Nifty Small Cap Index Fund

Nifty Smallcap Index Mutual Funds are passively managed funds that aim to replicate the performance of the Nifty Smallcap 250 Index, which consists of the top 250 small-cap companies listed on the NSE. These funds offer high growth potential but carry higher risk due to market volatility.

What are Nifty Small Cap Index Fund?

Nifty Smallcap Index Mutual Funds are passive investment funds designed to mirror the performance of the Nifty Smallcap 250 Index, which represents the 250 small-cap companies listed on the National Stock Exchange (NSE). Small-cap companies are typically those ranked 251st onwards in terms of market capitalization, making them smaller in size but often more dynamic and fast-growing compared to large and mid-cap firms.

The Nifty Smallcap 250 Index is well-diversified across multiple sectors like pharmaceuticals, industrial manufacturing, IT, and consumer goods, allowing investors to participate in emerging companies with significant growth potential. These funds are ideal for investors with a long-term horizon and a higher risk appetite, as small-cap stocks tend to exhibit greater volatility compared to large-cap or mid-cap counterparts.

Since these funds are passively managed, they have a lower expense ratio compared to actively managed small-cap funds, ensuring cost-effective exposure to the small-cap segment. However, investors should be prepared for short-term market fluctuations and invest with a mindset to benefit from the high growth opportunities that small-cap companies can offer over the long run.

Best Nifty Smallcap 250 Index Funds

List of the top-performing Nifty Smallcap 250 Index funds sorted by returns with their AUM and Expense Ratio.