An investment option for long-term investors who are willing to take the risk and look for returns that beat inflation over the long term are equity mutual funds. Even though financial gurus recommend investing in equity mutual funds for more than five years, the funds can provide huge returns in the short term depending on the market conditions. For example, Quant Small Cap Fund Direct Plan-Growth from Monthly SIP from 10,000 7.5 lakhs during the three years, as the fund has earned a huge return of more than 54% in the last 3 years.
Quant Small Cap Fund Direct Plan – Growth Return
Quant Small Cap Fund Direct Plan – Growth Return has been 12.24% over the past one year, and since its inception the fund has generated an annual average return of 15.48%. If monthly SIP 10,000 was put in this fund five years ago, now it would have increased to approx. 14 lakh as the fund’s five-year return of 34.71 per cent was better than the category average of 23.27 per cent. One Monthly SIP 10,000 invested in this fund three years ago would have grown to approx. 7.5 lakhs, as the fund has given an annualized return of 54.13% over the last three years, which is higher than the category average of 34.50%.
The fund has given an annual return of 36.68 per cent in the last two years, which means that the investment of 10,000 per month invested in the fund two years ago would currently be worth approx. 3.55 lakhs. According to the results, the fund is indicating that it has doubled the money invested in it every two years. The fund has the benchmark index of Nifty Smallcap 250 TRI, and the index has grown by over 7% in 1 year, which is much less than the fund’s annualized return of 12%.
Key Highlights of Quant Small Cap Fund Direct Plan-Growth
The fund was launched on 01-January-2013 and currently, the fund enjoys 4-star rating from Value Research and 5-star rating from Morningstar. As on June 30, 2022, Quant Small Cap Fund Direct Plan-Growth has Asset Under Management (AUM) 1910.75 crores, and as on August 24, 2022, the NAV of the fund was 136.5. The expense ratio for the fund is 0.62%, which is lower than the majority of other funds in the same category. The consumer goods, services, health care, financial and construction industries are represented in the fund’s sector allocation. ITC Limited, IRB Infrastructure Developers Limited, ICICI Bank Limited, Hindustan Copper Limited, and Linde India Limited are the top 5 holdings of the fund.
The fund invests 99.25% of its investments in domestic equities, 23% of that amount in large-cap companies, 8.18% in mid-cap stocks and 68.07% in small-cap stocks. The fund has a standard deviation of 23.93 which is higher than the category average of 20.03 and the fund has a beta ratio of 0.92 which is higher than the category average of 0.81 indicating that the fund appears to be risky. However, the fund’s Sharpe ratio is 1.5 points higher than the category average of 1.08, and its gestation alpha ratio is 17.08 points higher than the category average of 6.94, indicating that although the fund carries a high degree of risk, it has a higher level of risk. There is also a level of risk. Ability to generate risk-adjusted returns.
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