Quick Answer: Is Small Cap Fund Good For Long Term Investment?

Which type of mutual fund is best for long term investment?

5 Best Mutual Funds for Long Term InvestmentsFund NameAUM (Crores)3 Year Returns (%)L&T Midcap FundRs.5,367-5.39HDFC Small Cap FundRs.6,835-8.75Tata Retirement Savings FundRs.1,0481.19Franklin India Smaller CompaniesRs.4,900-13.201 more row•Jul 5, 2020.

Is it better to invest in small cap or large cap?

The best reason to invest in small-cap stocks is their greater potential to deliver outsize returns than larger companies. … Small-cap stocks tend to have higher growth rates. Again, it’s easier for a smaller company to double its revenue, whereas mature companies tend to see slowing revenue growth.

Should I invest in small caps?

Investing in small-cap companies is an important element of your investment strategy. Smaller companies tend to have a greater chance of large growth, faster. For instance, a company with a market cap of $500 million is more likely to double in value than a company with a market cap of $500 billion.

Is LIC better than sip?

LIC, SIP and mutual funds – the bottom line Advise them to, first, aim for financial security by investing in a life insurance plan and then they can plan their investments. … If, however, they want to invest in mutual funds, SIPs are the best way to go about it.

How can I make 10 lakhs in 5 years?

To create a corpus of Rs 10 lakh in five years, with a monthly investment of Rs 11,000, you need to invest in those schemes that generate 17 per cent returns on a compounding basis. While historically, equity schemes have delivered 17 per cent returns over the last five years, it is safe to lower the expectations.

Is it right time to invest in small cap fund?

If you are ready to take some risk to optimise the returns on your portfolio, then you can choose to invest in small-cap funds. Investing a small portion of your portfolio in small-cap funds for a long-term is an excellent means of generating good returns.

What should you buy in a recession?

Investors typically flock to fixed-income investments (such as bonds) or dividend-yielding investments (such as dividend stocks) during recessions because they offer routine cash payments.

What is Blue Chip Fund?

A blue-chip mutual fund is the one that invests in blue-chip stocks or shares, i.e. in well-established companies with excellent overall financial performance. In this article, we will learn more about blue-chip funds, how they work and much more. Origin of Blue Chip.

Which is the best small cap mutual fund?

Top 10 Small Cap Mutual FundsFund NameCategory1Y ReturnsSBI Small Cap FundEquity28.7%Kotak Small Cap FundEquity31.8%Nippon India Small Cap FundEquity24.9%Edelweiss Small Cap FundEquity20.5%12 more rows

Is it good to invest in small cap funds for long term?

Financial Goals. Small-cap equity funds can be ideal for investors who may have long-term goals like planning for your children’s education, saving for your retirement, taking an exotic vacation with your family, paying off your medium-term debt, and so on.

Which SIP is best for 5 years?

Best SIP plans for 5 year investmentFund Name3-Year SIP Returns (%)5-Year SIP Returns (%)Kotak Emerging Equities Fund (Regular)6.54%9.73%INVESCO India Financial Services Fund (Regular)14.61%16.03%SBI Focused Equity Fund (Regular)12.40%12.94%Franklin Build India Fund (Regular)4.66%8.07%8 more rows•Jan 23, 2020

Which SIP is best for 20 years?

Best SIP Plans to invest in for 20 yearsHDFC growth and prudence fund. … Mirae Asset Bluechip Fund. … Franklin India Feeder. … SBI Small Cap Fund. … Motilal Oswal Equity Fund (long term) … HDFC Hybrid Equity Fund. … Aditya Birla Sun Life Fund. … ICICI Prudential fund.More items…•

Which mutual fund is best for 3 years?

UTI Equity Fund.Axis Bluechip Fund.Parag Parikh Long Term Equity Fund.Canara Robeco Bluechip Equity Fund.Canara Robeco Equity Diversified.Mirae Asset Emerging Bluechip Fund.BNP Paribas Large Cap Fund.DSP BlackRock Equity Fund.More items…•

Which SIP gives highest return?

6. Best SIP Equity Funds India 2020Fund Name5-Year ReturnsLinkMirae Asset Large Cap Fund Regular Growth8.37%Invest NowAxis Blue Chip Fund8.81%Invest NowICICI Prudential Bluechip Fund Growth6.07%Invest NowSBI Bluechip Fund Regular Growth5.29%Invest Now1 more row•Sep 10, 2020

Is SBI Small Cap Fund a good investment?

If it is not advisable to enter SBI Small Cap Fund at this point of time, please suggest a good small cap fund to invest. … One, small cap schemes are extremely risky and volatile. That is why these schemes are recommended to investors with a very-high risk appetite and ability to withstand volatility.

What are the top 5 mutual funds?

Top 5 Biggest Mutual FundsVanguard Total Stock Market Index Fund Admiral Shares (VTSAX)Fidelity 500 Index Fund (FXAIX)Vanguard Institutional Index Mutual Fund (VINIX)Fidelity Government Cash Reserves (FDRXX)Vanguard Federal Money Market Fund (VMFXX)

Which is the best small cap fund?

Table of Best Small Cap Funds for 2020:1 year.3 year.5 year.7 year.10 year. Axis Small Cap Fund. 22.40. 10.44. 14.32. 21.28. — SBI Small Cap Fund. 32.60. 5.00. 16.29. 27.21. 18.94. Nippon India Small Cap Fund. 29.95. 2.56. 12.51. 23.13. 17.28. Kotak Small Cap Fund. 34.80. 5.99. 13.03. 19.53. 13.67. HDFC Small Cap Fund. 18.25. 0.73. 10.94. 15.32.

Can I invest lumpsum in SBI Small Cap Fund?

​​SBI Small Cap Fund had stopped accepting lumpsum investments earlier from October 2015 to March 2020. SBI Small Cap Fund will not accept lumpsum investments after September 7. The fund house will only accept investments through SIPs of up to Rs 5,000 per individual.

Is it good to invest in large cap?

Large-cap stocks are shares of the largest U.S. companies, or those with market capitalizations of $10 billion or more. Large-caps are generally safer investments than their mid- and small-cap counterparts because the companies are more established, but their stocks may not offer the same potential for high returns.

Will small cap funds recover?

One-year returns of mid cap and small cap funds have recovered from being in double-digit negative till a few months ago to 9.33% and 8.48% respectively. … Mutual fund analysts believe the segments now provide a good investment opportunity.