Tata Small Cap Fund: Investing in mutual funds can be a smart way to grow your wealth faster than traditional bank savings. One such opportunity is the Tata Small Cap Fund Regular Growth, offered by Tata Company. This mutual fund primarily invests in small-cap companies in the stock market, known for potentially high returns though with higher risks.
Over the past years, this fund has shown impressive growth rates: a staggering 44% return in the last year alone, and around 27% over the last 3 and 5 years since its inception. As of May 31, 2024, the fund size stands at approximately Rs. 7083 crore.
What makes this fund attractive is its accessibility. You can start investing with as little as Rs. 5000 initially, and continue with just Rs. 1000 for additional investments. Even better, you can begin a Systematic Investment Plan (SIP) with as little as Rs. 100 per month.
Now, let’s break down the potential: if you invest just Rs. 790 per month in this fund and it continues to perform similarly to its historical returns of 27%, you could accumulate around Rs. 1,00,528 in 5 years. This amount includes Rs. 47,400 of your contributions and Rs. 53,124 in interest.
However, it’s crucial to note that mutual funds, especially those focusing on smaller companies, carry risks. While they offer the potential for higher returns, they can also be volatile. It’s essential to consider your risk tolerance and conduct your own research or consult with a financial advisor before making investment decisions.
Remember, this article serves as educational information and not as professional investment advice. Your financial choices should align with your personal circumstances and comfort level with risk.