HSBC Small Cap Fund

The L&T Emerging Businesses Fund is a small-cap equity investment vehicle. It was established on May 12, 2014, and is run by Saumendra Nath Lahri and Karan Desai. At least 65% of the scheme’s total assets will be invested in small-cap equities.

The scheme’s objective is capital appreciation over the long term by investing in a diverse portfolio of mostly Indian equities and equity-linked instruments, including equity derivatives, with a primary emphasis on developing enterprises (small-cap stocks).

Moreover, the scheme may make investments in foreign securities. Businesses that are still in their infancy but show promise for rapid expansion in terms of both revenue and profit are considered emerging. There is no certainty that the Scheme’s goal will be achieved, and investors should not expect any profits.

Pros & Cons

How to invest in L&T Emerging Businesses Fund?

It is simple to invest in the L&T Emerging Businesses fund with 5paisa. The process has been streamlined and now requires no paperwork at all. Simply comply with the instructions listed below:

What is the expense ratio of the L&T Emerging Businesses Fund?

For each year that your funds are invested in a specific Mutual Fund, the Expense Ratio represents the yearly management costs imposed by the Mutual Fund operator. The expense ratio is computed as a percentage of AUM and reduces fund returns by that amount. A fund with a lower expense ratio is preferable since a lesser proportion of your returns will be used to pay fees.

Who should invest in the L & T Emerging Businesses Fund?

Because it is a small-cap fund, this fund is appropriate for investors who are willing to take on a high level of risk and who have a long investment horizon, say more than 6 years, to reap the full benefits of the fund.

What are the benefits of investing in the L&T Emerging Businesses Fund?

This fund has delivered above-average returns for its investors and has often beaten its benchmark. It is a high-risk fund that has returned 19.67% since inception. Returns during the last year have averaged 16.32%, and over the past three years, they have averaged 20.39% annually.

Most rating services agree that this is one of the best small-cap funds in India. The market has taken notice of this fund despite its relative youth in the small-cap space. Since it didn’t launch until much later, this fund hasn’t had to weather any particularly severe bear markets like the one in 2008.