Mutual funds are gaining popularity nowadays. People, especially young ones, are investing largely in mutual funds. There are many mutual funds out there but we have chosen the top performing small cap mutual fund in india to invest right now. So let’s start our article;
Top performing Small cap mutual funds in india
Before delving into the topic, first we need to know about the small cap mutual funds;
Small cap mutual fund kya hai
Small cap funds are equity funds that allocate a minimum of 65% of their assets to investments in small cap businesses’ stock and equity-related securities. In terms of market capitalization, small cap companies are those that are ranked below the top 250 corporations, as per SEBI criteria.
Reasons to invest in small cap mutual funds
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The investing universe for small cap funds is larger than that of large size, midcap, or sector/thematic funds.
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Due to the existence of new and developing areas that are expanding more quickly, small cap businesses provide stronger growth potential.
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Additionally, small-cap firms have a better chance of gaining market share because of their innovative technology or goods and services.
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Small cap companies’ returns are more impacted by company-specific factors than by macroeconomic ones.
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Small cap space comprises under-owned and under-researched enterprises, making it a very inefficient market.
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Small cap companies have greater development potential because market participants are less aware of them and don’t discover their prices.
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During economic recovery, small-cap stocks often expand at a quicker rate than large- and mid-cap companies.
Top 5 Small Cap mutual funds
Here are the top 5 small cap mutual funds;
Axis small cap fund
This fund has the following return rate;
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1 yr: 68.55%
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3 yr: 25.16%
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5 yr: 19.89%
SBI small cap fund
This fund has the following return rate;
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1 yr: 60.90%
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3 yr: 18.51%
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5 yr: 21.06%
Nippon india small cap fund
This fund has the following return rate;
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1 yr: 84.91%
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3 yr: 19.46%
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5 yr: 21.17%
Kotak small cap fund
This fund has the following return rate;
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1 yr: 94.72%
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3 yr: 24.99%
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5 yr: 18.81%
HDFC small cap fund
This fund has the following return rate;
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1 yr: 80.01%
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3 yr: 14.54%
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5 yr: 17.63%
FAQs
Which small-cap fund is best for 3
years?
Ans. Axis small cap fund is best for 3 years.
Which small-cap share will grow in
future?
Ans. Shares of renewable energy, infra and health will grow in future.
Which cap fund gives highest return?
Ans. Small cap funds give the highest return.
