Given over 66% SIP returns in 3 years, an outperforming benchmark, this small cap fund is good for SIP

Tata Small Cap Fund – Direct Plan-Growth

As mentioned, this is a small cap fund launched 3 years ago on November 12, 2018 by the Tata Mutual Fund. The fund is a medium-sized fund in its category. The size of assets under management (AUM) is 2092.05 crore. The net asset value (NAV) recently declared on May 20, 2022 is Rs 21.7813. It has an expense ratio of 0.47%, which is lower than its category average expense ratio of 0.76%. It is currently managed by Chandraprakash Padiyar.

It is an open-ended equity mutual fund. It is a high risk investment fund. The fund is rated 2 stars by CRISIL and 4 stars by Value Research. The fund’s benchmark is NIFTY Smallcap 250 TRI. This fund aims to provide long-term capital appreciation by investing primarily in equity and equity-related instruments of small capitalization companies, as it is a small capitalization equity fund.

To start investing in this fund, the minimum amount required is Rs 5,000 and Rs 1,000 for additional investment. Whereas, for SIP, it is Rs 150. There is no lock-up period in this fund. It charges 1% redemption for shares exceeding 12% of the investment within 365 days of investment.

Absolute and annualized returns

Absolute and annualized returns

Flat-rate returns on investment

Since inception, it has generated average annual returns of 24.75%.

Mandate Absolute returns Annualized returns
1 year 21.34% 21.34%
2 years 161.61% 61.74%
3 years 108.79% 27.78%
Since the creation 117.81% 24.75%

SIP Returns

Mandate Absolute returns Annualized returns
1 year 1.90% 3.56%
2 years 42.89% 38.66%
3 years 66.70% 36.20%
Wallet

Wallet

The fund is 88.24% invested in stocks, with 1.5% in mid-cap stocks and 77.38% in small-cap stocks. The fund invests the majority of its money in the services, chemicals, capital goods, materials and financials sectors. However, the fund took less exposure to the services and chemicals sectors compared to other funds in the category. The fund’s main holdings are in Allcargo Logistics Ltd., Greenply Industries Ltd., Redington India Ltd., Krsnaa Diagnostics Ltd. and BASF India Ltd.

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