scorecardresearchBest performing small cap mutual funds in the last 5 years

Best performing small cap mutual funds in the last 5 years

Updated: 17 May 2023, 12:09 PM IST
TL;DR.

There are four mutual funds schemes that gave more than 14 percent return in the past five years. We share more details here

Investors base their decision of choosing a mutual fund scheme based on a number of factors which include historical returns

Investors base their decision of choosing a mutual fund scheme based on a number of factors which include historical returns

Before choosing a mutual fund scheme, investors weigh the pros and cons of a number of determinants. These include their risk appetite, investment goals, fund’s category, expertise of fund manager, expense ratio of scheme, reputation of asset management company, among others.

One key factor, meanwhile, that often gets greater importance than others is the historical returns delivered by that scheme.

Here, we shed light on some of the top performing small cap mutual fund schemes that gave more than 15 percent compound annual growth rate (CAGR) return in the past 10 years:

What are small cap funds?

These are the funds that invest in the companies that fall below top 250 companies as per the market capitalisation. Small cap funds are considered a good investment option for the high returns they offer.

These funds are more volatile and riskier in nature but offer a scope to earn higher returns.

As we can see in the table below, these four small cap funds gave the best returns. Quant Small Cap Fund delivered CAGR returns of 23.80 percent in the past five years. This was followed by Axis Small Cap Fund that gave 17.58 percent return.

Nippon India Small Cap Fund delivered a return of 15.37 percent and Kotak Small Cap Fund gave 14.71 percent return.

Small cap funds                               5-year-returns (%)
Quant Small Cap Fund                       23.80
Axis Small Cap Fund                     17.58
Nippon India Small Cap Fund      15.37
Kotak Small Cap Fund                     14.71

(Source: AMFI, regular returns as on Apr 28, 2023)

Here we share details on these top performing small cap mutual funds:

Quant Small Cap Fund: This scheme was launched on Oct 29, 1996. The scheme has given a return of 10.70 percent since inception. This means if someone had invested 10,000 at the time of inception, it would have grown to 1,47,705.

Its key constituent stocks include RIL, HDFC Bank, ITC, RBL Bank, PNB, IRF Infra, Bikaji Foods, Jindal Stainless, Usha Martin and Just Dial.

Axis Small Cap Fund: It was launched on Nov 29, 2013. It has given an annualised return of 22.2 percent since inception.

The top constituent stocks include Clearing Corporation of India, Narayana Hrudayalaya, CCL Products India and Galaxy Surfactants.

Nippon India Small Cap Fund: It was launched in September 2010. It has given an annualised return of 19.86 percent since the fund’s inception.

Its top constituents are Tube Investments of India, Tri-party Repo, HDFC Bank, KPIT Technologies and Bank of Baroda.

Kotak Small Cap Fund: It was launched on Feb 24, 2005. It has given an annualised return of 19.48 percent. This means if someone had invested 10,000, it would have grown to 63,368.

The top constituent stocks are Carborundum Universal, Cyient, Ratnamani Metals & Tubes, Century Plyboards, Blue Star, Galaxy Surfactants and Supreme Industries.

 

Article
Mutual fund SIP accounts stood at 6.42 crore and the total amount collected through SIP during April 2023 was 13,728 crore
First Published: 17 May 2023, 12:09 PM IST