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Written by Nikita Rao » Updated on: June 02nd, 2025 134 views
Are you looking for an investment that starts small but holds the potential for big growth over time? If yes, the AXIS Small Cap Fund might be what you need. The fund, which is managed by Axis Asset Management Company (Axis AMC), focuses on small-cap companies, which are smaller in size but have great potential for rapid growth. Through an established and professionally handled fund, it offers investors an opportunity to take part in India's future market leaders.
Established on November 5, 2013, the AXIS Small Cap Fund-Regular Growth has constantly established a strong performance history. This fund has low entry, which is what makes it more attractive. With just Rs100, you can start investing through a Systematic Investment Plan (SIP) or a lump sum. Due to this, both beginner and experienced investors may utilize it.
In this article, we’ll explore whether the AXIS Small Cap Fund fits your financial goals, how it has performed over time, and why many consider it one of the Best SIP options for long-term growth.
The AXIS Small Cap Fund Regular Growth is crafted to help investors grow their money through long-term appreciation. It does this by investing in small-sized companies that have strong potential to grow rapidly. These are often new or developing businesses that can expand over time.
The fund spreads the investment across different sectors & companies (this is called diversification) to reduce risk and improve the chances of consistent growth. The main aim is to achieve capital appreciation, which means increasing the value of your investment over a period of time.
The AXIS Small Cap Fund has performed well over the years and delivered impressive returns:
These numbers show how the fund has helped investors grow their capital, especially if for the long term they invested for 3 to 5 years or more.
These rolling returns show that the fund has been consistent in delivering strong results over different periods.
The fund has outperformed its benchmark (Nifty Small Cap 250) during certain periods.
It has shown lower volatility compared to similar small-cap funds.
It also has a higher Sharpe ratio, which indicates better returns for the level of risk taken.
Past SIP investments in the fund have performed as shown by this table
In simple terms, the AXIS Small Cap Fund Regular Growth has been a strong performer over time with consistently better performance.
The AXIS Small Cap Fund offers several benefits for people who want to grow their money over the long term. Here’s why many investors consider it a smart choice:
1. High Growth Potential: This fund invests in small companies that are still growing with time. These businesses may be small now, but they have the potential to grow fast and give better returns in the future.
2. Bottom-up approach: This scheme carries a bottom-up approach strategy to investing in small caps, which is aimed at identifying long-term businesses
3. Ideal for Long-Term Investors: If you stay invested for 5 years or more, this fund can help you build capital. It rewards with consistent & long-term returns.
4. Managed by Experts: Your assets are held by experienced professionals who carefully pick the right stocks & analysis behalf. They study the market and make smart investment decisions for you.
5. Diversification: The fund invests in many different sectors & companies. This helps reduce risk, so if one company does not perform well, others can balance it out with a diversified portfolio of stocks
6. Good for SIP Investments: It is one of the best SIP options for people who want to invest a small amount regularly. You do not need a big lump sum of capital to start. Go with monthly investments.
7. Better Risk-Adjusted Returns: The fund has shown stable performance with fewer ups & downs compared to other small cap funds. This scheme targets a portfolio, keeping in mind risk & reward by containing mistakes and navigating volatile stock movements
8. Volatility Protection: This fund offers good volatility protection, meaning it can be less volatile than other small cap funds in its category is ideal for small cap investors who can patiently invest and have the power to absorb short-term volatility.
In short, the AXIS Small Cap Fund is great for those who want to invest consistently and grow their capital over time with professional guidance and smart stock choices.
As an investor, you must know before investing in any funds whether it is suited to your goals or the right choice for you. Here are some checkpoints to consider before investing:
If you are planning to invest for at least 5 to 7 years, this fund can be a good fit for your financial journey. Small cap stocks get time to grow & staying invested longer helps in market ups and downs.
If you are aiming for higher returns and are comfortable with more risk, this fund can offer strong growth potential over time.
If you are new to the investment journey, this fund can help you build long-term wealth through the Best SIP investments.
Small cap funds can be more volatile (prices go up and down) with subject to market risk. If you are okay with some short-term ups and downs, then this fund might work well for you.
This fund is one of the Best SIP options for people who want to invest a small amount every month in a disciplined manner. It helps you get better with compounding over time.
If you are looking for stable or low-risk returns or need the money in the short term (1-2 years), then you should avoid this.
The AXIS Small Cap Fund - Regular - Growth is an open-ended equity scheme that focuses on small cap stocks. It falls under the equity small cap category, ideal for long-term investors looking for high growth.
1. Launch Date: 5th November 2013
2. Fund Type: Open-ended equity scheme (small-cap category)
3. Asset Class: Equity
4. NAV (as of May 2025): Rs104.02
5. CAGR Since Inception: 22.55%
6. Benchmark Index: Nifty Small Cap 250 TRI
7. Minimum Lump Sum Investment: Rs 100
8. Minimum SIP Investment: Rs 100
This makes it affordable for beginners and suitable for those looking to start small with one of the best SIP options in the small cap fund.
Exit Load works only 1% if more than 10% of the investment is redeemed within 12 months.
The AXIS Small Cap Fund has the potential to give higher returns, but it also comes with higher risk. Here is what you need to know about its risk profile:
This fund is marked under the "Very High" risk level as per the SEBI Risk Meter. That means your capital can fluctuate in the short term. It is a common characteristic for small cap stocks to be more volatile than large cap or mid cap stocks.
Returns could differ. While the fund has historically generated excellent returns, there could be times in which performance is decreasing or possibly turning unfavourable, making it unsuitable for short-term objectives.
This fund could not be the ideal choice if you are searching for constant, safe returns. It would be more appropriate for long-term investors who can tolerate fluctuations in the short term.
Investing through a Best SIP for 5 years or more can help reduce the impact of market volatility and give a better impact of compounding returns.
Lastly, the AXIS Small Cap Fund is a strong option for long-term investors who are looking to grow their capital by investing in small cap but fast-growing companies. It has strongly delivered solid returns over the years, especially for those who are long-term investors and stay invested for 3 to 5 years or more. While it comes with a very high risk, it also offers high growth potential, making it a good fit for investors who are comfortable with market volatility. If you are planning to invest through a Best SIP, this fund can be a perfect choice to start small and build assets over time.
With a minimum starting amount, professional management, and the flexibility of SIPs, the AXIS Small Cap Fund Regular Growth can help you take advantage of India’s growing small cap market. But before investing make sure your investment goal matches the risk level & You are prepared to stick with your investment over time.
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