By investing in mutual funds, there is a wide possibility of the objective one wants to achieve. Some of the top mutual fund schemes are the Nippon India Small Cap Fund and Nippon India Growth Fund. The small-cap fund is primarily aimed at achieving high growth on the investments that are made into the fund. On the other hand, the growth fund seeks to deliver the steady growth of the capital invested over time. Knowing this it is also important to understand when it is right to borrow and spend that money, a way on how you can maximize the probable rewards while minimizing the risk.
Get to know About the Nippon India Small Cap Fund
The Nippon India Small Cap Fund targets smaller organizations as it believes they have great opportunities for growth. It is common among small cap firms to have not much growth but they do have high returns. They also have higher risk attached to them due to the fluctuations in the market and lower scope for trading. This makes the small-cap fund ideal for investors who want high growth with high risk in the long run.
Understand Nippon India Growth Fund
However, the Nippon India Growth Fund is invested in different companies across industries of the economy. It focuses on a sustained rate of reinvention that offers a less risky proposition than its predecessor. The companies associated with this kind of fund experience relatively stable growth and offer steady revenue all the time. This makes the growth fund attractive to any investors who are willing to hold their investment for a long in order to generate wealth.
Merging Aggressive Growth and Stability
One should consider that the Nippon India Small Cap Fund can be used together with the Nippon India Growth Fund as an investment plan. The small-cap fund allows you to take advantage of potential high-growth opportunities, while the growth fund provides balance and mitigates risk.
By investing with a small portion of your capital in the small-cap fund, you can aggressively chase returns when the situation in the market is conducive for small companies. On the other hand, the growth fund means that your portfolio position remains unchanged regardless of the stock market volatility.
Conclusion
While the primary objective of Nippon India Small Cap Fund is to invest in small-cap companies and generate capital appreciation, Nippon India Growth Fund invests in mostly growth-oriented mid-cap companies. That way, you can employ the small-cap fund for high growth and the growth fund for extra security at the same time. It would be beneficial to approach growth with these funds with some specific strategy and keep the goal in mind for years down the road.
