Today we are going to discuss about small cap Mutual Fund.
What is small cap Mutual Fund?
1 to 100th companies are large-cap companies.
101 to 250th companies are mid-cap companies.
From 251th companies are small-cap companies.
Which companies reviewed are below 7000 crore rupees those companies are called small-cap companies.
Why are you invest in small cap Mutual Fund fund?
The probability of return of funds are sure in small cap Mutual Fund.
Because the share of small cap mutual fund increase faster than large cap or Mid Cap companies.
Big companies can’t increase their review more than 100%. But in comparison small cap companies have more probability of popularity.
Small cap mutual fund is more profitable in long term invest.
If you want to invest for 9 to 10 years then you must select a good small cap Mutual Fund.
What are the difficulties?
When the share market is upwards then the share of small cap Mutual funds are increase fast,like that when the market is downwards the share of small cap mutual fund are decreas faster.
There is a proverb in share market if you don’t take a risk you can’t profit.
But I would suggest some more articles about mutual funds:
➡ How to find Best Mutual Funds in 2024?
➡ SIP vs. Lump Sum: Do not make mistake in 2024!
Who can invest in small cup mutual fund?
Those who are wants to profit more than fixed deposit or whose funds are necessary in anytime they will not invest in small cup mutual fund.
Who are think that they can stay for 5 to 10 years in this market they must invest in small cap Mutual Fund.
Those people should invest insmall cap Mutual Fund Who keep track about share market, because you are required to decision fast in the time of up down of share market.
Or if you can’t cracked about share market then you should avoid small cap Mutual Fund.
How much you can invest in small cap Mutual Fund?
Just like if you don’t take rest in share market,you should not take access risk.
So,let me tell you that you should invest 20 to 25% of your fund in small cap mutual fund and the rest is else where.
Which small cap mutual fund are good?
I will say you that you have two options.
One is Axis mutual fund and the other is SBI Mutual Fund.
They are work with reputation in the market for a long time and giving better return.
There are many small cap companies in the market but in my opinion these two companies give you more profit.
I am telling those who are thinking for invest in small cap companies —
- Keep track on share market market.
- To be invest for a long time.
- Don’t invest more than 15 to 20% of your total amount. I hope you got a basic idea about small cap Mutual Fund through my writing
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