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Reliance Small Cap Fund

Reliance Small Cap Fund is an open-ended equity mutual fund scheme belonging to Reliance Mutual Fund Family. Reliance Asset Management Company (AMC) for Reliance Small Cap Fund largely invests in equity and equity linked securities of companies of a small market capitalization, but with high prospects of high growth in the future. These small companies, comprising of startups and companies in initial growth stages, have a small base of clients and therefore earn less revenue than medium and large companies. Investments in smaller companies involve high or moderately high risks. However, it also implies that it generally generates high returns with much higher risk as compared to large and mid-cap focused funds.

Features of Reliance Small Cap Fund

  • Launch Date: Reliance Small Cap Fund was introduced on the 16th September, 2010 for subscription by Reliance Asset Management Company.

  • Fund Type: Reliance Small Cap Fund is an open-ended mutual fund. Therefore, an investor can invest in it or exit from it at any time throughout the year, as per their preference.

  • Minimum Investment: The minimum lump sum investment in the Reliance Small Cap Fund is Rs.5000 and further investments can be made in multiples of Rs.1.

  • Risk Category: Reliance Small Cap Fund involves moderately high risk and, hence, it offers considerably high returns. However, the fund performance cannot be guaranteed because they market-linked, which implies that they are exposed to the volatility of the capital market.

  • Returns since launch: Reliance Small Cap Fund has provided high returns of 20.30%, since its launch date. This is higher than the usual S&P BSE Small Cap benchmark.

  • Exit Load: It is mandatory for investors to pay an exit load of 1% on the total amount invested by him/her. The Reliance Small Cap Fund can be liquidated in the event of a switch or redemption of the fund units before the expiration of 365 days since the initial investment.

  • Exit Load Criteria: If in case, an investor exits the Reliance Small Cap Fund by liquidating or switching his/her units from this fund before the expiration of 365 days from the date of initial investment, he/she has to pay an exit load of 1% on the total investment that has been liquidated.

  • Fund Manager: The Reliance Small Cap mutual fund is managed by Mr. Samir Rachh, who has been the Fund Manager since January 2017. He is supported by Mr. Dhrumil Shah, who is the Co- Fund Manager since February 2018.

Investment Objective of Reliance Small Cap Fund

Reliance Small Cap Fund aims at achieving capital appreciation for investors in the long term by investing in equity and equity-linked investment instruments of small cap companies with a comparatively small market capitalization. Another objective is to generate consistent returns by investing in debt and money market securities. However, Reliance Mutual Fund does not assure investors that either or both of these criteria will be fulfilled.

As specified by the official website of Reliance Mutual Fund, the investment objective of Reliance Small Cap Fund 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.”

Direct Plans

As the name suggests, an investor invests in Direct Plans directly with Reliance Nippon Asset Management Company (AMC). As a result, additional charges like portfolio handling and brokerage fees, are not levied over and above the investment amount for units of Reliance Small Cap Fund. Since the NAV for Direct Plans of Reliance Small Cap Fund are generally higher than that of Regular Plans, the returns are also comparatively greater due to the lower management charges. The variants of the Direct Plan of Reliance Small Cap Fund are Growth, Dividend, and Bonus.

Regular Plans

In case an individual investor decides to invest in Reliance Small Cap Fund through a broker, this plan is for him/her. This involves additional charges like brokerage and portfolio management, raising the investment cost in Reliance Small Cap Fund units. Regular Plans of this fund are priced lower than the Direct Plans. Further, the NAV is also lesser than that of Direct plans and, hence, the returns are also comparatively lower. The variants of this plan are Growth, Dividend, and Bonus.

Institutional Plans

This is applicable solely for institutional investors aiming to diversify their investment portfolio. This is completely different from what is offered by the Regular and Direct Plan of Reliance Small Cap Fund that is meant for individual investors. However, the Institutional Plan also offers variants like Growth, Dividend and Bonus.

Lump sum/SIP

Like any other mutual fund investment, Reliance Small Cap Fund, offers their investors the flexibility of investing either through a lump sum amount or through an SIP (Systematic Investment Plan). This option is applicable only to individual investors.

Investing in Reliance Small Cap Fund

An investor who is of at least 18 years old and can comply with the KYC requirements as mandated by SEBI, is eligible to invest in the Reliance Small Cap Fund. Also, institutional investors who seek to make diversified investments can also purchase units of the mutual fund, provided they qualify for the applicable criteria. Foreign individual investment is not permitted in this scheme. The Fund Manager(s) of Reliance Small Cap Fund aims at achieving the following:

  • The primary objective is to generate capital appreciation through investments in small cap companies to enable investors to enjoy as high returns as possible.

  • Small cap companies, apart from belonging to small market capitalization, should also be featured in the S&P BSE Small Cap funds.

  • The purpose of investing in small cap companies is to invest in mid cap companies in the future at reasonable rates.

  • Reliance Small Cap Funds identify and invest in small cap companies that show great prospects of future growth. Besides, these companies also have to meet certain criteria related to their size, management and current valuation.

  • It follows efficient risk management through measures like stock diversification and maintaining a certain safety margin. This ensures a healthy balance between calculated risk and steady growth.

