In a dynamic universe of investing, opportunities come and go. You must have a strategy to capture the moment when it presents itself. That is where Small Cap Funds come in. Since Small Cap Funds tap into the potential of young and promising companies, you get the benefit of their growth if you stay invested long enough.
UNDERSTANDING THE CONCEPT OF MARKET CAPITALISATION SHALL MAKE IT EASIER TO KNOW SMALL CAP FUNDS
Market capitalisation is the aggregate value of a company which is derived by a multiplication of the total number of outstanding shares with the current price. For instance, if a company has 30 Lakh shares which are currently being traded at a market price of Rs.1,000 each, then the market capitalisation of the company is as illustrated below:
3,000,000 X 1,000 = Rs.300 CR
What is a Small Cap Fund?
Small Cap Funds are Open-Ended Equity Schemes that invest a minimum of 65% of its assets in Equity and Equityrelated instruments of Small Cap companies. As defined by SEBI, 251st company onwards by full market capitalisation are defined as Small Caps.
What Makes Small Cap Funds Lucrative?
What You Need to Know About Taxation
Tax on Dividends
Capital Gains Tax
Who Can Invest?
Small Cap Funds are a good option for investors who are –
Small companies offer value and growth. Besides, a Mutual Fund's professional Fund Managers team offers you the benefit of handpicked, fast-growing companies. To make long-term investments at reasonable costs, speak to your Mutual Fund Distributor to choose the right Small Cap Fund for you today.