Reliance Small Cap Fund is a mutual fund investment scheme that aims at generating long-term capital appreciation by investing predominantly in equity and equity related instruments of small-cap companies. Furthermore, this mutual fund investment is a great choice for investors as it also seeks to generate consistent returns by investing in debt and money market securities. However, this mutual fund investment scheme neither qualifies as an Equity Linked Savings Schemes (ELSS) or tax-saving mutual fund scheme meaning it does not qualify for any tax deductions. Morningstar has assigned a four-star rating to this fund.
Launched on the 16th of September, 2010, this mutual fund investment scheme adopts a mid-path, not leaning completely towards either growth stocks or value stocks. Instead, it focuses on looking for solid business models which are available at a reasonable price. Some of the other parameters that make this fund one of the best performing mutual funds in India is that it seeks out companies which display a solid management, business sustainability measured, scale and realistic valuations.
Reliance Small Cap Fund is a mutual fund investment scheme that focuses on generating long-term capital appreciation for its investors with the help of an equity heavy portfolio that does not fall into the category of the top 100 stocks by market capitalization. Essentially an open-ended equity growth scheme, this mutual fund investment is a great choice for investors who subscribe to the high-risk/high-return investment philosophy.
This mutual fund investment scheme has given an exceptional performance and is clearly ranked as one of the top midcap funds since the past few years. Owing to the fund’s bias towards small-cap companies, the fund has consistently managed to top the charts in most years since its inception while providing consistent earnings growth as well. To highlight this point, this mutual fund has been ranked number one in the ‘Small & Mid Cap’ category by CRISIL, for the quarter ended December 2017, a rank which has remained unchanged from the previous quarter. If you’re looking to make a one-time investment in this fund, the minimum investment required is Rs. 5,000. Similarly, if you’re planning to opt for SIP Investment, the minimum SIP is pegged at Rs. 1,000 per month.
This fund is currently under the management of experienced portfolio manager Mr. Samir Rachh since January 2017 who also manages three open-ended schemes of Reliance Mutual Fund. Besides this fund, Mr. Rachh has also been in charge of managing Reliance Mid & Small Cap Fund since September 2010 along with Reliance Regular Savings Fund – Equity Option since April 2017. Mr. Rachh co-manages this fund with another veteran manager Mr. Dhrumil Shah. Further, he’s backed further by a solid team that has ensured a consistent and solid performance in this mutual fund investment for a long time now.
Additionally, between the years 2012-2014, it also managed to outperform its category in terms of two and three-year trailing returns while generating superior alphas as compared to other small and midcap funds. The remarkable part about this fund’s performance is that it has managed to return solid performance, even during bear phases despite not depending much on large-cap stocks which further adds to fund management team’s credibility of stock selection.
The Bottom Line
The Reliance Small Cap fund has managed to deliver a robust & strong performance since its inception. Investors looking for a longer term investment horizon can opt for Reliance Small Cap Fund as it may outperform Nifty and will definitely create wealth. Hence, investors looking to create wealth, taking care of lifestyle demands along with another medium to long-term aspirations should definitely look to invest in this fund. We believe that It is always better to choose your investment options based on your goals, investment horizon, and risk profile. Our financial advisors are known to create tailor-made customized investment plans keeping in mind your financial goals while also taking into account the time you need to achieve the goals along with your risk appetite. If you are looking for one of the top mutual funds in India and willing to adopt a long-term approach while staying invested in this fund keeping in mind an investment horizon of at least 7-10 years, you can approach our financial advisors for investing in a small-cap scheme like Reliance Small Cap Fund.