Top Holdings of Reliance Small Cap Fund

Reliance Small Cap Fund aims to maintain balance in the mutual fund portfolio by investing primarily in multiple small cap companies across sectors to avert risks. The following are some of the leading sectors that Reliance Small Cap Fund invests in, as per October 2018 statistics:

Performance Details of Reliance Small Cap Fund

Type of Reliance Small Cap MFCategory1-Y Return %3-Y Return %5-Y Return %
Reliance Small Cap Fund - Direct Plan (G)Growth-5.316.432.2
Reliance Small Cap Fund (D)Dividend-14.225.1163.7
Reliance Small Cap Fund - Direct Plan (D)Dividend-12.726.4156.5
Reliance Small Cap Fund (G)Growth-6.415.130.8

How to apply

There are two ways in which you can invest in Reliance Small Cap Funds – online and offline.

  • Offline Application for Reliance Small Cap Funds: If you want for the offline option for investing in Reliance Small Cap Funds, you can visit any branch of Reliance Mutual Funds, fill up the relevant application form available at all branches and submit them there, along with the essential documents as proofs of your identity and address. Locate the Reliance Mutual Funds branch closest to you here.

  • Online Application for Reliance Small Cap Funds: If you prefer investing in Reliance Small Cap Funds online, these are the options you can choose from:

  • Website: Visit their official website or click here to be directed to the relevant page. Registered users can login by entering their Username and Password. New investors can either create a new account for themselves or invest without logging in by simply entering their PAN number.

  • Mobile app: All you need to do is download the Reliance mutual Funds mobile app and get started with investing in Reliance Small Cap Funds.

  • SMS: You can send an SMS to 966 400 1111, changeable at standard SMS rates, and expect a call back within the standard response time of 10 minutes.

  • Call Center: Investors can dial 1800-300-11111 to reach out to their call center and ask for guidance regarding investments in Reliance Small Cap Funds.

  • Online Application Form: All Application Forms related to mutual fund investments in Reliance Small Cap Fund are available online. You can click here to access and download them.

  • Online Advisor: You can get in touch with an Advisor through the official website of Reliance Mutual Fund to assist you with your investments in Reliance Small Cap Funds. Alternately, you can click here to access the relevant page. All you need to do is select the ‘Advisor’ option, enter your city name, area/pin code and the captcha provided to generate an OTP (One Time Password) at your registered mobile number or email id. Enter this OTP accurately to contact your Advisor.

You can also invest in Reliance Small Cap Funds online through stock exchange platform or Reliance Any Time Money Card.

FAQs on Relaince Small Cap Fund

What is Reliance Small Cap Fund?

Reliance Small Cap Fund is an open-ended equity mutual fund scheme belonging to Reliance Mutual Fund. Reliance small cap fund largely invests in equity and equity linked securities of companies of a small market capitalization but with high prospects of high growth in the future. These small companies, comprising of startups and companies in initial growth stages, have a small base of clients and therefore earn less revenue than medium and large companies. Investments in smaller companies involve high or moderately high risks. However, it also implies that it generally generates high returns with much higher risk as compared to large and midcap focused funds.

Should I invest in Reliance Small Cap Fund?

Reliance Small Cap Fund scheme is an effective investment instrument for investors with a high risk appetite. Since this is a small cap fund, it is accompanied by high risks. However, high risk also means that it usually generates potentially high returns in the long term. The goodwill of a renowned investment company like Reliance Mutual Fund is one of the primary factors that make investing in Reliance Small Cap Fund a wise investment option. This is because of having tested the waters of the volatile capital market emphasizes on it being a good investment. What’s more, good historical performance of Reliance Small Cap Fund and its high estimated future returns, further make it a great investment for investors with a high risk appetite.

What is the new name of Reliance Small Cap Fund?

There is no change in the name of Reliance Small Cap Fund.

What is small cap fund?

A small cap mutual fund scheme invests in companies of a small market capitalization. This includes startups and companies in their initial growth phrase. Hence, they have a small client base and earn less revenue as compared to medium and large companies. However, these small companies show great prospects for achieving high growth in the future. Investing in these small cap companies involve high risks, since their growth and success cannot be guaranteed. But, as these companies are accompanied by high risk, the scope of generating high returns is also greater.

How can I buy Reliance Small Cap Fund Online?

For the online method of investing in Reliance Small Cap Fund, you can choose from one of these available options – official website of Reliance mutual Fund, SMS, mobile application, online application form and online advisor.

What are mid and small cap funds?

A small cap fund invests in small companies of small market capitalizations, but show great scope of achieving high growth in the future. Since the future growth of these small companies cannot be guaranteed, such investments involve moderately high risk. However, they have the potential of generating potentially high returns in the long run. Mid cap funds invest in companies of medium size and, therefore, are accompanied by moderate risk and healthy returns by staying invested over a long term.

How to select a small cap fund?

Consider the following while deciding on the small cap fund that you can invest in:

  • Historical and expected performance of the fund in the future

  • Age of the small cap fund scheme

  • Corpus size

  • Expense ratio

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