The returns from mutual funds depend on the stock market. Therefore, people used to avoid investing in them. However, given the attractive returns offered by mutual funds today, everyone wants to invest in them.

Today, using an SIP calculator, we will understand how long it would take for someone to build a fund of ₹1 crore with a monthly SIP of ₹5000.

Calculation:
Investment amount - ₹5000 per month
Investment return - 12 percent

If a person wants to build a fund of ₹1 crore with a monthly SIP of ₹5000, they would need to invest for 26 years at a 12 percent return rate. In these 26 years, you will receive ₹10,800,000. Your principal investment will be ₹1,560,000.

Accordingly, your return over these 26 years could be ₹9,240,000. This return may vary.

What is a Small-Cap Fund?
A small-cap fund primarily invests in the equity and related securities of small companies or small-cap companies. Small-cap companies are those ranked 251st or lower. These companies may have a market capitalization of less than ₹5000 crore.

Benefits of investing in Small Cap Funds:
Because these companies are currently small, they have a higher potential for future growth. However, investing in these companies also carries a higher risk. Now let's talk about the small-cap funds that have given the best returns in the last 5 years.

Which funds gave the highest returns in 5 years? Name    AUM    Expense Ratio    CAGR 5Y.
Quant Small Cap Fund    30169.7063    0.77    30.14082084
Nippon India Small Cap Fund    68571.851    0.63    27.65221078
Bandhan Small Cap Fund    18173.8513    0.42    27.32862991
Invesco India Smallcap Fund    8999.3331    0.4    26.9973826
Edelweiss Small Cap Fund    5330.1713    0.43    25.6057984
HDFC Small Cap Fund    38020.3127    0.67    25.35470112
HSBC Small Cap Fund    16202.8301    0.64    25.1562594
Tata Small Cap Fund    11409.73688    0.34    24.83695578
Canara Robeco Small Cap Fund    13060.3702    0.46    24.63660162
Bank of India Small Cap Fund    1981.5898    0.53    24.39765879
Please note that past performance is not necessarily indicative of future results. Choose your fund carefully.

(Disclaimer: The information provided here on mutual funds is not investment advice. Jagran Business is not providing investment advice. Mutual funds are subject to market risks, so consult a certified investment advisor before investing.)

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