By amanved7595 
Introducing Tata Small Cap Fund
You may have noticed that some investors make the best returns from investments. Do you know what the secret behind their growth is? It is choosing Tata Small Cap Fund as an investment option.
It is a small-category equity fund that focuses on investing in small-sized companies. The fund managed by Tata Mutual Fund which is one of the respected asset management company in India. Although, Tata AMC provides many schemes but if your goal is to make high returns, then small cap scheme will be the top choice. It aims to provide higher returns to investors by investing in small companies.
Over the last few years, the fund has shown its strength by providing more than 27% returns in the last 5 years. Even small cap funds are considered a bit risky, the Tata small cap scheme still makes profit for investors. This is impressive but also builds curiosity to know the secret of its growth in mutual funds.
This article will give you a detailed understanding of Tata small cap mutual fund. In this guide, you will cover its investing strategy, fund management and why the fund is the best investment option for you. So keep reading to not miss anything.
What is the Tata Small Cap Fund Investing Strategy?
The Tata small cap mutual fund follows a high-growth investing strategy. It focuses on investing in small cap companies that have higher growth potential. Let’s take a deep look into it:
Individual Company Analysis : The fund focuses on analysing every individual company instead of following market trends. This helps to identify the profitable stocks that have a higher growth potential.
Portfolio Allocation : To make higher returns, the fund allocates 65% of its assets to small-cap companies. It also allocates 10%-20% of assets to large and mid cap companies to balance the performance.
Sectoral Diversification : The fund diversifies its portfolio into different sectors across various small companies. This approach makes it easier for the fund to maintain its performance in mutual funds while reducing the risk.
Active Portfolio Managemen : An expert team of fund managers regularly manages your portfolio and adjusts it when needed. It helps to reduce the risk and capture new market opportunities for higher growth.
This impressive investment strategy shows that the fund is not only focused on growth but also emphasizes reducing risk.
Who Manages Tata Small Cap Fund?
The SBI small cap scheme is managed by Mr R. Srinivasan. He has 30 years of experience in fund management and profitable stock selection. He joined SBI Mutual Funds in the year 2009 and currently serving as a Chief Investment Officer in the AMC.
The thing that makes Srinivasan different is his investment strategy and stock selection. He focuses on investing in quality companies that have high growth potential. He uses deep research and evaluates the market to identify the right stocks. Apart from stock selection, he believes in holding the investment for the long term. The reason behind this is to make high returns and manage losses.
His strategy is not only beneficial for investors but also plays an important role in Tata small cap fund NAV that growing over time. Over the past few years, he helped thousands of investors to make good returns.
Easiest Way to Invest in Tata Small Cap Fund SIP
Investing in the SBI small cap fund through systematic investment plan is a simple process. You can easily do it an SIP in the fund online by using these steps:
- Step 1: First, visit the website of SBI Mutual Fund to begin investment.
- Step 2: It will ask you to create your account. You can easily do it by providing your name, email and phone number.
- Step 3: Now you have to complete your KYC (Know Your Customer). You can complete your KYC by providing a few documents such as Aadhaar, PAN Card and Driving Licence.
- Step 4: Next you have to choose Tata small cap scheme as your investment option.
- Step 5: Next you have to select the investment plan. Simply choose SIP as your investment plan to start regular investing.
- Step 6: The last step is to make the payment via UPI or Internet Banking and you are investment is ready to generate returns.
By following this simple process, you can invest in the fund without any hassle.
What to Consider Before Investing in Tata Small Cap Fund?
As an investor, you can make your Tata small cap fund investment more profitable by considering these few things:
Risk Profile : The Tata small cap scheme focuses on allocating its large percentage of assets to small-cap companies. This helps to make great returns but also makes the fund higher volatile. So if you want to invest in the fund, then make sure to have a higher risk tolerance.
Net Asset Value : One of the major things you should consider as an investor is NAV. As you know market faces ups and downs. By checking the Tata small cap fund NAV before investing, you can know the best time to invest and identify investment opportunities.
Investment Horizon : To make higher returns and manage losses, the fund focuses on investing in the long term which takes time to generate higher returns. If you are planning to invest for at least 5-7 years, then investing in the fund can be beneficial for you.
Why it is Good to Invest in Tata Small Cap Fund?
As an investor, if you want to grow your hard-earned money then Tata small cap fund comes top on the list. Here’s why:
High Growth Potential : The fund gives you an opportunity to invest in small companies that have the potential to become large companies. By investing in these emerging companies, you can boost your investment in the future.
Active Fund Management : To adapt growth opportunities, the fund follows active management. A team of expert fund managers adjusts your portfolio regularly based on market conditions to help you make great returns.
Better Risk Management : The fund is known for managing market conditions and reducing the risk risk. It uses different strategies like diversification, portfolio adjustment, and bottom-up stock selection that help to reduce risk.
Final Summary
In short, the Tata small cap fund is a valuable investment choice to achieve long-term wealth. Its risk management strategy and investment in quality stocks makes it stand out. On one side where small cap funds are considered a bit risky, it is impressive that a fund is making a difference by providing growth and managing the risk effectively.
Another thing that makes the fund a great investment choice is the SIP plan. You can start your investing journey in the fund by investing a fixed amount at set times. So if you want to grow your money over time without investing a large sum, then this investment plan might be a great choice for you.
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