Introduction
Investing in small cap companies provides the opportunity to find hidden treasures. The Tata Small Cap Fund has been known for its reliability and trust and has the potential to become the market leaders of tomorrow. This fund allows investors to invest in high-potential growth companies. TATA is one of the largest asset management companies and manages this fund through Tata Mutual Fund.
In this article, you will get to know about its benefits, fund managers and much more.
What is Tata Small Cap Fund?
This small cap fund is managed by one of the biggest AMCs, Tata Asset Management Limited. It focuses on investing in small cap companies which are businesses ranked outside the top 250 in terms of market capitalization. This fund was launched on November 2, 2018. This fund primarily invests in two ways Tata small cap fund regular growth and Tata small cap direct growth. You can start SIP in this fund with just Rs.100. You can gradually increase the amount as per your investment goals.
Lets move towards the benefits that this fund provides.
What are the Advantages of Tata Small Cap Fund?
Tata small cap fund regular plan provides you with many benefits, some of which are:
Growth Potential of Small Cap Companies : Small cap companies are considered riskier than large cap companies, but they still present an opportunity for higher returns over the long run. Such companies have a lot of room for growth and success, which further makes them more attractive for an investor to pour their money into.
Diversified Stocks and Bonds : Instead of going through the trouble of mixing and matching this small cap company on one's own, the fund does it for the investor and provides them access to a diversified group of small cap companies. This mitigates the risk associated with putting money in a single small cap company and enables the investor to put their money with a great deal for profit.
Consistency : This small cap fund has consistently exceeded the benchmark by a remarkable margin year after year. The track record available shows that the company knows how to maneuver through market volatility and still ensure the best returns in the long term.
Ease Of Access : Even small time investors and beginners can take advantage of this fantastic opportunity as the fund can be accessed with a minimal SIP of Rs. 100. This allows investors who are hesitant to make large upfront payments to ease into investing.
Strong Brand Packing : As you know, it is managed by a strong mutual funds company that has the most reputed names in the financial industry. The benefits from a strong institutional framework and strong research capability make this fund more trustworthy and reliable for beginners as well as experienced investors.
About Fund Manager of Tata Small Cap Fund
The mastermind behind this fund is Mr. Chanraprakash Padiyar. He has an MBA in finance and a CFA from Symbiosis Institute of Business Management in Pune. He manages Tata small cap fund regular growth and before joining Tata Mutual Fund he worked with UTI Mutual Fund and Alchemy Capital Management Pvt Ltd. He manages the total fund size of Rs. 20,823 Cr. Which makes him a trustworthy and reliable person for the company.
Individuals seeking to build their wealth gradually will find the Tata Small Cap Fund regular plan growth to be one of the best small cap mutual funds. Here is the reasoning:
Investment Opportunities that Develop Over Time : When this small cap company is expanding its business and investing into new markets, the company has expansion growth possibilities with high returns for investors through significant long term investments. This company expansion comes in the early stages of their business and can provide them with substantial gains.
Engagement at All Levels : The active management of small cap investments tends to be very tricky and focused. Small cap fund manager Mr. Chanraprakash Padiyar managed a niche market and he is a small cap professional, so he happens to be a prolific investor and hence has effective management of the fund.
Balanced Asset Allocation : To achieve superior growth, the fund is not limited to certain sectors, which allows for better overall long term growth. Even if one sector of the industry performs poorly, other sectors will most likely be performing well, therefore balancing the fund’s overall returns.
After learning and understanding about this fund and its features, lets move towards the last segment of our article.
Who Should Invest in Tata Small Cap Fund?
Tata small cap fund small cap fund is a high-risk market for investment. So it is generally suitable for:
Long term investors : Investors with a long term outlook spanning 5 to 10 years or more are generally better positioned to ride out market downturns. Long term investment makes the funds growth more sustainable.
Risk Appetite : For those comfortable with higher risk the potential rewards of this small cap fund can be appealing, despite the possibility of short term losses. You can start SIP also to reduce the risk because in this the large capital does not required.
Fund Manager Expertise : Also, any investors looking to expand their equity holdings beyond large and mid cap stocks may find it worthwhile to dedicate some resources to small cap funds.
Finally, after learning about Tata small cap fund, Lets move toward the final segment of this article.
Conclusion
In short, this small cap fund belongs to those who dare to dream big. This fund provides trust and reliability to those who want to grow their money and make their portfolio profitable. You can also start SIP in these mutual funds this helps you to gradually increase your money and reduce risk because it does not require large capital to invest. If you want to complete your financial goals and boost your investment, then this fund is for you.
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