Make Money: Mutual funds can be a good option for you if you want to get big returns on small amounts. In the last one year, many such funds have given a bumper return of 100%.
Everyone wants to make big money from small savings. But only a select few are able to do this. However, experts often advise that if planning is done at the right time, then even bigger goals can be achieved with a small amount. On this, many financial experts often say that SIP is a better instrument. That is why today we are giving you information about one such fund. Which doubled the amount in one year.
Know about the Canara Robeco Small Cap Fund Regular Plan
The performance of this fund has been excellent in the last one year. In one year, this fund has given 105 per cent, six months 34 per cent, 3 months 15 per cent returns.
If you put it in simple words, if someone had put an amount of Rs 10,000, then in 3 months it would have increased to Rs 11467, in 6 months to Rs 13427 and in a year to Rs 20514.
In this way, if someone had invested money through SIP, then he would have invested a total of 12 thousand rupees in a year. The value of its total amount would have increased to Rs 17328. At the same time, a total investment of Rs 24 thousand would increase to Rs 35939 in two years.
Now a question arises here, is it still right to invest money?
On this, big financial experts tell that if an investor is investing money for the first time, then they should avoid these funds. However, it is considered very important to have a smallcap fund in a good portfolio. But there are big fluctuations in such funds. That is why experts advise small investors to stay away from them.
Experts say that this scheme is for high risk investors. However, if you are thinking of investing money in it, then the approach of investing in it should be at least 7 years or more.
Now know what are smallcap funds?
It is understood by the name of small cap fund. These funds invest in small companies. SEBI has decided the category of funds on the basis of capital market.
Companies starting from the 251st rank in the market cap fall into the small cap. Companies whose market cap is less than 500 crores are small cap companies.
Experts say that there is hope for faster growth in the business of small companies. That is why the returns are also large. Small companies are included in the small cap. Companies are expected to grow rapidly. A small cap company can become a multibagger. Expect more returns from small caps. There is a possibility of higher returns here compared to other funds.
Is there any risk in a smallcap fund?
Smallcap companies have a significant risk. Because many companies have good business models. But their promoters are not able to carry on the business. In such a situation, these companies collapse completely. It has also been seen many times that even if something happens to the promoters who make the company, these companies are not able to move forward. That is why there is a lot of risk in them. There is also the fear of closure of companies. In small caps, the fund manager has an exposure of up to 65% -90%.
Small investors are not advised to invest in smallcaps. Small cap is quite a volatile category. There is more return here but there is also more risk.
Large and mid caps are better for new investors. If the investor has high risk potential and has a target of more than 15 years, then in such a situation, you can invest in small cap. Small caps should form part of the satellite portfolio.
Know about Canara Robeco Mutual Fund…
Canara Robeco Mutual Fund is the second oldest asset management company (AMC) in India. It has been offering good investment options for many years. Those who put money in many schemes of the company have got bumper returns.
Canara Bank has a large penetration in the Indian market. It is a state-run bank. Canara and Robeco both run an Asset Management Company (AMC). Earlier it was called Canara Bank Mutual Fund.
But after the partnership with Robeco, it has now been named Canara Robeco Mutual Fund. Canara Robeco Mutual Fund is one of the fastest growing mutual funds in India from the perspective of AUM (Assets Under Management).
Also read: From next month, these rules will change with respect to income tax, if not known, loss will be done