I am planning to invest in Quant Small Cap Fund (Direct Plan, Growth option). I want to invest a lumpsum for three years.
-–Vinay Joshi
Small cap schemes are recommended to aggressive investors who are willing to take a lot of risk and tolerate volatility. These schemes can be extremely risky in the short term and you can lose money. They also may have prolonged periods of underperformance or losses. You must continue with your investments in small cap schemes in trying conditions to make money over a long period.
Quant Small Cap Fund has offered spectacular returns in the last three years. It offered 55.93 % in three years. Quant Mutual Fund follows VLTR (valuation, liquidity, time, and risk appetite) investment framework. It takes aggressive investment calls and it has paid off for the scheme in the last few years. However, you should remember that this is a scheme that may take a lot of risk if it thinks it is necessary. The scheme may also dynamically change the portfolio. You should remember these aspects while investing in any Quant Mutual Fund schemes.
You should not invest in a small cap scheme if you have an investment horizon of only three years. We recommend investing in small cap schemes only if the investor has an investment horizon of seven to 10 years. He should also be aware that small cap schemes can underperform for a long period.
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