The Tata Small Cap Funds vs Best Mirae Asset 2025 Overview Comparison
The selection of an appropriate small cap mutual fund has emerged as one of the priorities of Indian investors who want to gain more returns in 2025. Mirae asset and Tata mutual funds are two widely noticed funds on the agenda of everybody. The two funds, Mirae Asset Emerging Bluechip Fund and Tata Small Cap Fund have both established a great reputation, yet what is their comparison in the current market? In this case, we subdivide all the information you should know prior to investment.
What are Small Cap Funds and Why Should They Be considered?
Small cap funds are the equity mutual funds which focus on investing mainly those companies which are below 250 in terms of market capitalization on Indian stock exchanges. The purpose of these funds is to cash in on the rapid development opportunities of new businesses.
- Perfect in terms of long term wealth creation.
- Generally more risky, and more rewarding.
- Suit risky investors who behave in an aggressive manner.
Key Features or Highlights
- Target high growth, under-researched companies.
- Good returns as companies grow.
- Appropriate to investors who wish to outperform conventional instruments.
Pros
- Largely untapped opportunities.
- Diversifies portfolio
- Allows an early penetration of appealing businesses.
Cons
- High short-term volatility
- High exposure to losses compared to large cap funds.
- May is more time demanding.
Did you know?
Small cap indices by market data have performed better than large cap indices when it comes to five-year periods, but have been hit harder in market corrections.
People Also Ask
A: Who would be interested in investing in small cap funds?
A: Small cap funds are the most suitable to long term investors who are more risk-takers and can bear the volatility of the market.
What are Mirae Asset Small Cap Funds and Why Should They Be considered?
Mirae Asset Small Cap Fund has become popular due to its constant returns and good performance in the management of its portfolio. The fund aims at scalable Indian companies that have strong growth paths.
Key Features or Highlights
- Launched: January 2019
- Fund Manager: Neelesh Surana
- Assets Under Management: [?] 7,000 crore (estimated as at early 2025)
- 5-year CAGR: 26 percent
- Majorly invests in growth visible quality small caps.
Pros
- Risk management experience.
- Rigorous investment procedure.
- Fair cost of doing business (1.40 percent in direct plan)
Cons
- May performs poorly in bear markets as a result of the growth bias.
- Small cap returns may be affected by the pure small cap returns of portfolio because of its midcap inclination in the perilous times.
People Also Ask
Q: What is the minimum SIP of Mirae Asset Small Cap Fund?
A: The SIP minimum is [?]500/month.
Expert Insight
When selecting stocks, fund managers at Mirae Asset pay special attention to capital efficiency indicators such as ROE and debt ratio to make the portfolio less susceptible to downside even in a volatile market.
What is Special in Tata Small Cap Fund?
Tata Small Cap Fund has become one of the best competitors, especially in its vigorous stock picking and recovery theme capturing following 2023-2024 market cycles.
Key Features or Highlights
- Inception Date: November 2018
- Fund Manager: Siddharth Vora
- Assets Under management: [?]5,800 crore (as at January 2025)
- 5-year CAGR: 28 percent
- Top sector allocation in Healthcare and Chemicals.
Pros
- Good performance in good bull markets.
- Alterations of the portfolio dynamically in relation to industry trends.
- Targeting firms that are experiencing better fundamentals.
Cons
- Poorer volatility than others.
- Portfolio turnover ratio on the 58 percent higher side last year.
- Minor increase (1.55 percent on direct plan) in the cost ratio.
People Also Ask
Q: Can first time investors invest in Tata Small Cap Fund?
A: Not the best choice of first-time investors as it is volatile by its very nature; is it worth taking the risk of dealing with steep and tailgates?
Did you know?
Tata Small Cap Fund has heavily invested in chemical and export based stocks thus the fund has been able to perform well amid some global bull markets.
What is the Comparative Performance of These Funds on the important measures?
A direct comparison will be more illuminating to investors who will be deciding on between Mirae Asset and Tata Small Cap.
| Factor | Mirae Asset Small Cap Fund | Tata Small Cap Fund |
|---|---|---|
| Launch Year | 2019 | 2018 |
| AUM (Jan 2025) | [?]7,000 crore | [?]5,800 crore |
| 3-year CAGR | 25 percent | 27 percent |
| 5-year CAGR | 26 percent | 28 percent |
| Expense Ratio (Direct) | 1.40 percent | 1.55 percent |
| Turnover in Portfolio | 40 percent | 58 percent |
| Large Industries | Industrials, Financials | Chemicals, Healthcare |
| Minimum SIP | [?]500 | [?]150 |
| Fund Manager Experience | 6 years | 5 years |
Highlights of the Quick Comparison.
- The returns of Tata are more volatile and have high turnover.
- Mirae Asset has a higher score in downside control and cost.
People Also Ask
Q: Is it possible to invest both funds at the same time?
A: Yes, but make sure that overall portfolio asset allocation is in accordance with your risk profile.
Expert Insight
Further diversification can be achieved by investing in different fund houses because fund managers would have differing views on the sector or the style.
What is Investment Strategy of the two Funds?
The investment philosophy of both funds is slightly different and this influences their returns and the level of risk.
Mirae Asset Small Cap Fund
- When focusing on quality, sustainable growth companies.
- Wise basic sector allocation, not too much concentration.
- Concentrates on proven management businesses.
Tata Small Cap Fund
- More aggressive in terms of growth themes and market cycles.
- Rebalances into new market leaders regularly.
- Frequently makes investments in turnaround or deep value small caps.
Key Takeaway
- The strategy of Mirae Asset is less risky and predictable.
