Australian Small & Mid Cap Equity Funds are investment funds focused on stocks of smaller companies listed on the Australian Stock Exchange.
This segment of the equity market offers investors opportunities for capital growth, often with higher potential returns than larger cap stocks, while also coming with distinct risks.
Australian Small & Mid Cap Equity Funds primarily invest in companies with smaller market capitalizations—typically classified as those with a market capitalization under $3 billion (small cap) and between $3 billion and $10 billion (mid cap).
These funds aim to capture the upside potential of smaller companies that may not be as widely followed as large caps, often leading to opportunities for higher growth.
There are two main types of Australian Small & Mid Cap Equity Funds:
There are two main features of Australian Small & Mid Cap Equity Funds:
There are three main risks of investing in Australian Small & Mid Cap Equity Funds:
When comparing these funds, investors should consider the following factors:
Investors can gain exposure to Australian Small & Mid Cap Equity Funds through:
A small-cap stock typically has a market capitalisation of under $3 billion.
A mid-cap stock generally falls between $3 billion and $10 billion in market capitalisation.
Small & Mid Cap Equity Funds are generally better suited to risk-tolerant investors looking for higher growth asset classes.
Capital gains generation can lead to tax liabilities and income tax is payable on fund distributions, varying by individual circumstances.
Investors can generally redeem their units by following the fund's specific withdrawal process which can take time.
Yes, due to market volatility and fund performance risks.
It is advisable to assess your portfolio at least annually, or more frequently if market conditions change.
This varies by fund. Some funds may have minimum initial investments ranging from $1,000 to $5,000.
Australian Small & Mid Cap Equity Funds represent a distinctive investment opportunity with the potential for significant capital growth. This asset class presents both unique benefits and risks.
By understanding the types of Australian Small & Mid Cap Equity Funds available and how to evaluate them, investors can make informed decisions that align their portfolios with their risk tolerance and investment objectives.
The Fund provides an opportunity to access a highly experienced investment team with a proven track record of prudent, common sense investing.
The Fund seeks to achieve superior total returns by providing medium to long term capital growth investing in smaller capitalisation companies.
The Fund is a long only, small cap Australian equities fund that typically invests in 20 – 40 companies. The objective of the Fund is to provide strong absolute returns, while also outperforming its S&P/ASX Small Ordinaries Accumulation Index.
The Fund combines the skills of highly experienced small company investors with a limited fund size and an objective of providing above market returns over the medium term.
A portfolio of 20-50 sufficiently liquid, small and mid-cap ASX-listed companies, with a preference for high quality, profitable and growth focused businesses.
The Fund takes a long-only investing approach to its portfolio with a view to invest in, on average, 25 to 40 positions across the ASX300. (For Wholesale Investors Only)
The Fund’s objective is to outperform the Small Ordinaries Accumulation Index by focusing on listed shares of smaller companies in Australia and New Zealand.
The Fund invests in a portfolio of primarily ASX-listed Securities outside (but not exclusively outside) the S&P/ASX 100 (For Wholesale Investors Only)
The Firetrail Australian Small Companies Fund is a concentrated portfolio of our most compelling Australian Small Company ideas.
The Fund aims to provide long-term capital growth and income by investing in companies outside the S&P/ASX 50 Index. (For Wholesale Investors Only)
The Fund aims to materially outperform the ASX All Ordinaries Accumulation Index net of fees over a rolling 5 year period via investing in a portfolio of Australian companies listed - or soon to be listed - on the ASX.
OC’s Premium Small Companies portfolio is designed to deliver strong long-term returns by investing in quality small to mid-cap Australian listed companies with sustainable business models, quality management and attractive investment fundamentals.
NuStar Global Diamonds is a small cap absolute return fund that seeks to provide alpha in all market conditions. (For Wholesale Investors Only)
NCC aims to provide investors with a long-term concentrated exposure to Australian public and private emerging companies (excluding resource companies).
A long only small-cap fund targeting future-facing emerging companies on the ASX.
