Best Small Cap Mutual Fund| Reliance Small Cap Fund
At the onset, I would like to make it very clear that I am neither directly nor indirectly associated with any institution, company, AMC or an agent of Mutual Fund.I am also not advocating any product or fund of any particular Asset Management Company.The views shared in this blog are completely of my own and others may not agree with me.Being a long time investor and from my own experience today I have decided to write this blog on Best Small Cap Mutual Fund| Reliance Small Cap Fund.Reliance Small Cap Fund has remained on the top of my priority for a very long time.
Reliance Small Cap Fund
Reliance Small Cap FundAs the name itself suggests that this fund is of the small cap category, this fund contains moderately high risk for investment.A fund will be termed as a small cap if its investment exceeds 65% of total assets in equity and equity related instruments of small cap companies.
Objective of this Fund: The primary investment objective of this fund is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies. The secondary objective of this scheme is to generate a consistent return by investing in debts and money market instruments.
Fund Information:
This fund has come into operation on 16.09.2010. Currently, Mr. Samir Rachh and Mr. Dhurmil Shah are managing this fund.
Fund Performance
| Year | CAGR(%) |
| 1 | 25.53 |
| 2 | 34.4 |
| 3 | 21.63 |
| 5 | 35.91 |
| Since inception | 21.49 |
From the above table, it is evident that this fund has really delivered a superlative return since its inception and even for last five years as well. This fund is an established fund in the category of small cap group. Though I would like to reiterate once again that past return does not guarantee that this fund would perform same in the future as well. It’s just an indication of fund’s previous performance and what the fund is really capable of.
Small cap fund basically invests in rising small cap companies which have lots of potentials to hit the growth target and thus has the tendency to beat your expectation to a great extent. But at the same time, it is very much volatile too. During the downturn period, it can bring your investment value much lower than your principal value. Those, who can bear this pain, are the real winner in the long run. This fund is not suitable at all for risk-averse investors. Those who can bear the hardship of volatility and have necessary patience, Best Small Cap Mutual Fund| Reliance Small Cap Fund is the perfect choice for them. As I mentioned earlier, I am fond of this fund very much for its characteristics and the ability to fight back and beat the standards.
Now, let’s see the fund’s actual performance in tabular form.
| Investment Period | Apr 27, 2012 to Apr 27, 2018 |
| No. of Investments | 73 |
| Total Amount Invested | ₹146,000.00 |
| Total Units Purchased | 8,407.31 |
| Investment Value as on Apr 27, 2018 | ₹391,539.12 |
| Latest NAV | ₹46.57130(as on 27.04.18) |
As you can see from the above table that this fund has delivered an XIRR or CAGR of 33.29%, which is really very eye-catching.In just a span of 6 years your investment amount of 146000/- has reached 2.68 times to 391539/-.This has really helped those investors with a long term approach to build a substantial corpus.Therefore, I would recommend unlike other experts to invest 20% to 25% of your portfolio in this fund if you have an investment horizon of 10 years or more.Also, keep in mind that when the market does not perform well, small cap mutual fund too would not perform well and might erode your capital as well. But dont need to get panicked for long term investors.
From the interactive table below you can easily find the NAV on different dates during last 6 years and number of units acquired by investing ₹2000 monthly.Total units acquired is 8407.31 and the market value of investment as on 27.04.2018 comes to ₹3,91,539/-
Fund Portfolio
| Top 10 Holdings of this Fund | ||
| Equity | Value (₹ cr) |
Holding (%) |
| Navin Fluorine | 149.77 | 2.69 |
| Deepak Nitrite | 130.29 | 2.34 |
| Cyient | 119.15 | 2.14 |
| Zydus Wellness | 116.92 | 2.1 |
| VIP Industries | 116.37 | 2.09 |
| Tejas Networks | 115.81 | 2.08 |
| Kalpataru Power | 104.67 | 1.88 |
| RBL Bank | 99.66 | 1.79 |
| Seya Industries Limited | 98.55 | 1.77 |
| Vindhya Telelink | 94.65 | 1.70 |
Reliance Small Cap Fund Top 10 holdings
Reliance Small Cap Fund Industry wise Allocation
| Industry | (%) Allocation |
| Consumer Non Durables | 9.77 |
| Industrial Capital Goods | 8.54 |
| Consumer Durables | 7.74 |
| Chemicals | 6.89 |
| Textile Products | 5.85 |
| Industrial Products | 5.51 |
| Banks | 5.32 |
|
Telecom Equipment & Accessories
|
5.26 |
| Miscellaneous | 4.88 |
| Software | 4.46 |
Reliance Small Cap Fund Industry wise Allocation
Final Word on Best Small Cap Mutual Fund| Reliance Small Cap Fund
I hope today I have done enough justice to this topic on Best Small Cap Mutual Fund| Reliance Small Cap Fund. Also, you can go through my previous related topic on Best Mutual Fund Investment for 2018.
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