Which small-caps ought to I put money into?

I wish to put money into mutual funds (MFs) by way of a scientific funding plan (SIP). Please counsel a few good small-cap funds.

—Anthony Fernandez

Investing by way of month-to-month SIPs is one of the simplest ways to realize your medium and long run objectives, be it the training and marriages of your kids, retirement plans, and so forth.

Since you might be beginning your funding journey in MFs, do word that investing in a small-cap fund carries a better danger.

We’d additionally suggest you to separate your funding quantity in 5 SIPs of equal quantities. For instance, in case you are planning to take a position 10,000 each month, then it is best to divide this quantity in 5 SIPs of two,000 every. Your 5 SIPs ought to comprise of two large- cap funds, one mid-cap fund, and one flexi-cap fund, whereas the final one might be in a small- cap fund.

As for small-cap fund, you might select both of the next schemes: Kotak Small Cap Fund or Nippon India Small Cap Fund.

One other vital level to remember is that you should have a long-term time horizon of at the very least seven years or longer.

Rajiv Bajaj is chairman & MD, BajajCapital.

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