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Business News/ Money / Personal Finance/  Top six small-cap mutual funds for best return on your money. Check details here
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Top six small-cap mutual funds for best return on your money. Check details here

Top six small-cap mutual funds: Small-cap funds are associated with higher risk. In a bullish market, these schemes can generate substantial returns

According to SEBI, small-cap funds must allocate at least 65% of their investment corpus to small-cap stocks. (Mint)Premium
According to SEBI, small-cap funds must allocate at least 65% of their investment corpus to small-cap stocks. (Mint)

Before choosing a mutual fund scheme, investors weigh the advantages and disadvantages. In this article, we talk about some of the top-performing small-cap mutual fund schemes. 

What are small-cap mutual funds?

Small-cap mutual funds primarily invest their fund corpus in stocks of companies that fall below the top 250 companies as per the market capitalisation. Their performance is impacted by market fluctuations. Small-cap funds are associated with higher risk. In a bullish market, small-cap mutual fund schemes can generate substantial returns. However, these funds are severely impacted in a bearish market. According to the Securities and Exchange Board of India (SEBI) rules, small-cap funds must allocate at least 65% of their investment corpus to small-cap stocks.

Best small-cap mutual funds for investment

Dr. Ravi Singh, Vice President and Head of Research, Share India has shared three top small-cap mutual funds for best return on your money

1)Nippon India Small cap with a three-year return of around 40.29%.

2)Quant Small Cap Fund with a three-year return of around 60%.

3) SBI Small Cap Fund with a three-year annualized return of around 32.19%.

Vinit Khandare, CEO and Founder, MyFundBazaar 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 listed one best small-cap mutual funds for the long term.

1)Nippon India Small cap

Pankaj Mathpal, MD & CEO at Optima Money Managers listed one best small-cap mutual funds for the best return on your money

1)Axis Small Cap Fund

Top performing small cap mutual funds: Key things to know

1)SBI Small Cap Fund

This fund has been in existence for more than 10 years now, and was launched on 1 January 2013. It has given an annualised return of 19.23% since the launch. The top constituent stocks include Nifty 50, Blue Star Ltd.. Triveni Turbine Ltd., Carborundum Universal Ltd.

2) Nippon India Small Cap Fund

It has given an annualised return of 19.86 percent since the fund’s launch in September 2010. The top constituent stocks include Tube Investments of India, Tri-party Repo, HDFC Bank, KPIT Technologies, and Bank of Baroda.

3) Quant Small Cap Fund

This scheme has given a return of 10.70 percent since its inception on 29 October 1996. The top constituent stocks include RIL, HDFC Bank, ITC, RBL Bank, PNB, IRF Infra, Bikaji Foods, Jindal Stainless, Usha Martin, and Just Dial.

4) Axis Small Cap Fund

It was launched on 29 November 2013. It has given an annualised return of 22.2 percent since its' launch in 2013. The 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 an annualised return of 11.76% since launch. The top constituent stocks include Cyient Limited, Krishna Institute of Medical Sciences Ltd, and PVR Inox Ltd.

6) HDFC Small Cap Fund

It was launched on 3 April 2008. It has given an annualised return of 15.34% since its inception. The top constituent stocks include Sonata Software Ltd., Bank Of Baroda, Bajaj Electricals Ltd., and Firstsource Solutions Ltd.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
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Published: 17 May 2023, 01:25 PM IST
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