Right time Smallcap and Midcap Mutual funds in India
ప్రస్తుత మార్కెట్ల కరెక్షన్ కారణంగా నిఫ్టీ 500 దాదాపు 30 శాతం కరెక్షన్.
నిర్మాణ రంగంలో -40.3%, అటవీ సామగ్రి -39.5%, హెల్త్ కేర్ -24.8%, నిర్మాణ సామగ్రి -18.4% క్షీణత.
నిఫ్టీ ఇండియా డిఫెన్స్ నుంచి నిఫ్టీ ఎనర్జీ వరకు అనేక సూచీలు గరిష్ఠంగా 36 శాతానికి పైగా కరెక్షన్.
"Now you can invest 50%" likely means that based on current market conditions, it's a good time to put in 50% of your intended investment amount, potentially suggesting a potential buying opportunity with the expectation of further market growth.
One can invest 50% now (22000) and remaining 50% if Nifty at 21200 - 21400
1) DSP Nifty Smallcap250 Quality 50 Index Fund - Direct Plan:
2) Tata Small Cap Fund Direct Growth
TOP Midcap Mutual funds with big correction (15% - 20%) in a Year
1) HDFC Mid cap opportunities direct plan growth
2) Edelweiss Mid Cap Fund Direct Growth
NOTE: Open-ended funds are available for investment at any time, while closed-ended funds have a set period for buying new unit.
SMALL CAP MUTUAL FUNDS
1) DSP NIFTY SMALL CAP 250 QUALITY 50 Direct Growth
NAV: ₹ 10.3 (as on 14th February, 2025)
No of Stocks/Companies : 50
Status: Open Ended Scheme
Exit Load: No charges on withdrawal
Mojor Portfolio Holdings in this Mutual Fund
| Company | Holdings (%) |
|---|---|
| Indian Energy Exchange Limited | 4.36 |
| Angel One Limited | 4.31 |
| Computer Age Management Services Limited | 4.09 |
| ICICI Securities Limited | 3.8 |
| Central Depository Services (India) Limited | 3.72 |
| Castrol India Limited | 3.21 |
| Gillette India Limited | 2.99 |
| 360 ONE WAM LIMITED | 2.68 |
| Mahanagar Gas Limited | 2.56 |
| Zensar Technologies Limited | 2.5 |
Sectors Holding in this Mutual Fund
| Sector | Allocation (%) |
|---|---|
| Capital Markets | 26.22 |
| IT - Software | 10.67 |
| Pharmaceuticals & Biotechnology | 7.43 |
| Finance | 5.6 |
| Gas | 4.63 |
| Electrical Equipment | 4.62 |
| IT - Services | 3.6 |
| Industrial Products | 3.54 |
| Healthcare Services | 3.36 |
| Petroleum Products | 3.21 |
2) Tata Small Cap Fund - Direct Plan Growth
NAV: ₹ 38.8 (As on 14th February, 2025)
No of Stocks/Companies : 59
Status: Open Ended Scheme
Exit Load: For units more than 12% of the investments, an exit load of 1% if redeemed within 12 months.
According to recent data, the top holdings in the Tata Small Cap Fund Direct Growth with their respective weightage include:
Portfolio Holdings in this Mutual Fund
as on 31 Jan 2025
Sudarshan Chemical Industries Ltd.
4.72%
Basf India Ltd.
3.96%
IDFC First Bank Ltd.
3.56%
Wonderla Holidays Ltd.
3.36%
Quess Corp Ltd.
3.22%
Sectors Holding in this Mutual Fund
MID CAP MUTUAL FUNDS
1) HDFC Mid Cap Opportunities Fund Direct Growth
The
Indian Hotels Company Ltd. 4.12%
Apollo
Tyres Ltd. 3.22%
Max
Financial Services Ltd. 3.20%
The
Federal Bank Ltd. 3.11%
Sectors Holding in this
Mutual Fund
as on 31 Jan 2025
Financial 19.99%
Healthcare 12.64%
Technology 8.57%
Services 8.56%
Cash Holding 8.09%
Others 42.15%
2) Edelweiss Mid Cap Direct Plan-Growth
NAV: ₹ 99.4 (as on 14th February, 2025)
No of Stocks/Companies :
Status: Open Ended Scheme
Exit Load: Exit load of 1%, if redeemed within 90 days.
