Dear Sree.,
This question is connected with my earlier question asked two ago.,
I am in the process of selectiong ONE small cap fund ( exclusive small cap) among the following
- Reliance Small Cap
- Sundaram SMILE
- Both funds are with same bench mark Index
- Reliance ( 2010) with Assets 4,372 Cr & Sundaram ( 2005) with Assets 1,242
- Exp ratio - Reliance ( 2.02) & Sundaram 2.45
- Returns compared for 5yrs,3yrs & 1 yr ( Reliance is better)
3 Answers
Dear KK,
How about Franklin Smaller Companies Fund?
Have you compared the above two funds along with this one? Do kindly check out the risk ratios as well...
(You can do a comprehensive comparison and analysis at valueresearchonline.com portal)
Kindly read :
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
Dear KK,
Below is my reply to your PRIVATE query..
The investment objective of Franklin Smaller Cos fund is " to provide longterm capital appreciation by investing in mid and small cap companies.'
So based on the market conditions / factors, the Fund manager may allocate higher corpus to mid-cap stocks, hence it may or may not be a pure small cap fund, may be one of the reasons to opt for mid-cap based benchmark.
Whereas the objective of Reliance small cap is ;
"The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies and the secondary objective is to generate consistent returns by investing in debt and money market securities."
Franklin fund has 45% allocation to small cap whereas Reliance fund has around 67% allocation..
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