Motilal oswal micro cap fund vs any actively managed small cap fun

[hammadsultan]

Can anyone let me know which mutual fund should I choose between motilal oswal microcap and tata small cap fund. I am an aggressive investor with a horizon of 7-10 years. Also should I only invest in a flexi cap(ppfc) and a small cap fund for long term or should I invest in more funds?

 

[ShavirB]

Both Flexi Cap and Small Cap are good categories to invest for long term. But still I would recommend diversifying with a Large Cap to add some stability to your portfolio.

In the Small Cap category, we had done a detailed analysis on Youtube. The top funds in Small Cap category were - Quant Small Cap, Nippon Small Cap, SBI Small Cap, Kotak small Cap. You can watch that video to understand more

 

[hammadsultan]

Hi can you if possible let me see which whether motilal oswal microcap fund worth it or should I continue with a small cap fund?

 

[ShavirB]

What is the exact name of of this fund?

 

[hammadsultan]

The fund goes by the name of Motilal oswal microcap 250

 

[ShavirB]

Seems like this is the 1st fund launched in the Micro Cap Category. Fund also seems to be launched very recently. Data is very limited for a comprehensive analysis.

Will be able to comment only on the Micro Cap as a category, not this Fund

- MicroCap investing as the name suggest invests in in Companies with low market cap
- Generally such companies are promoter/ founder driven unlike Large Caps which have are run by a Board
- Due to this, these companies in general are very high risk - returns also could be disproportionately very high..

Final decision will depend on your risk appetite and investment strategy