#hameshakeliye
Preferred Technology Partner
Preferred Technology Partner
Small Cap equity funds invest in India's smallest companies. These companies are not among the top 250 and are generally unheard of in our daily lives. While small firms might provide tremendous profits, they are extremely volatile and can result in short to medium-term losses.
Benefits of Small Cap Funds
Small Cap Equity Funds must invest at least 65% of their assets in equity stocks of small-cap firms, according to current SEBI criteria. Small-Cap firms are all listed companies with a market capitalization of less than the 250 largest corporations listed on Indian stock exchanges.
Small Cap Funds can deliver significantly high returns to investors because they are predominantly invested in relatively smaller companies. These funds, however, are subject to high volatility because the performance of Small Cap companies can be substantially impacted by shifting market conditions. To mitigate the possible impact of this volatility, investors can deploy a modest portion of their portfolio to Small Cap Equity Funds.
Investors Seeking Long-Term Capital Growth
Small Cap Funds can be highly volatile in the short term. Thus, investors should only consider investing in these schemes if they plan to stay invested for at least seven years. Small Cap Funds have an unrivalled ability to provide high returns over long periods. However, due to the possibility of extreme volatility in returns, investors should restrict their exposure to these Equity Funds even over the long term.
High-Risk Investors
Tiny Cap Funds mainly invest in small publicly traded firms with the potential for rapid growth. As a result, the potential for these techniques to generate huge profits is unrivalled. However, this large exposure to smaller companies poses a significant risk because shifting market conditions can greatly impact their performance. Small Cap Funds are suited only for investors with a high-risk appetite due to their increased risk - potentially high return characteristics.
Taxation on Small Cap Funds:
Large Cap funds get similar tax treatment as other equity
investments. Capital gains on the holding period of under a year are
under short-term capital gains (STCG). These are taxed as 15% tax.
Gains made on investments held for over a year are labelled as
long-term capital gains (LTCG). As per the current tax rate, there
is no tax on LTCG till 1 lakh in a financial year. The amount
surpassing this cutoff is taxed at 10% without indexation advantage.
It is very easy to invest in Large Cap mutual funds with RKFS, here are few simple steps:
RKFS was the first platform I used to get onboarded to MF. It made it a lot easier for me to invest and explore. RKFS helped me make better-informed decisions
I am very happy to be an investor through RKFS. When I ask a question, I receive an immediate reply from RKFS team
RKFS is an excellent platform for investing with all financial products under one roof
RKFS is transparent and data based. RKFS is trustworthy. RKFS is a great way to control how much you save and invest through mutual funds as sip investment
RKFS was the reason I began investing. All the while, I was money in my bank account.
RKFS provides the best customer service. The team is polite, courteous, and prompt in responding
to queries. They have been a pleasure to work with, and I look forward to continuing the journey
for many more years. Bravo, RKFS Team!
I love the variety of Mutual Funds available. I was able to choose the right fund for my long-term investments thanks to RKFS team
RKFS was easy to use and understand. The best part was that I received advice from the RKFS team as an expert and friend. They also understood my risk-taking capacity as well as my paying capacity
It is simple to open a Demat account with RKFS. It's easy to complete the forms online and have them delivered by courier. Online, hassle-free process!
RKFS is the best choice if you are looking to open a Demat Account instantly. It takes only 15 minutes to complete the entire process online
RKFS employees were so helpful throughout opening an account that it took me less than 20 minutes to complete.
RKFS introduced me to the SIP Plan. It is flexible and accessible.
This plan allows me to invest in funds, which is the best decision I have ever made.
RKFS Team, thank you so much.
