If you’re looking to invest in a mutual fund in 2023, there are a few different options to choose from. These include funds that focus on small caps and those that are geared toward high growth. Some of these include Axis Small Cap Fund Direct-Growth, SBI Small Cap Fund Direct-Growth, Parag Parikh Flexicap Fund, and Kotak Equity Opportunities Fund.
Mirae Asset Tax Saver Fund
Mirae Asset is a Korean company that’s been around for several years. They have been a leading player in the South Korean financial market for a while and now they’re expanding their horizons into the Indian market. The company has a slew of fund offerings, including a variety of mutual funds, which you can buy from their website or the digital financial hub Paytm. Investing in Mirae Asset’s offerings is a wise move for those looking to make smart investments.
This company has been a pioneer when it comes to introducing the mutual fund industry to the masses. Their asset management wing started operation in 1997 and has since then expanded across the globe. Not only does Mirae Asset have a solid presence in South Korea, but also in Australia, the USA, Indonesia, the UK, and Canada. It is no surprise then that it’s been able to establish itself as a top-tier player in the global financial sector.
For those in the market for a new investment vehicle, the Mirae Asset Tax Saver is a great place to start. It’s not only a well-rounded fund, but it’s also the third largest tax saving scheme in the country. As of Nov, the fund had managed close to Rs 13,550 crores.
Axis Small Cap Fund Direct-Growth
Axis Small Cap Fund is a growth-oriented small-cap fund. It focuses on quality stocks and invests in attractive valuations. As a result, it has generated superior risk-adjusted returns for investors.
The Axis Small Cap Fund invests in the top 100 listed small caps. On January 31, 2022, the portfolio held 64 stocks. Moreover, its management team has proven stock-picking expertise.
To make the most of the opportunity presented by the Small Cap Fund, you should have a long-term investment horizon. You also need to be willing to take on a high degree of risk. For this reason, the Axis Small Cap Fund is recommended for investors with a high level of risk appetite.
When you are looking for a Small Cap Fund, it is important to choose a well-managed fund. Axis Mutual Funds is a reputable fund house that has consistently outperformed the market.
The fund has also delivered superior returns over the past five years. During this time, it has outperformed the Nifty Smallcap 250 – TRI by a significant margin. In addition, it has a low standard deviation.
Investors who want to diversify their portfolios can also consider debt funds. Debt funds have minimal risk, and they provide a predictable return. However, they can be volatile in the short term.
SBI Small Cap Fund Direct-Growth
Small Cap Funds have the potential to give good returns, but they can also be risky. Therefore, it is important to choose wisely. The best small-cap funds are the ones that focus on high-quality, high-growth-potential stocks. They should also be chosen by investors with long-term goals.
A fund manager has the power to select and sell fund assets. As such, the return that the fund provides is highly sensitive to market sentiments. Also, investors should be aware of the tax implications of investing in a particular option.
In the past few years, SBI Small Cap Fund has outperformed all other diversified equity funds. The fund has delivered an annualized return of 25% over the last 10 years. This is the best return across all of the diversified equity funds.
Although small-cap funds are not the best choice for all types of investors, it is possible to find one that suits your needs. However, the best small-cap funds should be able to provide a reasonable valuation and reasonable growth prospects.
Typically, a small-cap fund is expected to deliver a high return during bull markets. However, the volatility of returns can be severe during volatile periods.
Parag Parikh Flexi Cap Fund
Parag Parikh Flexi Cap Fund is one of the most popular and profitable funds in the Flexi cap category. Its portfolio is diversified and well-managed and has generated superior risk-adjusted returns. The fund also has the ability to limit downside risk in depressed market conditions.
With an AUM of Rs 22,647 crore, it is the fifth largest Flexi cap fund in the country. In the past 18 months, the fund has jumped fourfold. This has helped the fund score a higher risk-adjusted return than the NIFTY 500 – TRI benchmark.
Flexi Cap funds are suitable for investors who are willing to invest in both large and mid-cap stocks. The fund managers can diversify across market capitalizations and sectors and can identify alpha-generating opportunities. However, the volatility of the equity market can sour the portfolio. To reduce this effect, investing through a systematic investment plan (SIP) will help compound wealth over time.
The recent market correction has affected the profile of most Flexi Cap funds. Many have tilted their portfolios towards large-cap stocks. Also, big domestic and foreign bets have taken their toll on the fund. Fortunately, the Parag Parikh Flexi Cap Fund has recovered from this recent downturn.
Quant Small Cap Fund
A Quant Small Cap Fund is a small-cap mutual fund that invests in small-cap companies. These companies tend to be less volatile than their larger counterparts. They also offer higher return potential. However, they have a limited number of shares, which makes it difficult for an investor to buy or sell.
The primary aim of a Small Cap Fund is to provide long-term growth opportunities. For this purpose, the fund focuses on companies that are fundamentally sound. In addition, it is important to remember that small-cap companies face a higher risk than larger firms, as they may be impacted by economic turmoil.
There is no guarantee that a Small Cap Fund will produce gains, but it can be an attractive investment. Investing in a strong business that has been developed by a reputable management team can be a good way to gain wealth over the long term.
A Quant Small Cap Fund follows an active investment strategy, and it is able to shift its allocation in line with dynamic market conditions. This has resulted in handsomely rewarding investors, as it is able to find a variety of lucrative investment opportunities.
The Quant Small Cap Fund has scored well on its risk-reward metrics. It has also registered extraordinary performance in recent years.
Axis Bluechip Fund
Bluechip funds provide stability in different market cycles. They also give regular income. You can build a decent corpus with these funds. However, you need to be cautious when investing. A blue-chip fund carries low risks and can offer excellent returns over a long period.
Many experts recommend these funds to first-time investors. But deciding which one is right for you depends on a number of factors. Some factors to consider are past performance, expenses, and risk profile.
The Axis Bluechip Fund (G) is a well-known equity fund. It has a relatively higher expense ratio. However, it offers high alpha and has outperformed its benchmark. Also, the Sharpe Ratio is significantly ahead of the benchmark.
The fund’s portfolio is a mix of large and mid-cap stocks. The top holdings include HDFC Ltd., Kotak Mahindra Bank, Avenue Supermarts, and Bajaj Finance.
The fund also invests in derivatives. It aims to outperform the benchmark. As of December 31, 2022, the fund held 46 stocks.
Although this fund has performed exceptionally well in the last few years, it has failed to keep up with its peers in the past year. While it has relatively low volatility in the large-cap segment, it has relatively high volatility in the mid-cap segment.
Kotak Equity Opportunities Fund
Kotak Equity Opportunities Fund invests in a diversified portfolio of stocks, which consists of midcaps and large-cap companies. It aims to provide investors with a stable and rewarding investment opportunity. Usually, the fund holds a well-diversified portfolio of 50 to 55 stocks.
The fund also focuses on investments in specific sectors, such as Information Technology, Engineering, Chemicals, Auto Ancillaries, Health Technology, Consumer Technology, Educational Technology, and Fintech. This strategy helps the fund to identify growth opportunities in a variety of sectors.
Over the past couple of years, the fund has been able to generate strong, risk-adjusted returns, compared to its benchmark. However, the stock market remains volatile. Therefore, investors should maintain a diversified investment approach and consult their financial advisers before investing.
As of June 30, 2022, the fund had a total of 60 stocks in its portfolio. Some of the top holdings in the portfolio include ICICI Bank, SBI, Infosys, Reliance Industries, and Coromandel International.
With a fund manager who has built a track record of generating outperformance over time, this is an option worth considering. If you have an investment horizon of at least five years, then this fund could be a good investment option for you.