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What are small cap funds
Small Caps - The Funds Which Offer Tremendous Financial Growth

The small cap funds are those which invest in the companies fall at 251st to 500th position of the full market capitalisation. These funds are ideal for the investors with an appetite of tolerating high risk. The small cap mutual funds offer tremendous growth to the investors who have a long-term investment horizon. They aim at generating capital by investing in equity and equity-related securities of small-cap companies.

Recommended Funds  
Scheme Name Category Nav Return(%) Rating Analysis Amount Action
Small Cap 20.8

Small Cap 19.48

Small Cap 19.73

SBI Small Cap Fund (G) Earlier known as SBI Small&Midcap Fund (G)
Small Cap 19.5

Small Cap 12.24

Aditya Birla Sun Life Small Cap Fund (G) Earlier known as Aditya Birla Sun Life Small&Midcap Fund (G)
Small Cap 14.37

Kotak Small Cap Fund (G) Earlier known as Kotak Mid-Cap Fund (G)
Small Cap 11.32

DSP Small Cap Fund (G) Earlier known as DSP BlackRock Micro Cap Fund (G)
Small Cap 11.1

ICICI Prudential SmallCap Fund (G) Earlier known as ICICI Prudential Indo Asia Equity Fund (G)
Small Cap 6.73

Sundaram Small Cap Fund (G) Earlier known as Sundaram S.M.I.L.E Fund - Regular Plan (G)
Small Cap 6.61

Small Cap N/A

Small Cap Funds: A Reservoir of Growth Opportunities

The meaning of small caps can be inferred as those firms which have entered the market recently and have the potential to grow. These businesses are the start-ups which commence with very little paid-up capital but have immense growth capabilities for growing. The clients who invest online in these schemes have greater opportunities for getting higher returns as the companies are yet to expand their business. The small cap funds target towards investing in enterprises that have just entered the market and are gradually establishing themselves and earning a name for themselves. 

The investors are always in a dilemma regarding the investment strategy when it comes to the money required for investment. As the Small-Cap companies have a very less amount of capital employed and their share price is also relatively low. Thus, an investor can get more units of a this  fund by investing less amount. Hence, it is a very crucial point of taking the investment decision. It is important to note that the investment in best small cap funds is made to (or “intending to”) generate maximum profit and as small-cap companies have chances to excel the client’s money can harness the success along with the company. The tenure of investment also stimulates the growth at a massive scale. As the growth of a child takes place over the years same way the growth of investment also happens over a prolonged period. The clients must not be in a hurry to get the returns. These companies are the growing businesses, and they need sufficient time to establish themselves against the fluctuating market conditions. Thus, the client who can wait patiently for the returns to occur eventually will be the winner at the end.

Small Cap Mutual Funds : Features of the Scheme

The small cap fund have various features which make it a unique fund. It is best suited for the clients who have less amount to invest in mutual funds. There are below-mentioned features of this fund:

  • Enormous growth capacity:- Every successful company like Microsoft, Infosys, TCS, L&T, etc., have started a small-cap company. And now one can see how these companies have captured the market and growing regarding capital employed and some clients as well. Small caps allow the first time investors to invest with some amount and get to know the proper working of equity-based mutual funds. By investing in small-cap mutual funds, the clients can make the best possible use of their money if they stay invested for a longer duration. Even a small investment in the mutual fund optimized content schemes is capable of turning out to be huge regarding the growth potential. The reason behind it is that a large-cap company has almost attained a level where it has tapped all the potential sources of growth. But, for a small-cap company the growth potential are way beyond the limit. It can diversify, make the best use of its underlying resources in a better and efficient manner.
  • High risk-prone:- Despite the fact that investing in small cap mutual funds have a very high growth potential at the same time they also demonstrate a higher risk profile. The clients have to understand they are putting their money in intensive risk schemes. But, as it is always said higher the risk greater is the profit from it. 
  • Patience is the key to success:- Have you ever seen a seed which can grow into a tree within a single night? The answer would probably be no. Because growth is a long-term and slow process. The clients need to have patience and gradually see their funds grow. A small-cap company will turn into a large one. But, the returns will be copious over the period.
  • Diversification:- This company’s shares are very low priced and hence even with a less amount, the fund manager will be able to invest in multiple companies at the same time and reduce the risk factor involved in deploying money through small cap fund.

Thus, one can invest online in small mutual funds through SIP in Indiaand make the best possible use of their money with greater diversification and increased returns over a long time spell. The clients have to remain patient and make the correct move at the precise time. My SIP  Online brings to you a bag of these funds which will not only help the individual investors to create money in a better way and can calculate the return using sip calculator.

What our clients say...
  • They suggested me to invest online in small cap funds as I wanted to attain extreme growth. When I started my investment journey with MySIPonline, I had a few information about the various fundamentals of schemes, investing, risk, volatility, etc., as all these were only words for me. But, the support team of MySIPonline helped me to choose the most suitable scheme. Today, I feel that, it was a correct suggestion as the fund is showing amazing growth. Thanks a lot for the good advice!!!

    Vidushi Pamecha Mumbai, India
  • Indeed the best online investment service provider! Excellent efforts! I get connected with MySIPonline a year back when I invested in small cap mutual funds through it. I had no idea that the journey would be such an amazing experience. Bravo!! Good job guys!! I guess this is the best portal for investing in the best mutual funds as no other portal provides such efficient services. Keep it up, guys!!!

    Shalini Roy Applications Manager
  • I have recently joined my job and want to start investing. Due to the constraint of time owing to my job schedule I registered on My SIP online to plan my finances easily. The expert team guided me to invest in the small cap mutual funds so that I would first get to know the process of investment and then graduate to mid caps and large cap funds. My investments are secured and I am able to get better returns.

    Neil Khanna Animator
  • When I learned about mutual funds, I was impressed by the strategy and idea of small-cap funds as they seemed to fulfil my financial goal. I invested in the small-cap funds for 7 years through MySIPonline, and the returns were above my expectation. I never knew I could multiply my investment exponentially through mutual funds. I will always recommend small-cap funds to the investors who can take high risk.

    Pratap Singh Bharatpur, Rajasthan