Nifty Small Cap 250 Index::Nifty Small cap 250 index Fund

Nifty Small Cap 250 Index:Nifty Small cap 250 index Fund

Nifty Small Cap 250 Index

Small-cap stocks are 251 to 500 companies as per their Market Capitalization. In India, SmallCap stocks have a capitalization of less than 5000 crore. They are more volatile as compared to large-cap and mid-cap stocks. Small-cap stocks have high growth potential. You can expect multi-bagger returns from performing Small CAP stocks. Investment in small-cap stocks is sometimes risky. You can lose your complete capital too. It is mainly for high-risk appetite investors. Investors who are ready to take extra risk for higher returns should invest in small cap Stocks.

The Nifty Small Cap 250 index represents 250 small-cap companies from 251 to 500 out of the Nifty 500. This index will measure the performance of these 250 small-cap companies. This index represents about 8% of the free float capitalization of stocks listed in the NSE. There are a total of 22 sectors identified in NSE. The Nifty Small Cap 250 index has a representation of 21 sectors from it. It is very well diversified across all sectors

Nifty Small Cap 250 Index::Nifty Small cap 250 index Fund — **Nifty Small Cap 250 Index**

Good Investment option.

Direct investing in individual small-cap stocks is very risky. You have to study every aspect of individual stocks. Even after thorough research about stock, there is no 100% guarantee of multi-bagger returns. The best and safest investment strategy for investing in small-cap stocks is via Index mutual funds. Investors can invest in Nifty Small Cap 250 index funds. There are numerous advantages of investing in Nifty Small Cap 250 index funds. It will be automatically diversifying your investment in 250 small-cap stocks. Also, your investment gets exposure to 21 different sectors. If you invest in the complete Nifty Small Cap 250 index, The chances of heavy loss is minimized to a large extend. Even if you make a loss in 4 / 5 stocks. Other small-cap stocks’ performance will nullify the losses. You will invest in every performing small-cap stock.

Returns of Nifty Small CAP Index:-

This index was launched by NSE on 1^st April 2016 with a base value of Rs. 1000. The Calculation frequency of this index is Read time. As of 05.04.2024, it is trading at about 15,268. The following chart will give you an idea of the yearly returns given by this index.

1 Year

5 Year

Since Inception

Nifty
Small Cap 250 Index return

64.15

22.54

16.44

Best of Nifty Small Cap 250 Index Funds.

There are many index funds available for investing in the Nifty Small Cap 250 Index. Investors can choose the MF of any well-known AMC. All index mutual funds will give almost similar returns. The expense ratio index fund is much less as compared to an active mutual fund. Investors should choose a mutual fund of standard AMC. The exit load of all AMC is almost NIL.

1..Nippon India Nifty Smallcap Index Fund

Fund
Size

Expense
Ratio

Return

(1Year)

Return

(3
Year)

Exit
Load

1,197 Cr.

0.32

70.64 %

29.74 %

NIL

2.. ICICI Prudendial Nifty Smallcap 250 Index Fund

Fund
Size

Expense
Ratio

Return

(1 Year )

Return

(3 Year)

Exit
Load

260 Cr.

0.30

70.85 %

NIL

3.. SBI Nifty Smallcap 250 Index Fund

Fund
Size

Expense
Ratio

Return

( 1 Year )

Return

(3 Year)

Exit
Load

606 Cr.

0.41%

70.64 %

0.25% If redeemed within 30 days

4.. HDFC Nifty Smallcap 250 Index Fund

Fund Size — 136 Cr.. New Fund. Not Completed 1 Year from inception.

5.. Groww Nifty Smallcap 250 Index Fund

Fund Size – 38 Cr. Just Launched. Not completed even 6 months.

Conclusion:-

Investing in Nifty Small Cap 250 Index funds is a good investment option for high-risk appetite investors. It will minimize the risk of investing in small-cap stocks. Investments get diversified in 250 small-cap stocks across 21 sectors.

The reader will also like to read about the following topics

1. Fundamentals of stock

2. Basic of Future and option

3. PE Ratio

4. Nifty vs Sensex

5. Bull vs Bear Phase in Stock Market

6 . XIRR vs CAGR vs Absolute Return

7. Home