Nippon India Small Cap Fund Growth

The Nippon India Small Cap Mutual Fund is an investment product offered by one of the most renowned brands in India. The fund predominantly invests in equities of small-cap companies where they can stimulate their returns. The Nippon India Small Cap fund allows investors to accentuate their savings from the share market. It is imperative that one must meticulously research before investing because any investment is subject to market risks.

About Nippon India Small Cap Fund – Growth

The Nippon India Small Cap Fund exclusively invests in equities from small cap companies with a market capitalization ranging anywhere between Rs 250 Crores to Rs 5,000 crores. The fund aims to stimulate the investment corpus of its investors by parking the assets in a diversified portfolio of small-cap companies.

Key Parameters

The Nippon India Small Cap Mutual Fund – Growth has a minimum investment amount of Rs. 5000, and subsequent investments can be made in multiples of Rs.1. The fund has an expense ratio of 0.86%, which is the cost levied on investors for managing the fund. The minimum lock-in period for the fund is 3 years; meaning investors cannot redeem their investments before this period.

Taxation

Investing in Nippon India Small Cap Fund-Growth also offers tax benefits to its investors. Investments made in this scheme are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Investors can claim a tax deduction of up to Rs.1.5 lakh for their investment in this scheme.

Holdings

The fund’s portfolio consists of small-cap stocks across various sectors such as auto components and equipment, private sector banks, public sector banks, software and consulting healthcare, financials, industrials, consumer goods, etc. The top 10 holdings of the fund are as follows:

• Tube Investment of India
• HDFC Bank
• KPI Technologies
• Bank of Baroda
• NIIT Limited
• Bajaj Electricals Limited
• Larsen and Toubro Ltd.
• Zydus Wellness
• Balrampur Chinni Mills
• Fine Organic Industries

Returns

The fund has generated impressive returns ever since its inception. The annualized returns for the last 5 years have been 20.26%, and for the last 3 years, have been 17.25%. Note that returns on mutual funds are subject to market risks, and past performance may not be a reliable indicator of future returns.

The Investment Objective of Nippon India Small Cap Fund – Growth

The investment objective of the Nippon India Small-Cap Mutual Fund – Growth is to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related securities of small-cap companies. The fund aims to identify high-growth potential companies and invest in them early on so as to capture the potential upside.

Minimum Investment and Lock-in Period

The minimum lock-in period for the Nippon India Small-Cap Mutual Fund – Growth is three years. This means that investors cannot redeem their investments before this period. However, investors can still switch their investments to other mutual funds offered by Nippon India Mutual Fund during this period.

Nippon India Small Cap Fund – Information

Nippon India Small-Cap Mutual Fund – Growth is an equity mutual fund scheme that invests in small-cap companies. The scheme offers tax benefits, has a minimum investment amount of Rs. 5000, and a minimum lock-in period of three years. The fund has generated impressive returns in the past, but it is essential to note that past performance is not an accurate indicator of future returns. As with any investment, investors should consult with their financial advisor before investing in this scheme.