Investors consider the pros and cons before choosing a mutual fund scheme. In this article, we talk about some of the top performing Small-Cap Mutual Fund schemes.
What are Small-Cap Mutual Funds?
little hat mutual funds Predominantly invests its fund corpus in shares of companies that fall below the top 250 companies by market capitalisation. Their performance is affected by market fluctuations. Small-cap funds are associated with higher risk. In a bull market, small-cap mutual fund schemes can generate substantial returns. However, these funds are severely affected in a bear market. According to the Securities and Exchange Board of India (SEBI) rule, small-cap funds should allocate at least 65% of their investment corpus to small-cap stocks.
Best Small-Cap Mutual Funds to Invest
Dr. Ravi Singh, Vice President & Head of Research, Share India, shares three top small-cap mutual funds for best returns on your money
1) Nippon India Small Cap with three year returns of around 40.29%.
2) Quant Small Cap Fund with three year returns of around 60%.
3) SBI Small Cap Fund with three year annualized returns of around 32.19%.
MyFundBazaar CEO and Founder Vineet Khandare listed three best small-cap mutual funds where investors can consider investing.
1) SBI Small Cap Fund
2) ICICI Prudential Small Cap Fund
3) HDFC Small Cap Fund
Tax and investment expert Balwant Jain lists one of the best small-cap mutual funds for the long term.
1) Nippon India Small Cap
Pankaj Mathpal, MD & CEO, Optima Money Managers lists down the best small-cap mutual funds for best returns on your money.
1) Axis Small Cap Fund
Top Performing Small Cap Mutual Funds: Key Things to Know
1) SBI Small Cap Fund
The fund has been in existence for over 10 years now, and was launched on January 1, 2013. It has given an annualized return of 19.23% since launch. Top constituent stocks include Nifty 50, Blue Star Ltd.. Triveni Turbine Ltd., Carborundum Universal Ltd.
2) Nippon India Small Cap Fund
Since the launch of the fund in September 2010, it has given an annualized return of 19.86 per cent. Top constituent stocks include Tube Investments of India, Tri-Party Repo, HDFC Bank, KPIT Technologies and Bank of Baroda.
3) Quant Small Cap Fund
The scheme has given returns of 10.70 per cent since its inception on 29 October 1996. Top constituent stocks include RIL, HDFC Bank, ITC, RBL Bank, PNB, IRF Infra, Bikaji Foods, Jindal Stainless, Usha Martin and Just Dial.
It was launched on 29 November 2013. It has given an annualized return of 22.2 per cent since its launch in 2013. Top constituent stocks include Clearing Corporation of India, Narayana Hrudayalaya, CCL Products India and Galaxy Surfactants.
5) ICICI Prudential Small Cap Fund
It was launched on 18 October 2007. The scheme has given annualized returns of 11.76% since its launch. Top constituent stocks include Cyient Limited, Krishna Institute of Medical Sciences Limited and PVR Inox Limited.
6) HDFC Small Cap Fund
It was launched on 3 April 2008. It has given an annualized return of 15.34% since its inception. Top constituent stocks include Sonata Software Limited, Bank of Baroda, Bajaj Electricals Limited and Firstsource Solutions Limited.
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