Dixon Technologies (India) Ltd.
4.35%
Persistent Systems Ltd. 3.67%
Trent Ltd. 3.51%
Cummins India Ltd. 3.10%
JSW Energy Ltd. 3.02%
Others 82.35%
Sectors Holding in this Mutual Fund
as on 31 Jan 2025
Capital Goods 16.17%
Services
14.15%
Financial
12.85%
Healthcare
11.36%
Automobile
9.23%
Others 36.24%
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NAV Value and Units
- NAV (Net Asset Value): The NAV of the fund fluctuates daily based on the performance of the underlying index. .
- Units: Investors can purchase units of the fund at the prevailing NAV. The number of units held depends on the amount invested and the NAV at the time of purchase.
Key Observations on Sectoral and Company-wise Allocation:
1. Diversification: The fund is well-diversified across sectors and companies, reducing concentration risk.
2. Focus on Growth Sectors: Sectors like Chemicals, Consumer Durables, and Financial Services dominate the allocation, reflecting their growth potential in the Indian economy.
3. Top Holdings: Companies like Aarti Industries, Crompton Greaves Consumer, and Federal Bank are among the top holdings, indicating a focus on high-quality, well-established small-cap companies.
4. Pros of the Fund
- The fund invests in high-quality small/mid-cap stocks with strong profitability, low debt, and consistent earnings growth. This reduces the risk of investing in speculative or financially unstable companies.
- As an index fund, it has a lower expense ratio compared to actively managed funds. This enhances net returns over the long term.
- The fund provides exposure to 50-100 small/mid-cap stocks across various sectors, reducing concentration risk.
- Since the fund replicates an index, investors know exactly which stocks are held in the portfolio at any given time.
- Small-cap stocks have historically outperformed large-cap and mid-cap stocks over the long term, offering significant growth potential.
- Equity funds in India benefit from favorable long-term capital gains tax (10% on gains above ₹1 lakh) if held for more than one year.
- The "Direct" plan has a lower expense ratio compared to the regular plan, as it eliminates distributor commissions.
5. Cons of the Fund
- Small/mid-cap stocks are highly volatile and can experience significant price swings. This makes the fund unsuitable for risk-averse investors.
- Small/mid-cap funds tend to underperform during market downturns or periods of economic uncertainty. Investors may face losses if they need to redeem units during such phases.
- Small-cap stocks often have lower trading volumes, which can make it difficult to buy or sell large quantities without impacting the stock price.
- Unlike actively managed funds, index funds do not have the flexibility to reduce exposure to underperforming stocks or increase cash holdings during market downturns.
- Small/mid-cap funds are best suited for long-term investors (5-10 years or more). Short-term investors may not benefit from the fund's growth potential and could incur losses.
- While the fund aims to replicate the index, there may be slight deviations in performance due to factors like expense ratios, transaction costs, and timing differences.
- The fund may have a higher allocation to certain sectors (e.g., Chemicals, Financial Services, Information technology, Banking etc), which could increase risk if those sectors underperform.
6. Performance Analysis
- Historical Returns: The fund's performance is closely tied to the Nifty Smallcap and Midcap Index. Over the long term, small-cap indices have delivered higher returns than large-cap and mid-cap indices, but with higher volatility.
- Benchmark Comparison: Investors should compare the fund's performance with its benchmark index and other small-cap funds to assess its effectiveness.
7. Suitability
- Risk Profile: Suitable for aggressive investors with a high-risk tolerance.
- Investment Horizon: Ideal for long-term investors (5-10 years or more).
- Financial Goals: Best suited for wealth creation and capital appreciation over the long term.
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