Review : Reliance Small Cap Fund

Good Value Small Cap Funds becomes the MultiBaggers in the Future.There are so many Small Cap Stocks which will become Large Cap in the future.History says Small Caps will take longer time around ( 5 to 10 years Horizon) to become the good growth large cap stocks.

Examples are :
Aban Offshore
Titan Industries
Shriram Transport etc..

Investment Style

With an endeavor to maximize returns & minimize risks by reasonable diversification, primary focus

 would be on small cap stocks.

 Investment in Equities of Small Cap Companies : 65%-100%

 Investment in Equities of any other Companies : 0%-35%*

 Investment in Debt & Money Market Securities : 0% - 35%*

1. Small cap stocks, for the purpose of the fund are defined as stocks whose market capitalization is in between the highest & lowest market capitalization of companies on BSE Small Cap Index.
2. Investment with a longer term horizon.

Till now we have so many Midcap Funds or MidCap & SmallCap mixed mutual funds.

Reliance started the first of its kind purely Small Cap Fund.

Investment Objective	The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies and the secondary objective is to generate consistent returns by investing in debt and money market securities
Nature of the Scheme	An Open Ended Equity Scheme
Benchmark	BSE Small Cap Index
Proposed Asset Allocation	Equity & Equity Related Securities of small cap companies including derivatives# - 65%-100% Equity & Equity Related Securities of any other companies including derivatives# - 0%-35% Debt & Money Market Securities ** 0% - 35% ** including securitized debt upto 30% # The Scheme proposes to invest at least 65% of the corpus in Equity & equity related instruments of small cap companies which may go upto 100% of the corpus. The investment in Equity & equity related instruments of any other companies other than small cap companies will be in the range of 0-35% of the corpus.
Fund Manager	Sunil Singhania
Choice of Plans/Options	Growth Plan: Growth & Bonus Option Dividend Plan : Dividend Payout Option & Dividend Reinvestment Option
Minimum Investment	Rs. 5000 & in multiples of Re 1 thereafter
Load Structure (During New Fund Offer & Continuous Offer including SIP Installments)	Entry Load* : Nil
	Exit Load :
	2% If redeemed or switched out on or before completion of 12 months from the date of allotment of units 1% If redeemed or switched out after 12 months but on or before completion of 24 months from the date of allotment of units Nil If redeemed or switched out after the completion of 24 months from the date of allotment of units *In accordance with the requirements specified by the SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009 no entry load will be charged for purchase / additional purchase / switch-in accepted by the Fund with effect from August 01, 2009. Similarly, no entry load will be charged with respect to applications for registrations under systematic investment plans/ systematic transfer plans accepted by the Fund with effect from August 01, 2009. .