Home / Money / Personal Finance /  3 high-rated small-cap funds turn SIP of 10,000 to over 6 lakhs in 3 years

Small-cap funds are the only funds where positive inflows have marginally grown, while all other main categories of equity fund inflows have plummeted in July, as per AMFI. Positive inflows into small-cap funds climbed by 10.11% from June to July, reaching 1,779.45 Cr. Small-cap funds have a high risk/high reward ratio, which means that high-risk investors can invest in small-cap funds using the SIP method. The S&P BSE Small Cap TRI Index is down 6.38% YTD, but some small-cap funds have produced good gains despite the decline of the benchmark. Here are the 3 small-cap funds that have turned a monthly SIP of 10,000 to over 6 lakhs in a period of 3 years.

Nippon India Small Cap Fund - Direct Plan

The fund was introduced on January 1, 2013, and as of this writing, Value Research has given it a 4-star rating. As of June 30, 2022, Nippon India Small Cap Fund Direct- Growth had assets under management (AUM) of 20362.58 crores, and as of August 12, 2022, the fund's NAV was 95.19. The fund's expense ratio of 1.04% is much higher than that of the majority of other funds in the same category. Since its introduction, Nippon India Small Cap Fund Direct- Growth has generated returns averaging 20.82% per year, and 14.65% over the past year. 

A monthly SIP of 10,000 established in this fund three years ago would now have grown to about 6.29 lakh according to the fund's trailing return of 35.78%. A monthly SIP of 10,000 initiated 5 years ago would now have grown to around 11.53 Lakh due to the fund's 19.95% return over the previous 5 years. Since the fund has produced a return of 20.08% over the past seven years, a SIP of 10,000 would now have grown to around 19.18 lakh. 

The fund's top five holdings are TI Financial Holdings Ltd., Grameen Financial Services Pvt Ltd., KPIT Engineering Ltd., HDFC Bank Ltd., and Navin Fluorine International Ltd. Its sector allocation includes the capital goods, financial, chemicals, consumer staples, and technology industries.

Kotak Small Cap Fund - Direct Plan

The fund was launched on 01-January-2013 and currently, the fund holds a 4-star rating from Value Research. As of June 30, 2022, Kotak Small Cap Fund Direct-Growth has assets under management (AUM) totalling 7783.8 Cr and a NAV of 184.49 as of August 12, 2022. The fund has an expense ratio of 0.59% which is lower than most other small-cap funds. Since its introduction, Kotak Small Cap Fund Direct-Growth has generated returns of an average of 20.58% per year, and 11.59% during the past year. 

A monthly SIP of 10,000 established in this fund three years ago would now have grown to around 6.20 lakh according to the fund's trailing return of 37.68%. Due to the fund's 19.82% 5-year return rate, a monthly SIP of 10,000 would have grown to around 11.85 Lakh now. A monthly SIP of 10,000 started in this fund seven years ago would now have grown to about 19.06 lakh thanks to the fund's 18.70% returns over the past seven years. 

Materials, consumer discretionary, chemicals, metals & mining, and capital goods industries are included in the fund's sector allocation. Century Plyboards (India) Ltd., Carborundum Universal Ltd., Sheela Foam Ltd., Galaxy Surfactants Ltd., and Ratnamani Metals & Tubes Ltd. are the top 5 holdings of the fund.

Edelweiss Small Cap Fund - Direct Plan

The fund was introduced on February 7, 2019, and as of right now, Value Research has given it a 4-star rating. As of June 30, 2022, Edelweiss Small Cap Fund Direct - Growth had assets under management (AUM) worth 1216.7 Cr, and as of August 12, 2022, the fund's NAV was 26.1. The expense ratio of the fund, which is 0.57%, is lower than that of the majority of other funds in the same category. 

Since its introduction, Edelweiss Small Cap Fund Direct has produced average annual returns of 31.40%, with 1-year growth returns of 14.58%. A monthly SIP of 10,000 started in this fund three years ago would now have grown to around 6.22 lakh according to the fund's trailing return of 36.27% over the past three years. The fund has investments in the capital goods, financial, materials, services, and healthcare sectors. The top five holdings of the fund are City Union Bank Ltd., Kei Industries Ltd., Navin Fluorine International Ltd., JB Chemicals & Pharmaceuticals Ltd., and Can Fin Homes Ltd.

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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