span. The top six small-cap mutual funds, namely Nippon India, SBI, Quant, ICICI Prudential, and HDFC have been conveying a good return on Investment for the past three years.
Mutual funds investment work as a reliable passive income to some extent
Investing is the new trend. Not only the millennials and adults, but the youth of today are also considering investing as a major ‘passive income’ source. The number of investors is growing constantly and people are breaking the stupid belief of considering investing as gambling.
The future of stocks and funds will always remain unpredictable and never be certain. Uncertainty is the nature of shares and it is a fact. There are various shares to select from, but the concept of funds made investing easier for those who have little knowledge about the market. These funds-based companies invest on behalf of investors by studying the market and taking revenue off the profit gained.
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When talking about funds, India’s mutual funds are a trust that collects money from investors and then invests the money into different funds as advised by professionals. The rise and hindrance of funds are also uncertain but somewhere it assures the investors of a profit. The profit might be little based on the market but the probability of loss is comparatively lesser. Mutual funds offer different kinds of funds including money market funds, bond funds, stock funds, and target date funds.
Nowadays, small-cap mutual funds are gaining popularity. Small-cap funds are invested in companies that fall below the top 250 companies. The reason is that these companies can be fluctuated by market easily and researched investment can lead to bigger profits, although the risk is comparatively higher
The returns by the top six small-cap mutual funds over the past three years
The top six mutual funds are in the limelight of the market as they have shown outstanding growth recently. Nippon India Small cap has shown a three-year return of around 40.29%. The quant small cap fund with a 60% return in three years.
SBI small-cap fund returned 32.19% ROI. Such figures can not be a mere coincidence, as these funds get popular, a major investment corpus is put in them which in turn is a win-win situation for the investors and the company, hence its easy fluctuation is the factor of the growth of small-cap mutual funds. However, investors must study at his/her level since these funds are also as easy to fall as they are to rise.
