New Fund Offer: Tata Small Cap Fund

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Who Should Invest in Tata Small Cap Fund?

This scheme is best-suited to investors who seek:

• Capital generation through long-term investments.
• Investment in a portfolio that majorly consist of small-cap companies.
• High risk with their investments and can handle fluctuations in returns during the market volatility.

Basic Details of Tata Small Cap

Investment Philosophy Followed By Tata Small Cap Fund

1. Selection of only those stocks that have good fundamentals.
2. The stocks that are chosen must hold long-term growth opportunities, a strong market position, and should be a business with compounding benefits.
3. Stock must pass through the 5 evaluation steps, which are Efficiency in use of capital, Governance levels, Earnings growth prospects, valuations, and liquidity.
4. To generate returns that are better than the benchmark as well as the category’s average.
5. Close monitoring of macro economic factors and other major industry changes to take full advantage of the opportunities in the small-cap space.
6. Optimal risk management by diversifying investments across stocks/sectors, maintaining the liquidity, and there by regularly monitoring exposure limits.
   
   

Why Should You Invest in a Small Cap Fund?

• After the SEBI re-categorization, the small cap space has become a big one, as now large caps and mid caps only range between 1-250, and the rest have been marked as small-caps giving the fund managers a lot of options to choose from.
• In the past 10 years, the market-cap of small-caps have grown significantly. The 251st company of the stock market, which used to have a market cap of just Rs. 2,959 crores in Dec 2007, is now having a market cap of Rs. 10,019 crores, which is a growth of more than 300%.This show the growth potential that small cap space holds.
• A large number of these companies hold great future growth potential and have the tendency to become mid-caps or large-caps in the near future.

Conclusion

Tata Small Cap Fund is being launched at a time when the equity market was dealing at very lower levels. This will give the chance to fund managers to create a portfolio that holds high future growth possibilities, as the stocks are available at comparatively lower prices.
Also, the through research process for stock picking which will be followed by Tata Small Cap Fund and the optimal management skills of Mr. Chandraprakash Padiyar make it a great choice for investment right now.

To get the best benefits and for proper risk management, the experts of MySIPonline suggest you choose SIP mode of investment. The main reason behind this is the uncertainty that the market holds.

To make an investment in Tata Small Cap Fund, click on the link: NFO - Tata Small Cap Fund.

In case of any query, feel free to connect with the experts by dialing 9660032889.