BOI AXASMALL CAP FUND

  • Fund Type : An open ended equity scheme predominantly investing in small cap stocks
    Entry Load : Nil
    Date of Allotment : December 19, 2018
    Features : Liquity SIP Shield SIP SWP STP
  • Benchmark : Nifty Small Cap 100 Total Return Index
    Exit Load :
    • For redemption/switch out Upto 10% of the initial units allotted - within 1 year from the date of allotment: “NIL”
    • Any redemption/switch out in excess of the above mentioned limit would be subject to an exit load of 1%, if the units are redeemed/ switched out within 1 year from the date of allotment of units.
    • If the units are redeemed/switched out after 1 year from the date of allotment of units : “Nil”

Investment Objective

The investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity-related securities of small cap companies. However, there can be no assurance that the investment objectives of the Scheme will be realized.

Fund Manager

  • SAURABH KATARIA

    BCom(Hons.) from Delhi
    University MBA from
    ICFAI Business School.

    SAURABH KATARIA
    See detail
  • AJAY KHANDELWAL

    BE- MITS Gwalior
    MBA (Finance)- TAPMI

    AJAY KHANDELWAL  
    See detail

Fund Highlights

  • BOI AXA Small Cap Fund invests predominantly in equity and equity related securities of small cap companies.
  • Under normal market conditions, the fund will invest 65% to 100% of assets in a diversified portfolio constituting equity and equity related instruments of small cap companies with sustainable business models, and potential for capital appreciation.
  • The fund has the flexibility to invest upto 35% of its assets in equity and equity related instruments of companies other than small cap companies.

  • Click here for KIM
  • Click here for SID

Riskometer

This product is suitable for investors who are seeking*:

 

  1. Long term capital appreciation
  2. Investment predominantly in equity & equity related instruments of Small Cap companies.

*Investor should consult their financial advisor if they are not clear about the suitability of the product.

What makes Small Caps interesting?

Diamonds in the rough:
  • Exhibit higher returns as they remain out of the spotlight until they attain a noteworthy size in terms of revenues and profits.
  • Inefficiencies in price discovery mean potential for higher returns, typically lesser number of analysts track these companies, and the institutional ownership is lower vis-à-vis large caps.
A breeding ground for multi baggers:
  • Between 2013 to 2018, 25% (77 out of 333) of all companies in the small cap universe were 5 - baggers. (Source: BOI AXA IM research, Bloomberg)
  • Small caps have been defined as 251st company onwards in terms of full market capitalization. All remaining companies are Mid Caps or Large Caps.
The best category to invest :
  • Despite the recent sharp decline, the Small Cap Category continues to be one of the best performing categories among Equity Mutual Funds over the long run. (Refer Category Comparison Table below)

Why should you invest in Small Caps now?

Attractive time to enter
  • The recent under performance to Large Caps provides an attractive entry point to invest.
  • Small Caps are the undiscovered gems that have exhibited stark out performance over the years.
Short term volatility – Not exclusive for small caps
  • Small Caps are perceived to be more volatile, however, volatility is not exclusive to small cap investing.
  • Long-term volatility in small caps is not too different as compared to Large Caps and Mid Caps.

Category Comparison Table


#Past performance may or may not sustain in future

The Small Cap category returns have outperformed the BSE Small Cap Total Return Index, annualized returns (8.97%, 20.30%) over 3 years and 5 years as on October 31, 2018. (Source: Value Research)

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