There are certain mutual fund schemes that have turned investors into millionaires. This small-cap scheme from Franklin Templeton India Mutual Fund has also generated significant wealth for investors; it is known as the Franklin India Small Cap Fund. Had you invested ₹10,000 monthly via a SIP in this fund for 15 years, your investment would have grown to ₹81 lakh today. Franklin Templeton has shared details regarding the fund's performance.

**Fund Launched in January 2006**

The Franklin India Small Cap Fund has an Asset Under Management (AUM) exceeding ₹14,000 crore. According to Franklin Templeton's calculations, a lump-sum investment of ₹10,000 made at the fund's inception would have grown to ₹1.79 lakh today. The fund was launched in January 2006. Franklin Templeton stated that, since its inception, the fund has outperformed its benchmark—the Nifty Smallcap 250 Index.

**Fund Delivered Over 19% Return Over 15 Years**

The fund has outperformed its benchmark over 5-year and 15-year periods, as well as since inception. However, over a 3-year period, its return lagged behind the benchmark; the benchmark returned 16.15%, while the fund returned 12.82%. The fund also trailed the benchmark over a 10-year period. Conversely, over 15 years, the fund delivered a return of 19.03%, compared to the benchmark's 15.75%. Lump-sum investment starts at a minimum of ₹5,000

Akhil Kalluri, the fund's portfolio manager, stated that the fund focuses on shares of companies that are fundamentally strong and possess high growth potential. An exit load of 1% applies if money is withdrawn within one year of investment. A lump-sum investment in this fund can be made starting from a minimum of ₹5,000, with additional investments allowed in multiples of ₹1,000.

Higher risk associated with Small-cap fund investments

This fund falls under the small-cap category and invests exclusively in the shares of small-cap companies. Investing in small-cap stocks carries higher risk. While they offer the potential for higher returns, these stocks also experience sharper declines compared to large-cap and mid-cap stocks during market crashes. Therefore, only investors with a high risk appetite should consider investing in small-cap funds.

Make investment decisions in consultation with a financial advisor.

Furthermore, one should not base investment decisions solely on a fund's past performance. A fund's strong historical performance does not guarantee similar results in the future. Investors should decide to invest in a fund only after consulting their financial advisor.

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