InvestorQ : Can I invest in UTI small-cap fund?
tanvi Patel made post

Can I invest in UTI small-cap fund?

IIFL Expert answered.
2 years ago

UTI Small Cap Fund is a New Fund Offer (NFO) from a small-cap based mutual fund category. Since NFOs do not have a history of performance, they cannot be evaluated for investments. However, there are already good options available in the small-cap category.

Schemes like SBI Small Cap Fund, Nippon India Small Cap Fund, Axis Small Cap Fund, etc. have consistently generated superior returns in the long run. However, past performance is not guaranteed. An NFO can be considered only if it is an entirely unique theme and a comparable investment option is not available within the category.

Last but not the least, small-cap based mutual funds are recommended to only those investors who have a very high-risk appetite and an investment horizon of 8-10 years.