Reliance Small Cap Fund

Reliance Small Cap Fund is managed by Mr. Sunil Singhania. The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies. If you have already invested in this scheme keep a close watch on its performance. New investors can skip this fund for a better performing fund in this category.

Where does Reliance Small Cap Fund invest your money?

Reliance Small Cap Fund is a mid and small cap fund which means majority of your money will be invested in stocks of medium and small sized companies. Large cap companies tend to be stable compared to mid cap and small cap companies. And just to give kicker returns it has exposure to mid cap companies. Presently it has just 5.68% exposure to large sized companies and 10.59% exposure to mid sized companies and 80% exposure in small sized companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
How has Reliance Small Cap Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in September 2010, your value of investments would be around Rs 0.95 lakhs. The performance has not been similar to other mid and small cap mutual funds. It has been giving around -1.5% returns for those who have stayed invested since inception.  

Assume you had invested Rs 10,000 every month in Reliance Small Cap Fund through SIP for 5 years today you would have around Rs 3.23 lakhs.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within 12 months an exit load of 2% is deducted while if units are sold after 12 months but within 24 months an exit load of 1% is deducted  from your total returns. No exit load applies for units withdrawn post 24 months. Expense ratio of Reliance Small Cap Fund is 2.80%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year.

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