- The higher upside in bull markets can be achieved by Tata Small Cap.
Did you know?
In 2024, this overweight of Tata Small Cap in chemical stocks contributed almost 14 percent of the total portfolio returns.
People Also Ask
Research question: Does sector allocation affect the returns of mutual funds?
A: Yes, calls in small cap funds particularly in the sector can have a great impact on short and medium term performance. One of the major factors is the rotation of the sector.
What are the Major Risks that Investors Need to Keep in mind?
The small cap funds are such as Mirae Asset and Tata which are associated with different spectrum of risks as compared to when a person is investing in large cap or index funds.
- Acute market reprisals may have an adverse effect on NAV.
- The small cap stocks are less liquid and thus bigger price swings can be realized.
- Smaller companies have a greater risk of corporate governance.
Risk Management Tips
- Always invest, maximum 5 years and above.
- Entering points should be dispersed with SIPs.
- Small caps should not be over 20 percent of your equity holdings.
Expert Insight
Seasoned investors suggest periodic portfolio review and adjustment particularly when exposure to small cap is more than what was allocated at the time because it performs better than projected.
People Also Ask
Q: What are the things that I must do during market declines in small cap funds?
A: During periods of downturn, you should buy the units instead of panicking and selling, however, in the long term, your vision remains unchanged.
What type of investor should have which type of fund?
There are various investment styles and risk appetite that one fund can not fit in.
- Mirae Asset Small Cap Fund: The best fund to invest in is when the investor wants moderate risk, compound, and evidence-based selection process.
- Tata Small Cap Fund: It is appropriate in the hands of aggressive investors that seek higher alpha, emerging themes, and not concerned with short-term volatility.
Who Should Avoid Both?
- Short-term investors
- The ones that require liquidity within 1-2 years.
- Anybody who can not put up with NAV swings of 20 percent or higher.
People Also Ask
Question: Which types of plans should I select with such funds direct or regular?
A: Direct plans are cheaper in terms of ratio, hence long-term investors will be in a better position to use direct.
Did you know?
Companies below market cap of less than [?]10,000 crore as of March 2025 portfolio data have over 70 percent of investments in Tata Small Cap.
The Comparison between Fund Performance and Ratings in 2025
Morningstar and Value Research are ratings agencies that offer fund ratings on the basis of historical returns, risk and consistency.
| Fund Name | Morningstar Rating | Value Research Rating | 1-Year Return (2024) | 3-Year Return (CAGR) |
|---|---|---|---|---|
| Mirae Asset Small Cap | 4 Stars | 4 Stars | 53 percent | 25 percent |
| Tata Small Cap | 5 Stars | 5 Stars | 61 percent | 27 percent |
Key Points
- Tata is a little bit more rated on returns but at a higher volatility.
- Mirae has high ratings of risk-adjusted returns.
People Also Ask
Q: Are fund ratings reliable?
A: Ratings can be used as a guide in the initial screening, however, should not be a decision-maker as new factsheet and performances can be checked.
Expert Insight
Analysts recommend that you should use the ratings together with your due diligence like reading quarterly fund reports which contain commentary of the managers.
What are the Tax Implications to Small Cap Funds?
Mirae Asset and Tata Small Cap equity mutual funds are taxed according to equity rules.
- Short term (below 12 months): Gain taxed at 15 percent.
- Long term (that has a holding period in excess of 12 months): Gain that is not indexated: Taxed at 10 percent.
Tax Saving Strategies
- Invest over 1 year to receive benefit of reduced tax.
- Capital gains withdrawal should be spread by use of annual SIPs in case of need.
People Also Ask
Q: Is the dividend paid on small cap funds taxed?
A: Yes, the dividend is subject to taxation based on your income slab as of 2020.
Did you know?
There is the systematic transfer Planning (STP) of large cap funds to small cap funds to rebalance portfolio in a tax efficient way.
TLDR or Quick Recap
Mirae Asset Small Cap vs. Tata Small Cap Funds: Comparison in 2025:
- Both are good choices to create wealth in the long term with the help of small cap exposure.
- Tata Small Cap has brought a little high recent returns and volatility.
- Mirae Asset is more stable and can be an option with investors who are conservative.
- Return differences are based on the sector choice and fund management style.
- Be sensible in your allocation, conduct periodic reviews and align risk profile to fund preference.
People Also Ask Section
Q1: Is small cap funds safe to invest in 2025?
A1: It is a matter of relative safety that will be based on your investment horizon, discipline and an appropriate allocation of your assets. Small cap funds are risky in nature, and may pay off to patient investors.
Q2: What is the minimum amount of SIP in the funds?
A2: Small Cap Fund of Tata SIPs can be done at a minimum of [?]150 whereas in Mirae most of the SIPs can be initiated at [?]500.
Q3: Is it possible to invest in these funds by NRI investors?
A3: Yes, these two funds welcome the investments of NRIs except restricted countries.
Q4: What should be the frequency of review of my small cap funds?
A4: Have the performance reviewed at least once every 6 months or following a major event in the market.
Q5: What is the optimal holding period of small cap mutual funds?
A5: It is advised to stay in the market with a holding period of 5-7 years that will help it to cushion against volatility and enjoy cyclical growth.
Question 6: Which fund is more appropriate to the SIP investors?
A6: SIPs are permitted in both of them, depending on your personal choice and lowest amount of investment.
Sources
- Mirae Asset Small Cap Fund Factsheet.
- Tata Small Cap Fund Factsheet.
- Morningstar India
- Value Research Online
- SEBI regulations of mutual funds.
