Question 1

What is a small-cap fund?

Accepted Answer

A small-cap fund is an equity mutual fund that invests in companies ranked from 251st Company onwards based on market capitalization. These companies are generally smaller in size and have the potential to grow over time, but they may also experience higher volatility.Â

Question 2

What is Tata Small Cap Fund?

Accepted Answer

Tata Small Cap Fund is an open-ended equity scheme that primarily invests in small-cap companies. The scheme aims to generate long-term capital appreciation by identifying such small cap businesses that may have the potential to grow in terms of profitability and cash flows, while also focusing on strong balance sheets and reasonable valuations.Â

Question 3

How does a small-cap fund work?

Accepted Answer

A small-cap fund collects money from investors and invests it in equity and equity-related instruments of small-cap companies. The fund manager actively monitors market opportunities, company performance, and valuations to manage the portfolio. These funds may see higher fluctuations due to the nature of the underlying stocks but offer the potential for long-term capital growth.Â

Question 4

What are the benefits of investing in Tata Small Cap Fund?

Accepted Answer

The benefits of investing in Tata Small Cap Fund are as follows:

Potential for long-term growth through exposure to small-cap companies
Early-stage investment opportunity in evolving businesses
Diversified portfolio across sectors within the small-cap space
Professionally managed with research-driven stock selectionÂ

Question 5

What is the market capitalization of a small-cap fund?

Accepted Answer

According to SEBIs classification, small-cap companies are those ranked 251st and beyond in terms of full market capitalization. Small-cap funds are required to invest a minimum of 65% of their total assets in small-cap stocks.Â

Question 6

How to invest in Tata Small Cap Fund?

Accepted Answer

Investors can invest through the Tata Mutual Fund website, through registered mutual fund distributors, or through online platforms and apps.Â

Question 7

How to start SIP in Tata Small Cap Fund?

Accepted Answer

To start a Systematic Investment Plan (SIP) in Tata Small Cap Fund, investors can visit the Tata Mutual Fund website or use any SEBI-registered platform. Choose the SIP option, select the investment amount and frequency, and complete the e-mandate for automated deductions. You can start an SIP at Rs.100.Â

Question 8

Who should invest in Tata Small Cap Fund?

Accepted Answer

This scheme may be suitable for investors who:

Have a very high-risk tolerance
Are looking to invest with a long-term view (5 years or more)
Understand the volatility associated with small-cap stocks
Seek potential capital appreciation over long termÂ

Question 9

What is the checklist for investing in a small-cap fund?

Accepted Answer

Before investing, consider the following:

Investment horizon: Preferably long term (5 years or more)
Risk appetite: Ability to handle short-term market volatility
Investment purpose: Alignment with long-term capital growth goals
Understanding of the fund strategy and market segment
Past performance and consistency of the fundÂ

Question 10

How does SEBI regulate all small-cap funds?

Accepted Answer

SEBI mandates that small-cap funds invest at least 65% of their total assets in equity and equity-related instruments of small-cap companies. It also sets disclosure norms, risk management guidelines, and valuation principles to ensure investor protection, transparency, and fair practices across all mutual funds.Â

Key Measures**	Fund	Benchmark
Standard Deviation	16.01	18.93
Sharp Ratio	0.92	0.86
Portfolio Beta	0.68	NA
R Squared	0.69	NA
Treynor	1.81	NA
Jenson	0.31	NA

Portfolio Macauley Duration
Modified Duration
Average Maturity
YTM*	NA

				Current value of ₹10,000 invested
	Annualized (%)	Nifty Smallcap 250 TRIBenchmark(%)	Nifty 50 TRIAdditional Benchmark(%)	Annualized (%)	Nifty Smallcap 250 TRIBenchmark(%)	Nifty 50 TRIAdditional Benchmark(%)
Since Inception	24.49%	19.54%	14.62%	₹44,342	₹33,663	₹25,294
Last 5 Years	31.91%	28.86%	17.92%	₹39,907	₹35,498	₹22,786
Last 3 Years	22.59%	21.93%	12.49%	₹18,425	₹18,128	₹14,236
Last 1 Year	-5.58%	-8.65%	-2.01%	₹9,443	₹9,138	₹9,799

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