About DSP Smallcap Fund
DSP Smallcap Fund is an open-ended equity scheme primarily investing in the stocks of small-cap companies.
The investment objective of the scheme is to provide long term capital appreciation to the investors by making investments in a diversified portfolio of equity & equity-related securities of small-cap companies. Also, the fund manager will take exposures in stocks of companies of other categories to achieve an optimal portfolio construction.
The Benchmark of the scheme is S&P BSE Small Cap Index TRI.
|Minimum Application Amount||Rs.500 & any amount thereafter|
|Minimum Additional Investment||Rs.500 & any amount thereafter|
|Type||Minimum Amount||Minimum Installments|
|Monthly||Rs.500 & in multiples of Rs.1 thereafter||6|
|Quarterly||Rs.500 & in multiples of Rs.1 thereafter||6|
Entry Load: Nil
If units are redeemed or switched out within 1 year - 1%
If units are redeemed or switched out after 1 year - Nil
DSP Smallcap Fund is suitable for investors with a high-risk appetite and looking to invest for a period of 7 years & above.
As the fund predominantly invests in equity securities, DSP Smallcap Fund has the taxability of an equity mutual fund scheme. Following taxation is applicable:
- If the units are sold after 1 year, then the gains on investments are treated as Long Term Capital Gains (LTCG). LTCG of up to Rs 1 lacs in a financial year is tax-free and above that, it is taxed at the rate of 10% without the benefit of indexation.
- If the units are sold within 1 year, then the gains are treated as Short Term Capital Gains (STCG) and are taxed at the rate of 15%.
DSP Smallcap Fund’s Asset Allocation
Under normal conditions, the pattern of asset allocation is as follows:
|Assets||Minimum indicative allocation (% of total assets)||Maximum indicative allocation (% of total assets)||Risk Profile|
|Equity & Equity related securities of small-cap companies||65||100||High|
|Equity & Equity related securities of Top 250 companies in terms of market capitalization||0||35||High|
|Debt & Money market instruments||0||35||Low to Moderate|
|REITs & InVITs||0||10||Moderate to High|
Who should invest?
Small cap funds are those equity mutual funds that invest in equity & equity-related securities of the companies beyond the top 250 companies in terms of market capitalization.
These companies have small market shares but aim to come out with innovative products which could disrupt the market through their qualitative offerings. These stocks carry the potential to become midcaps and later, large-caps by gaining market share over time.
Investments in DSP Smallcap Fund can be made by investors who want to invest in small businesses having the potential to deliver good returns over longer periods. The small size of the underlying holdings makes investments in these funds relatively risky & more volatile as compared to investments in other equity fund categories.
Investors with a high-risk appetite looking to invest in equity funds for a long investment horizon could consider investments in this fund. The fund can be a good investment for a diversified equity portfolio.
Eligibility - Who can invest?
The following people are eligible to invest in this scheme:
- Indian Resident Adults (single holder or on a joint basis)
- Hindu Undivided Family
- Partnership entities
- Limited Liability Partnership units
- Minor through parent or a legal guardian
- Sole Proprietor
- Corporates, PSUs & others.
- Banks & Financial Institutions
- Religious & Charitable Trusts
- Defense & paramilitary units
- Foreign Portfolio Investors
- Pension/Provident/Gratuity Funds
- Trustee, AMCs or Sponsors
- Other schemes of DSP or other mutual funds
- Alternative Investment Funds
How to invest?
You can invest in DSP Smallcap Fund through any AMFI distributor, AMC, banks, or third party platforms. If you need any help with your investments, you can reach out to our ZFunds Experts on Whatsapp - 7217746224.