SIP plan is an excellent option for those who want financial security
I did my lumpsum investment during initial days of the pandemic, the team was there to support even when they were all working from home, my investment was done very promptly, and I am earning a good return on it. Thanks team RKFS-
RKFS is an easy-to-use platform. I started investing in two plans. Both have great features. But the SIP plan was my favorite. It allows you to invest in funds easily. This plan allows me to invest and earn returns. RKFS has delivered an exceptional performance-
The website of RKFS is easy to navigate. I can check all my transactions and holding by logging in to my account using the website
I got a SIP plan that would allow me to invest longer. The plan appealed to me because I wanted to maximize profits for a long-term investment of 10-12 years. The sanjhi poonji app is easy to use and one can track the investment in a go. RKFS, thank you
RKFS helped me obtain the SIP plan. They gave me a detailed explanation of the plan. The excellent returns and the monthly payment plan are very easy for me to manage. They are always available to help me if I have any questions
The customer service team at RKFS is outstanding. Although I was still deciding about buying a SIP plan for my business, they helped me find the right one. They were very helpful, and I am glad I called them
They were very professional and pleasant to work with RKFS team members were extremely helpful and recommended great investment plans according to the client's needs. Their phone manner was polite and helpful; they listened well and provided me with a great deal on an investment plan
RKFS made it easy for me to purchase a SIP plan last month. The process was made easy by their excellent mutual fund team. Their executive called me after I had registered my contact information online. The whole process was very easy. RKFS, thank you so much.
I am one of RKFS's old client, the team help me every time I want to apply for an IPO. Though the bidding is completely online and to be done by the client himself the team is always there to help me
I wanted to invest in funds that were relatively safe. RKFS helped me to learn about low-risk funds. RKFS provides excellent customer service
Through RKFS, I have gained extensive knowledge about various SIP plans. I wanted to make investments that would provide high return on investment. With the help of RKFS team, I could identify plans that fit my needs. RKFS's services exceeded my expectations.
Recently, I stared the SIP investment both for myself and my wife. The team is very supportive and polite and answer all the queries and questions with patience and clarifications. It's a long-term investment with many benefits. Much appreciated
I did my lumpsum investment during initial days of the pandemic, the team was there to support even when they were all working from home, my investment was done very promptly, and I am earning a good return on it. Thanks team RKFS
I wanted to invest in SGB and called Mr. RK Gupta who is the chairperson of RKFS, he informed me that today the tranche is closing, within 15 minutes the team opened by demat account, registered me on BSE STAR and within an hour my investment in SGB was done. Everything was online, commendable team RKFS
The trading team is always there to support the clients, I am connected to RKFS since last many years, the team also try to give the best advice and help in decision making
The newly launched tradium app for trading is user friendly, now I can do my intraday day trade myself in a go
I am a connected with RKFS since more than 30 years, I am connected as an AP with them the transparency, support and the ethics of the team flows from Mr Rk Gupta JI (bhai sahab ) to each and every team member.
Connected with RKFS is a matter of pride and joy for us as we are working day and night together is collaboration with RKFS since more than last 25 years to make the future of our clients financially safe and secure. The second generation in the family that is the son and daughter of Mr Rk Gupta have inherited the vision , ethics and foresight from their father in a very refined manner
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Nowadays, the path of many novice investors into the investment world begins with mutual funds.
As we all are aware, mutual investment funds are large “piggy banks” managed by asset management
companies that invest the money raised by investors in various financial assets
Because Small Cap Mutual Funds are equity funds, which invest in company stocks, you must commit to investing for at least five years.
Small Cap Funds have delivered 0.02% p.a. returns on average during the last year. Their annualized returns over three and five years are 30.03% and 12.04%, respectively.
Small Cap Mutual Funds invest in equities. Therefore, they might be volatile in the short term. However, the danger decreases significantly over time.
Small Cap Mutual Funds are required by law to invest at least 65% of their assets in stocks of firms ranked 251 and above in India based on market capitalization. Most funds in the category also invest in midcaps, with only a tiny percentage in large caps. Regardless of these allocations, these funds are always small-cap heavy and bear the risk-reward profile of the small-cap investment.
Small Cap Funds provide exposure to small businesses that have the potential to grow into mid and large-sized companies in the future. On the other hand, small caps can be exceedingly volatile in the short run, especially if market conditions are unfavourable. However, the returns can outperform the market if you stay invested long enough.
Disclaimer: Fund Names Are as Per the Data Provided by Investwell Inc, Which is Our Service Provider for Sanjhi Poonji Mutual Fund App. Kindly Note That the Top Fund Are Subject to Market Changes. For More Updations Kindly Register/login on Sanjhi Poonji App or Website Login.
