Nippon Small Cap Fund: Here is An Eye-opening Opportunity

Introduction

What if I tell you that I have a scheme that can be an eye-opening opportunity for you all? Well yes, the scheme’s name is Nippon Small Cap Fund. It is a mutual fund designed to tackle the opportunities offered by small-cap stocks in India.

This fund is managed by Nippon Life India Asset Management, it is focused on a diversified portfolio of small-cap companies, which typically have a market capitalization lower than large-cap and mid-cap stocks.

In this article, we will dive into the details of this small-cap fund and learn about its objective, history, performance, and why you should choose this small-cap fund.

What is the Nippon Small Cap Fund?

This Small-Cap is a mutual fund that invests in small-cap stocks that have a market capitalization of Rs.500-5000 crore. It was originally known as Reliance Mutual Fund, but in 2019, the Nippon life insurance company bought reliance stake and renamed it.

 Mr. Samir Rachh and Mr. Sudeep Sikka are the two fund managers of this small-cap fund these companies are typically in the early stages of their business growth and may have higher growth prospects, but they also come with a higher level of risk due to their size and market instability.

History and Background of Nippon India Small Cap Fund

As an Indian investor, you want a small-cap fund that has grown and matured over the years. This company was established in 1995 and in 2004 they launched this small cap fund. The company focuses on cap small-cap stocks.

 Its success is attributed to the strong expertise of its fund management team, the growth potential of small-cap companies, and its disciplined investment strategy.

 Over the years the fund strategies have evolved with increasing factors like corporate governance. While a small-cap company can be risky this small-cap mutual fund has given the best growth potential result.

Performance of the Nippon Small Cap Fund

The company with 27 years of experience will have a great impact as a performer. While stock funds are very volatile and unpredictable still it shows an excellent result. It has given a strong performance in every time horizon. The stocks and bonds can vary significantly depending on market conditions.

Although, the performance of this small-cap fund is way better than others how can you make the right decision at the right time? Let’s see

How to Invest in Nippon Small Cap Fund?

Many people don’t know how to invest in a mutual fund here are a few steps to follow while investing in small-cap funds:

1. Choose a Mode

Every small cap fund has two modes online and offline.  In online you can you can choose an official website or a platform in which you are comfortable. Meanwhile, offline you can fill out the application form at the office or consult a financial adviser.

2. KYC Completion

Before investing in any small-cap funds you should complete your KYC (Know Your Choice) using your Aadhar card and PAN card. After that, you can start further process.

3. Decide the Investment Type

Deciding the best investment strategies is very important you should know your risk-taking capacity and then decide. In this small-cap fund, you can invest in two ways Lumpsums and SIP. Lumpsums is a one-time investment starting from Rs.5000. Whereas a Systematic Investment Plan is a disciplined approach where you can invest a fixed amount every month starting from Rs.100.

4. Monitor Your Investment

After investing in mutual funds always keep track of your investment because this is a small-cap fund that is highly volatile and risky.  So make sure that it aligns with your financial goals.

However, the question remains in our mind is that what is so special in this small-cap fund.

Why Should You in Nippon Small Cap Fund?

Here are some key reasons to invest in Nippon small cap fund

1. Growth Potential of Small-Cap Companies

As you, all know small-cap companies are very unstable and a bit risky but still have immense growth potential compared to Large-cap companies. That’s why investing in such companies offers immense growth in the long term.

2. Diversified Stocks and Bonds

Small-cap fund provides investors with to access a diversified basket of small-cap companies. This reduces the risk of investing in a single sector while offering the outlook of a wide range of growth opportunities.

3. Consistency

Over the year, the fund has consistently surpassed the benchmark. This track record shows that the company has the ability to navigate the market volatility and deliver outstanding returns over time.

4. Ease of access

A low SIP starting from Rs.100 made this fund accessible to a wide range of investors and beginners. It’s a great way to start investing in small-cap funds without any large upfront commitment.

5. Strong Brand Packing

As we know, it is managed by a strong mutual fund company and has the most reputed names in the mutual fund industry. These benefits from a strong institutional framework and strong research capability.

Although, we now know the reasons to invest in this small-cap fund let us see who should invest in this small-cap fund.

Who Should Invest in Nippon Small Cap Fund?

The Nippon India Small Cap Fund is suitable for investors who:

1. Are looking to diversify their portfolio

• Wants to have long-term investment and willing to ride out market fluctuations.

• Wants professional management to navigate the volatility of the small cap fund.

• Have a high-risk tolerance and can tolerate short-term market changes.

Let’s conclude this article.

Conclusion

In short, the Nippon Small-Cap Fund is a perfect fund for all those who are willing to invest in a fund that can give you high returns in the future. While the risks are high the rewards are much higher than that. Keep in mind that your investment for the long term should be more than 5 years. By staying invested in this small-cap fund the investor can unlock great opportunities for wealth creation.