Should i invest in hdfc small cap fund

Share this Comment: Post to Twitter. So you can say that there is a higher chance that Fund A will continue giving similar returns in future also whereas Fund B returns may vary. You have also not mentioned your financial goals.

Strategies for Mutual Funds That Hold Small-Cap Stocks

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Risk Ratios

When choosing U. Most financial advisers counsel a bigger exposure to large cap than small cap. There are times when one does better. For example, during the late s, large-cap stocks outperformed small cap stocks amid a speculative bubble in technology stocks. But after the bubble burst, small-cap stocks outperformed large cap from to Mid-cap stocks fall in between. Historically, small-cap stocks have outperformed large-cap stocks, but they also have been more volatile.

Tax Treatment

When choosing U. Most financial advisers counsel a bigger exposure to large cap than small cap. There are times when one does better. For example, during the late s, large-cap stocks outperformed small cap stocks amid a speculative bubble in technology stocks. But after the bubble burst, small-cap stocks outperformed large cap from to Mid-cap stocks fall in. Historically, small-cap stocks have outperformed large-cap stocks, should i invest in hdfc small cap fund they also have been more volatile.

From throughsmall-cap stocks averaged an annual return of Through the end ofsmall-cap funds generated average annual returns of That tops the performance of large-cap funds over all three periods.

Large-cap funds produced returns of But that outperformance would come with higher volatility. Over the last 10 years, volatility, measured by standard deviation, totaled Without getting too technical, standard deviation of Generally, the younger you are, the more money you can put in small cap, since you can generally tolerate more risk and have a longer time period during which you can invest, Heyman says.

Another point to consider when choosing a small-cap or large-cap fund is whether to opt for one with value stocks or growth stocks. The former are viewed by fund managers as undervalued and the latter are viewed as poised for strong earnings growth. In the small-cap arena over the past five years, actively managed funds generated an average annual return of On the large-cap side, actively managed funds gained That makes a case for buying index funds for large-cap stocks and actively managed funds for small caps.

Heyman agrees with that strategy, though he also recommends investing in a small-cap index fund to lessen risk. As far as choosing among actively managed funds, he suggests going with a veteran manager with a consistent approach. When it comes to fees, small-cap funds have an average expense ratio of 1.

But Kinnel says small-cap funds charge more merely because they can get away with it. He advises shooting for expenses of less than 1 percent for small-cap funds and less than 0. More On Investing: Investment styles of managers Reducing tax liability of mutual funds Foreign dividend stocks offer promise Sector funds: Are they right for you?

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Stock performance and volatility

Posted by : Rvpathania. Detailed Portfolio Analysis. Axis Small Cap Fund — Growth. Things You should consider Annualized Return. However, these funds also have the potential to deliver high returns, provided the holding period is between years. Tax Treatment. Like 0 Reply reply Cancel. Mail This Article. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol. Chalet Hotels Ltd. Better risk adjusted returns. SIP Shou,d Date. Kotak Should i invest in hdfc small cap fund Cap Fund — Growth. So you can say that there is a higher chance that Fund A will continue giving similar returns in future also whereas Fund B returns may vary. Suitable For : Investors who are looking to invest money for at least years and looking for very high returns.