Mutual funds: Equity small-cap index plan offers 100% return in 2.5 years

Mutual funds: Despite world economic system reeling beneath the warmth of upper inflation and Covid-19-related strain, Indian fairness market has delivered stellar return to its traders. This record of fairness funding consists of mutual fund investments as properly. In final two and half years, Motilal Oswal Nifty Smallcap 250 Index Fund Direct Growth plan — an fairness small-cap index fund, has doubled its traders cash on this interval.

As per the Motilal Oswal Nifty Smallcap 250 Index Fund Direct Growth efficiency desk, internet Asset Value or NAV worth has surged from ₹10 (sixth September 2019) to ₹20.07 apiece right this moment, logging greater than 100 per cent rise on this time-frame. So, if an investor had invested a lump-sum quantity on the time of this small-cap index plan inception, its cash would have doubled on this interval.

Alpha return for traders

This mutual funds fairness small-cap index plan has been producing alpha return for its traders since its inception on sixth September 2019. In final one yr, it has generated close to 26 per cent absolute return for its traders whereas class common return on this interval stands at 12.20 per cent. However, in final two years, this mutual fund plan is highest return giving plan in its class. In final one yr, it has delivered 105.75 per cent absolute return in opposition to the class common return of round 43.50 per cent. Since inception on sixth September 2019, this mutual funds fairness small-cap index plan has generated greater than 102 per cent absolute return in opposition to the class common return of close to 32.50 per cent.

Return for mutual funds SIP traders

For these mutual fund traders, who invested in Systematic Investment Plan (SIP) mode in Motilal Oswal Nifty Smallcap 250 Index Fund Direct Growth plan, this fairness small-cap index plan has generated round 4.70 per cent absolute return and eight.85 annualised return in final one yr whereas in final two years, it has given greater than 50 per cent absolute return and round 45 per cent annualised return to its traders.

Here we record out vital particulars of this mutual fund scheme:

– Fund Manager: Swapnil P Mayekar;

– Expense ratio: 0.31 per cent as declared on thirty first December 2021 (class common is 0.27 per cent);

– Benchmark: Nifty 50;

– Minimum one-time funding quantity: ₹500;

– Minimum SIP quantity: ₹500; and

– Lock-in interval: No lock-in interval.

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