Human beings are made up of different mentalities, features, and nature. What suits one may not necessarily suit the other. While some people have an aggressive outlook towards life, the others might take calculative steps in every decision that they take for themselves.
Keeping the discrete nature of people, the mutual fund industry homes different kinds of funds to ensure that everybody gets a chance to make good wealth and achieve their objectives. Reliance Small Cap Fund is counted among the top-performing funds, and is mostly opted by aggressive investors looking for an opportunity to build great wealth by taking higher risks.
In this article, we’ll make a detailed discussion on the several merits of Reliance Small Cap Fund (G), which will help us understand why the fund has been recommended on all major platforms, such as MySIPonline.
The Salient Features of Reliance Small Cap Fund (Growth)
• High Growth Prospects
One of the strongest alibis that you could give yourself for investing in Reliance Small Cap Fund – Regular Plan (G) is its huge growth prospects in future. Being a small cap fund, it holds major stakes in freshly started companies that have a long way to go before they make a mark in the market. Hence, these companies tend to nest immense scope for expansion and thus, can pave the way for capital appreciation in the long term.
• Scope for Diversification
Reliance Small Cap Fund is an excellent tool for adding diversification to the portfolio. Its high energy sets the portfolio in an aggressive mode, thus helping it to fetch better results at a faster pace. Also, this diversity enables the portfolio to add multiple sources of wealth creation that enables it to dodge the failure caused by the market.
• Exorbitant Returns
The best reason to invest in Reliance Small Cap Fund (Growth) is its rewarding scheme, which has touched the sky in the recent past. Started just 9 years ago in 2010, the fund has raised to an exceptional level of performance and has set the bar very high for the peers to chase. The last five years have been really rewarding for the patrons of this fund, where the yield skyrocketed to 20.10%. Also, the overall average yield achieved by Reliance Small Cap Fund (G) was recorded at a whopping 17.62%, which is an impressive figure for any small cap fund that not spent a lot of time on the field.
• Excellent Resource Management
For a fund to sustain progress, it is important that its resources are used as feasibly as possible and shall be optimised to the maximum level possible. At Reliance Small Cap Fund – Regular Plan (G), the expense ratio remains well within the normal range and is currently floating around 2.16% as recorded on 30th April 2019. This thus tells us that the fund managers are really prolific in their task, and hence, you can be assured of your wealth being in safe and responsible hands.
A Word of Caution
Investing in Reliance Small Cap Fund may seem all glittering, but in the inside it is a different story altogether. The results talked about above are absolutely legit, but there’s a condition that needs to be fulfilled to achieve those figures. Like many mutual funds, Reliance Small Cap Fund (Growth) hosts an exit load to the tune of 1%, if a redemption is attempted before the expiry of 365 days. So, never plan a short-term investment in this fund, and try to keep the horizon at least between 5-7 years.
Hence, in the light of the above facts and considering the presence of an exit load, MySIPonline’s experts suggest that a long-term investment shall be planned in Reliance Small Cap Fund, preferably via an SIP.