The minimum investment is Rs.5000 and SIP facility is available with a minimum amount of Rs.1000.While the entry load is nil, exit load of 2% would charged if redeemed within 12 months of the investment. The scheme has both dividend and growth options available. The issue is currently open and it closes on 9 September 2010.
So, to invest or no to?
The fund is a very aggressive small cap oriented fund which intends to invest in small sized companies. It is a high risk - high return oriented fund characterized by volatility which is expected to be smoothened out by staying invested over a longer term horizon.Although small-cap stocks are often perceived as risky relative to their large-cap counterparts, they have other characteristics that may provide an opportunity for portfolio diversification and return enhancement.
Reliance Mutual Fund does not have a mid or a small cap fund, but the fund house has a satisfactory track record in its existing equity funds, like Reliance Savings Fund. Hence, investments in Reliance Small Cap Fund can be considered by the investor with a higher risk appetite and who is willing to hold with a long term prospective only.
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Yes, it is a high risk investment, but the fund many perform over long term.