As its name suggests, the Axis Small Cap Fund direct is a small-cap fund, where the fund invests in small-cap firms. So, wise back, it is uprooted, but also risky at the same time.
So, for the long term goal, it should be better and invested through SIP mode for at least 7 to 10 years. Test your goal amount, time horizon, and risk appetite and decide accordingly.
Well, the Axis Small Cap Fund direct is a direct-growth, small-cap equity fund of sorts, with 81.88 percent investment in Indian stocks, of which 13.69 percent in mid-cap stocks, 62.83 percent in small-cap stocks and suitable for investors who want nthingstoknow. in the long term.
Axis Small Cap Direct Fund invests in small-cap firms
Small-cap funds invest in small-market capital companies, which are in growing businesses or startups. While these businesses have great potential for future growth and can achieve strong returns on investment, higher volatility is maintained on profits from these companies.
Axis Small Cap Fund direct is a fund with equity. It falls under the category of ‘small-cap,’ where the portfolio invests in small-cap business stocks. That makes it highly unpredictable when compared to other categories, such as large equity funds. Nevertheless, due to high risk, they also have a high potential of returns. This form of fund, however, is ideal for investors with high-risk appetite, long-term goals, and long-term investment tenure. Axis Small Cap is a good option if you have been investing for more than seven years.
A lot of time is needed to give better returns
The fund is probably the only one in the small-cap category apart from the small-cap of SBI, which has produced positive returns in the last two years. Small-cap funds require a lot of time and patience to deliver good returns. If you have an investment horizon of 5-7 years, you can invest in this fund through SIP.
Investors who are planning to invest in small-cap funds or if they are already invest in small-cap funds are also advised to continue their investments for an extended period of about five years, then long term. The investment will enable you to reduce the market impact. The volatility on your returns, and the more you invest in the equity market, the better your chances of earning.
Performance of the scheme
- In the past, it had improved its benchmark S&P BSE 250 SMALLCAP TRI.
- The fund was introduced in November 2013 and has since returned 22.54 percent.
- Your one-time investment of 1 lakh has increased to 1.86 lakh in 5 years, and if you do SIP of Rs. 10000 for five years, you would have received 8.76 lakhs out of 6 lakhs of total investment.
- The fund outperformed all indexes, making it the best investment for a long time.
Note: However, often, the outperforming fund tends to slip into performance after some time. So going for any particular plan and periodically review the results.
Also Read: Reasons To Consider Employees As Best Investment For An Entrepreneur
