axis small-cap fund direct

Choosing a small-cap fund is a difficult decision in itself. You don't have to invest everything in it and expect high returns. When it is much more prudent to balance a portfolio than to put all the eggs in one basket.

Axis Small Cap Fund is a fund with equity. It falls under the category of 'small-cap,' where the portfolio invests in small-cap enterprise shares. This is highly risky compared to other types, such as large equity funds. But they are more likely to return due to high risk.
  • It is a wise decision to invest in Axis Small-Cap Fund Direct and the investment has a lot of benefits.
  • This type of fund is ideal for high-risk investors, long term goals, and long term investments.
  • Axis Small Cap Funds have given excellent results in the last three years in their category.
On a long-term basis, all small-cap funds perform equally with minimal inequality. While Axis small-cap fund direct may have achieved better returns in the last 1-2 years, HDFC Small Cap has given better returns over the previous three years, and Reliance Small Cap in the previous five years. Around 15% -17% on average, you should get good returns based on its past performance.

It is ideal for long-term investors

The Axis Small Cap Fund Direct-Growth is a small-cap equity fund investing 81.88 percent in Indian stocks, 13.69 percent in mid-cap stocks, 62.83 percent in small-cap stocks, and is best suited for long-term investors.
  • This fund invests in small market capitalization companies - Small-cap funds invest in small-market capital companies, which are in growing businesses or startups. While these businesses have great potential for future growth and can achieve good returns on investment, these companies have high volatility in returns.
  • Minimize the impact of market volatility on your returns - Investors who are planning to invest in small-cap funds or if they are already investors in small-cap funds are also advised to continue their investments for an extended period of about five years. The investment will enable you to reduce the market impact. Helps you reduce the effect of market volatility on your returns, the more you invest in the equity market, and the more likely you are to earn good profits.
  • Invest for long term goals - For long-term goals such as higher education for children, retirement plans, approving mid-term loans, a small-cap fund have to be chosen. To reduce the risk, you can invest in a small-cap fund in SIP mode for 7-10 years.
  • Provide better returns - The returns for a year are around 8.6 percent, which is very good, given the volatile market, and the returns are better than bank FDs.


If you are choosing any small-cap fund, then it means that you are ready to take a high risk with long term investment horizon. As long as you invest in small-cap funds, it would help if you did proper research.