Investor Earned 60% return last year with these top 5 Small Cap Mid Cap Mutual Funds


Investing in stock is direct risk, as one has to track stock with various technical aspects but you can go for best Blue chip stocks for high returns in 2018.Investing in mutual fund is safe compared to stocks. Lets start the year 2018 with some wealth generation, and for the wealth generation Mutual Funds is one of the best investment option. Mutual funds can even surpass the return given by model stock portfolio of stock market experts. With the given list below you may be surprised to note that there are 5 mutual funds that have generated whopping 60% absolute return in last one year. If you could have invested any one of them you could have generated big corpus by now surpassing the regular bank FDs' returns. 

We'll take the example of the one of the top performer fund viz. SBI Small and Mid Cap Fund - Direct Plan (G)  – If one year back you had started investing Rs 1,000 every month in SBI Small and Mid Cap Fund-Direct Plan (G), you would have seen your investment growing multi-fold by now as SBI Small and Mid Cap Fund-Direct Plan (G) have given 80% return in last one year.

How to select best mutual fund for wealth creation ?

From above example, it can be clearly said that mutual fund is one of the best investment options for the wealth creation. However, it is very tough to identify a mutual fund that will help you in fulfilling your financial goals. You need to consider multiple factors while picking up a good mutual fund for the investment.

if you follow below steps to follow then you can be in position to select suitable mutual fund for your need.

Step 1 - You must Identify your investment objective, time horizon, as well as risk appetite to get returns from the mutual fund.
Step 2 – Once you identify the risk appetite select the category/nature of mutual fund viz. debt, equity or hybrid.
Step 3 – In the next step you can go for identification of category identify right scheme based on following factors

  • Past performance of scheme
  • Comparison with peer and benchmark
  • Scheme Size
  • Expense ratio
  • Performance during poor market scenario
  • Fund house reputation
  • Mutual fund rank

Top 5 Small-Mid Cap Mutual Fund details which delivered the whopping up-to 60% returns last year


1. SBI Small and Mid Cap Fund-Direct Plan (G)

  • AUM – Rs 943 Cr
  • 1 Year Return – 80%
  • Top Holding – West life Dev, Relaxo Footwear, Kirloskar India, Hawkins Cooker
SBI Small and Mid Cap Fund-Direct Plan (G) scheme seek to generate income and long-term capital appreciation by investing in a diversified portfolio of predominantly equity and equity-related securities small & midcap companies. Subscription to this fund is temporary suspended. This fund is managed by an experienced fund manager. The expense ratio of this fund is very low.

2. L&T Emerging Businesses Fund-Direct Plan (G)

  • AUM – 3586 Cr
  • 1 Year Return – 65.9%
  • Top Holding – The Ramco Cements, HEG, Aarti Industries, Rane holdings, Carborundum Universal Ltd
L&T Emerging Business is relatively new fund. The basic objective of this fund is to generate capital appreciation from a diversified portfolio of equity and debt.

3. Reliance Small Cap Fund-Direct Plan (G)

  • AUM – Rs 6371 Cr
  • 1 Year Return – 63.8%
  • Top Holding – VIP Industries, Navin Fluorine, Deepak Nitrite
Reliance Small Cap Fund-Direct Plan (G) scheme seeks to generate income and long-term capital appreciation by investing in small-cap companies. The historical performance of this mutual fund is very good. The expense ratio of this fund is very low.

4. HDFC Small Cap Fund-Direct Plan (G)

  • AUM – 2151 Cr
  • 1 Year Return – 61.7%
  • Top Holding – Sonata Software, Aarti Industries, KEC International, Dilip Buildcon

HDFC Small Cap Fund-Direct Plan (G) aims to provide long-term capital appreciation by investing predominantly in Small-cap and Mid-cap companies. This fund is managed by an experienced fund manager. It is a good fund for investment.

5. IDFC Sterling Equity Fund-Direct Plan (G)

  • AUM – 2302 Cr
  • 1 Year Return – 61.8%
  • Top Holding – Future Retail, Minda Industries, The Ramco Cements, KEC International, Bajaj Finance
IDFC Sterling Equity Fund-Direct Plan (G) invest in small-cap and mid-cap stocks. The expense ratio of this fund is very low. This fund has given very good returns to the investors in the past.

What is your take on the mutual funds mention above? 

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