Indian stock market is going through a period of ups and downs these days. Nifty and Sensex are trading below their record levels. Recently, correction has been seen in midcap and smallcap stocks. The reason for this is being considered as profit booking, lack of liquidity and high valuation. However, experts say that the growth story of mid and small cap companies is still intact.
SIP investors got the benefit
To avoid market volatility, SIP ie Systematic Investment Plan is considered to be the safest and intelligent way. Investors especially by investing longer in good mutual funds provide better returns to investors. In this report, we are telling about 5 such mutual funds who have given great returns in the last 10 years.
Nippon India Small Cap Fund: Top with strong growth
Nippon India Small Cap Fund was launched in September 2010 and has given an average annual growth (CAGR) of 23.52 per cent in the last 10 years. This fund invests in small but growth potential businesses. Its specialty is that after the fall, it recovers rapidly. After Kovid and in 2023 it gave great performance.
Top Stocks: HDFC Bank, MCX, Dixon Technologies
Main Sector: Capital Goods (11.9 per cent), Healthcare (8.2 per cent), Chemicals (7.7 per cent)
Fund Size: Rs 58,028 crore
SBI Small Cap Fund: Fund with reliable and stable returns
SBI Small Cap Fund was started in September 2009 and it has given 22.61 percent CAGR return in 10 years. This fund invests in quality companies and scalable business models. Its strategy is balanced, in which the risk is low and the returns are stable.
Top Stocks: SBFC Finance, DOMS Industries, Kims
Main Sector: Finance (8 percent), Capital Goods (7.5 %), Chemicals (7.4 percent)
Fund Size: Rs 31,790 crore
Motilal Oswal Midcap Fund: Quality focus in midcap
Motilal Oswal Midcap Fund, launched in February 2014 and has given 21.17 percent CAGR in 10 years. This fund runs on Motilal Oswal’s QGLP Framework (Quality, Growth, Longvity, Price), which emphasizes the quality companies.
Main Sector: IT (25.6 percent), Jewelery (8.1 percent), Electricals (7.9 percent)
Fund Size: Rs 27,780 crore
HSBC Small Cap Fund: Short Name, Big Performance
Earlier this fund was known as L & amp; t emerging businesses Fund, but in 2022 HSBC Asset Management acquired it and the name was changed to HSBC Small CAP Fund. This fund has given 21.16 percent CAGR return in 10 years.
Top Stocks: Kpr Mill, Neuland Labs, Aditya Birla Real Estate
Main Sector: Finance (11.4 per cent), Healthcare (8 per cent), Capital Goods (7.6 per cent)
Fund Size: Rs 14,737 crore
Axis Small Cap Fund: Low Risk, High Quality Approach
Axis Small Cap Fund is known for investing in quality companies. This fund is also stable in market volatility, as it invests money in companies with strong balance sheets and good cash flows. It has given 20.74 percent CAGR return in 10 years.
Top Stocks: Kims, Cholamandalam Finance, Blue Star
Main Sector: Healthcare (11.3 per cent), Finance (10.9 per cent), IT (6.5 per cent)
Fund Size: Rs 23,318 crore
Research necessary before investing
If you are also thinking of investing in mutual funds, then you can include the funds mentioned above in your research list. Keep in mind that there is a risk in investment, so it is very important to seek advice from experts and set your investment goal. Investing in the long term through SIP can become a way for stable and effective returns.
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