Top Mutual Funds: Small-cap mutual funds have given stellar returns to investors in the last year. Mahindra Manulife Small Cap Fund - Direct Plan, ABSL Nifty Smallcap 50 Index Dir, Axis Nifty Smallcap 50 Index, and Bandhan Small cap Direct fund have given stellar returns of more than 70% in just one year, as per data available on Value Research.
Small-cap mutual funds are associated with higher risk, and their performance is impacted by market fluctuations. These funds invest money in companies that are much smaller in size with a market capitalization of less than ₹5,000 crore. Market experts say that in the long term, small-cap mutual funds are capable of giving the maximum returns.
Mahindra Manulife Small Cap Fund - Direct Plan has given a stellar return of 73.01%.
ABSL Nifty Smallcap 50 Index Direct Plan has given a terrific return of 71.37%
Axis Nifty Smallcap 50 Index Direct Plan has given an excellent return of 71.31%.
Bandhan Small Cap Direct fund has also given a superb return of 71.09% in just one year.
If sold after one year from the purchase date, the long-term capital gain tax will be applicable. The current tax rate is 10%, if your total long-term capital gain exceeds 1 lakh. If sold before one year from the purchase date, the short-term capital gain tax will be applicable. The current tax rate is 15%.
Meanwhile, mutual funds' collected ₹63,854 crore through 212 New Fund Offerings (NFOs) in 2023, according to data compiled by Morningstar India. In comparison, Asset Management Companies (AMCs) garnered ₹62,187 crore through 228 New Fund Offerings (NFOs) in 2022.
