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Bandhan Small Cap Fund - Direct Plan

An open ended equity scheme predominantly investing in small cap stocks

EquityInception Date:25/02/2020
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What are Small Cap Mutual Funds?

Small cap mutual funds invest in diversified stocks of small companies, termed as small cap stocks. Regulator defines small cap companies in terms of market capitalisation. Companies below the 250th rank are classified as small-cap companies. Small cap mutual funds predominantly invest in such companies to gain potential returns in the long term.

Any level of volatility in the market can affect small cap funds. Consequently, small cap mutual funds are categorised as a high-risk investment. However, they have a significant potential to offer high returns in the long-term.

Small cap mutual funds can help in diversification of an investor’s portfolio as they invest in companies from different sectors. Additionally, small cap companies are more likely to have a higher growth and scale their operations in comparison to mid-cap and large-cap companies.

  • Min Investment 1,000
  • Min SIP Amount 100
  • Exit Load

    1% if redeemed/switched out within 1 year from the date of allotment

Annualised Returns(as on 30th Jun, 2024)70.57%1yr27.31%3yrN.A.5yr
NAV 42.6840 as on 10/07/20241 Day Change: -0.08(-0.19%)

Scheme is suitable for a minimum investment horizon of more than 5 years

Tier 1 Benchmark : S&P BSE 250 SmallCap TRIAlternate Benchmark : Nifty 50 TRI

Performance as on 28th June 2024

Scheme NamesCAGR Returns (%)Current value of Investment of 10,000
1 year3 year5 year10 year26/02/2020 Since inception1 year3 year5 year10 year26/02/2020 Since inception
Bandhan Small Cap Fund - Regular Plan - Growth70.5727.31N.A.N.A.38.4917,08220,648N.A.N.A.41,090
^ Tier 1 Benchmark   |   ^^ Alternate Benchmark   |   ^^^ Tier 2 Benchmark

This fund is managed by Mr. Manish Gunwani (w.e.f 28/01/2023)Mr. Kirthi Jain (w.e.f 05/06/2023)Mr. Harsh Bhatia (w.e.f 26/02/2024)

View fund performance of other funds managed by Mr. Manish Gunwani, Mr. Kirthi Jain, Mr. Harsh Bhatia

Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.


For taxation, please refer the link :  https://bit.ly/3spfzbo

Bandhan Small Cap Fund

(Scheme Risk-o-meter)

Investors understand that their principal will be at Very High Risk.

S&P BSE 250 SmallCap TRI

(Tier 1 Benchmark Risk-o-meter)

This product is suitable for investors who are seeking* :

  • To create wealth over long term.
  • Investment in equity and equity related instruments of small cap companies

Who should Invest in Small Cap Mutual Funds?

Small cap mutual funds are suitable for investors with an appetite for high-risk investments. These funds are suitable for investors looking for long-term investments as there is a greater likelihood of earning potentially higher returns and creating wealth in the long-run. Investors who are seeking investments in equity and equity-related instruments of small-cap companies can invest in small cap mutual funds.

Small Cap vs Large Cap Mutual Funds:

  • Large-cap funds have a lower risk, whereas small cap funds are high-risk investments.
  • Small cap mutual funds have a higher potential and scope to grow. Large-cap funds have a higher potential to give stable returns.
  • Large-cap funds are considerably less volatile and provide more liquidity. Small cap mutual funds are more volatile and relatively provides less liquidity.


Small Cap vs Mid Cap Mutual Funds:

  • Mid-cap funds are relatively less risky than small cap mutual funds.
  • Small cap mutual funds have a greater growth potential. Mid cap funds have a moderate growth potential.
  • Small cap funds have higher volatility and less liquidity. Mid cap funds have relatively moderate volatility and liquidity.


FAQs on Small Cap Mutual Funds

What is a small-cap fund?

Small cap funds are mutual funds that invest in small cap companies. Small cap companies are defined in terms of market capitalisation. These small cap companies have greater potential and scope to grow, potentially offering significantly higher returns further allowing for wealth generation over the long-term.

Is it good to invest in small cap funds?

Small cap funds can be a good option for investors who are not risk-aversive. Small cap funds are high-risk but also have the potential to give high returns. They are also suitable for investors looking to create wealth over the long-term.

How risky is a small-cap fund?

Small-cap mutual funds are a high-risk investment option and are not suitable for risk-averse investors. They are more volatile and less liquid than midcap and large cap funds.

What are the disadvantages of small cap funds?

Small cap mutual funds are more risky and volatile in comparison to mid and large cap funds. Moreover, they have low liquidity.

How long should one be invested in a small-cap fund?

Small cap mutual funds are susceptible to market fluctuations and can be a risky short-term investment. They are, thus, considered a long-term investment option. It is necessary to give these small companies enough time to grow to generate potentially better returns. The recommended period to hold investment in a small-cap fund is a minimum of five years, although this number may differ depending upon the investor and their goals.

What is the difference between a small cap fund direct growth plan and regular plan?

All mutual funds have direct growth plans and regular plans. In a direct growth plan, investors invest directly with the AMC. In a regular plan investors can invest via an intermediary, such as a broker or financial advisor.

Do small-cap funds give high returns?

Small cap mutual funds invest in stocks of small cap companies which are defined on the basis of market capitalisation. These small cap companies have greater potential and scope to grow in the long-term. Although small cap funds are risky in nature, they have the potential of offering significant long-term returns.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

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