Looking for a mutual fund scheme that could give you market-beating returns? Here is a fund which has delivered superior returns over a five year period outperforming the index it is benchmarked against. An investment of Rs 10,000 per month via systematic investment plan (SIP) route over a period of five years in Quant Small Cap Fund's growth is worth nearly Rs 19 lakh today.
Quant Small Cap Fund(G) which predominantly invests in smallcap stocks has given extended internal rate of returns (XIRR) of 49% according to data sourced from Ace Equities, earning Rs 13 lakh on the total investment of Rs 6 lakh made between February 10, 2019 and February 10, 2024. Meanwhile, the CAGR returns stand at 59%.
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.
About the fund
The scheme falls under the Smallcap Fund category and has a nil lock-in period. The primary investment objective of the scheme is to offer capital appreciation and provide long-term growth opportunities by investing in a portfolio of small Cap companies.
The mutual fund scheme allocates a minimum of 65% of equity and equity related instruments of small cap companies with smallcap allocation going up to 100%. Depending upon the market situation the fund may also allocate debt and money market securities which will not go beyond 35% of the total assets. The scheme also allows units issued by REITs and InvITs with a cap of 10% of the total assets.
New investors can invest with an amount of Rs 5,000 and any amount thereafter while for existing investors, Rs 1,000 and any amount thereafter is allowed. For Systematic Investment Plan (SIP), the minimum amount is Rs 1,000 and in multiples of Re 1 thereafter.
While mutual funds investment is a passive way of taking exposure to stock markets, it does not come without risk even though it is managed by professional fund managers.
According to Ace Equities, the adjusted net asset value (NAV) stands at Rs 266.23
The fund managers are Ankit Pande, Vasav Sahgal and Sanjeev Sharma.
Also Read: Top 5 equity mutual funds that have outperformed benchmarks. Check details
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