It’s the Time to Take Benefit of Small and Mid-Cap Funds
Are you looking for the right time to make a right investment? Do you want to grow high with the rising economy? If yes, then read this blog to know how you can achieve that with small- & mid-cap funds.
The economy of India is growing at a rapid pace over seven percent as acknowledged by different international organisations. With the enhancing stride, it would take up various opportunities for the small and medium cap companies to flourish in the future. The experts have the view that the small and mid-cap corporates shall be empowered to grow extremely higher in a couple of years. With the growing entities, the funds of the investors which is put in their stocks shall also yield multibagger returns and help in achieving the desired growth.
It is believed by everyone that large-cap stocks are safe to play due to their better performance even in the downfall, and this is the reason investors find it safe to make investments in the large-cap funds. But this time, the situation is quite variant as per the changes in the market phenomenon. Over the past few years, equity mutual funds have offered excellent returns, and the mid- and small-cap funds benefited the investors in particular. They have delivered huge alpha over the set benchmark. Furthermore, over the past few years, mid-cap and small-cap funds have offered an average of 34.2% and 42% CAGR, respectively, compared to 17.7% by the large-cap funds.
This stellar performance has lead this fund to be the most flourishing one. This is the reason why it has been assumed by the experts that now is the right time to make an investment in the mid- and small-cap funds. So if you are an investor who is seeking investment for approximately three to five years and wants to earn tremendously higher returns, then you must opt for the schemes of these equity funds.
What Do You Need to Take Care of?
As per the World Bank latest statement, the Indian economy shall remain strong with around 7.6% GDP in 2016 and 7.7% in 2017. This has ensured that the economy shall be providing benefits to the citizens in the coming year as well and if you make the investment now, you would definitely earn the expected yields.
You just need to take care of the management of the funds which is of keen importance. In addition, you must make sure that the stocks in which you are investing the money through equity funds are sustainable to grow higher with the growing economy.
Ideally, a mid-cap exposure of 30-40% in the portfolio shall be a good choice. It would provide you with the benefits of growing economy. In addition, you should also add some fixed income instruments like liquid funds to your portfolio to play safe in the mutual fund industry and take the advantages of both the worlds.
So, if you need to take an informed decision now to grow high with the Indian economy, then you must buy the schemes of mid- and small-cap funds offered by various fund houses such as ICICI Prudential MF, SBI Mutual Funds, etc. To make an online purchase and get instant assistance by an expert, MySIPonline is the best platform. Get associated with us to experience the difference!
- This Independence Day, Let's Pledge for Freedom from Financial Worries1646 min read Aug 14, 2018
- Are Balanced Funds Better Than Balanced Advantage Funds?2984 min read Aug 02, 2018
- 7 Points to Ponder While Investing in Small Cap Funds5573 min read Jul 19, 2018