Page 2 - Smallcap Fund News Today

Indian shares look set to open on a flat note Wednesday amid mixed catalysts. Data showed overnight that U.S. inflation continued to ease but much of core inflation remains sticky, effectively closing the door on the possibility of a Federal Reserve interest-rate cut before June.

Earlier, Nippon, Tata and SBI MFs put restrictions on lump sum investments in their small-cap schemes, as high valuations and strong flows make it challenging for fund managers to deploy money. But ICICI will be the first fund house to restrict lump sum investments in a mid-cap fund.

Indian shares fell sharply on Wednesday, with Fed rate cut uncertainty and ongoing selloff in the mid-cap and small-cap space keeping investors nervous. U.S.

These smallcap schemes could be at risk as they have lesser exposure to large stocks, cash and cash equivalents (including T-bills), and higher exposure to stocks from the Nifty Microcap 250 Index

Rising equity markets are bringing investors into mutual funds through SIPs. And insurance companies want to have a pie. Insurers have now increasingly started using terms like NFOs, index, fund, switch, NAV, SIIP, market risks, etc. that are used for mutual fund products. While both offer investments in stock markets, the entry costs, lock-in period, and withdrawal terms differ. Be mindful of the differences.

Nippon India Small Cap Fund(G) which predominantly invests in smallcap stocks has given extended internal rate of returns (XIRR) of over 37% according to data sourced from Ace Equities, earning Rs 8.80 lakh on the total investment of Rs 6 lakh made between February 22, 2019 and February 22, 2024. Meanwhile, the 5-year CAGR returns stand at 30.57%.

The scheme which was launched on October 29, 1996 is benchmarked against Nifty Smallcap 250 - TRI and has given returns at an XIRR of 35% while at a CAGR of 40% during this period.

Muthoot Microfin is promoted by Muthoot Fincorp, which is the third-largest gold loan player.

Small-caps have the potential to deliver outsize returns over the long term. But the space is relatively less studied

Three new fund offers or NFOs – Quantum Small Cap Fund, Aditya Birla Sun Life US Treasury 1-3 year Bond ETFs FoF, and Aditya Birla Sun Life US Treasury 3-10 year Bond ETFs FoF – are open for subscription in the market.