Tips to become crorepati! SBI small-cap mutual fund has made many investors rich; Here is how

Your crorepati dreams can turn into reality. SBI Small-cap fund has delivered 17.51 per cent returns on investment thereby making many investors rich.

Asit Manohar | Nov 05, 2019, 09:08 PM IST

Tips to become crorepati: Every investor has the desire to generate the maximum profit from his investment in as short a period of time as possible. Investment advisors and experts make a living by selling ideas to make investors crorepatis, depending on the size and longevity of their investment. They also identify the opportunity and the source of creating this profit. So, according to tax and investment experts, SBI Small-cap fund has the potential to make an investor rich. Photo: Reuters

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SBI Small-cap last five-year return

SBI Small-cap last five-year return

In fact, it has made many investors rich in the last five years as the SBI Small-cap fund has delivered 17.51 per cent returns on one's investment. Generally, tax and investment advisors mark a mutual fund as an 'A Category Fund' if it delivers 12 per cent returns in long-term means more than 10 years. Since it is a mutual fund, one can invest through Systematic Investment Plan or SIP as well. Photo: Reuters

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Precautions while investing in SBI Small-cap fund

Precautions while investing in SBI Small-cap fund

Speaking on the last five year returns in SBI Small-cap fund Balwant Jain, a Mumbai-based tax and investment expert said, "The SBI Small-cap has given 17.51 per cent returns in the last five years. In fact, my favourite small-cap fund is SBI small-cap which was earlier known and SBI small and midcap fund." Photo: Reuters

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Risk appetite in SBI Small-cap fund

Risk appetite in SBI Small-cap fund

Balwant Jain said that small-cap mutual funds are for those investors who have high-risk appetite citing, "One should invest in small-cap funds when one has risk appetite coupled with risk-taking ability as well a time horizon of at least ten years to accumulate the corpus for the required goal." Photo: Reuters

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SBI Small-cap SIP can make you a crorepati

SBI Small-cap SIP can make you a crorepati

Assuming Balwant Jain's views on SBI Small-cap fund continue to deliver same returns in next 20 years via SIP mode, the SBI SIP Calculator reflects that if an investor invests Rs 4,943 per month or Rs 164.77 for 20 years, he or she can become a crorepati. We have assumed tepid growth in the SBI Small-cap by half a per cent in its last five years performance, which can enhance the acceptability of the return that an investor expects from a small-cap mutual fund."

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Returns on long-term small-cap mutual funds

Returns on long-term small-cap mutual funds

Speaking on the returns that an investor can expect from a small-cap mutual fund in long-term perspective Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "In a small-cap mutual fund investment for more than 15 years or maybe 20 years, the return one can expect will be at least 15-16 per cent and in case of better performing scheme, it can go up to 18 per cent as well." Photo: Reuters

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Should all long-term investments be in Small-cap mutual funds?

Should all long-term investments be in Small-cap mutual funds?

Not necessary. The choice of a particular product has to be based on various factors and not necessarily your time horizon for investing the money. Photo: Reuters

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Retirement fund can be raised through Small-cap funds

Retirement fund can be raised through Small-cap funds

Retirement has two phases. One is the accumulation phase and the other is utilisation phase. It is the accumulation phase during which you can invest in small-cap funds provided you have the required risk appetite and risk-taking ability. Photo: Reuters