After sharp correction in mid and small cap in the past 2 years, Small Cap Fund can be attractive investment opportunity for the next years. Risk and reward is in favour of small caps because small caps valuations have fallen sharply from the peak touched in January 2018.
Investment Reason 1:
Following chart clearly shows, in year 2003, 2008 & 2013 were quite attractive levels for small cap. And now in 2020, the opportunity to invest in Small Cap is again glaring at you.
Investment Reason 2:
Below chart also show you Large, Mid & Small caps falling levels in past two years.
Investment Reason 3:
Below Four factors are favouring to invest in Small cap Funds.
As small cap is very risky investment, so very important to right time enter and right time exit. Ideally it should be 10 – 15% in your portfolio if your risk taking ability. Normally small cap schemes have ability to generate higher return so if you take minor investment exposure it will boost your overall portfolio return. As per our best knowledge study following are the good small cap schemes where you can start invest from current level.
- ITI Small Cap Fund.
- AXIS Small Cap Fund.
- Invesco Small Cap Fund.
- HDFC Small Cap Fund.
- SBI Small Cap Fund.