5 articles
Small cap funds, targeting companies ranked 251st and below by market cap per SEBI, are suitable for investors with high risk tolerance. These funds typically exhibit higher volatility, with standard deviations often exceeding category averages, but offer substantial growth potential over a 7-10 year horizon.
Comparing Quant Small Cap Fund and Nippon India Small Cap Fund reveals distinct strategies and risk profiles. For example, direct plans typically offer 0.50-1.10% lower TER, impacting long-term corpus significantly.
Evaluating the best small cap funds in India for 2026 requires moving beyond raw returns to risk-adjusted metrics like Sharpe Ratio and expense efficiency. This analysis reveals how direct plans can save 0.50-1.10% in TER annually, significantly impacting long-term wealth.
Understanding risk in small cap mutual funds in India requires more than just performance numbers. Per SEBI's categorisation circular SEBI/HO/IMD/DF3/CIR/P/2017/114, these funds invest in companies ranked 251st onwards by market cap, leading to higher volatility and unique liquidity challenges.
SEBI defines Large Caps as top 100 companies, Mid Caps 101-250, and Small Caps 251+ by market cap. Understand their risk-return profiles to pick funds for 2026.