Top 5 Small Cap Funds Giving Multibagger Return :In terms of returns, the top 5 small cap funds have given such excellent profits to investors in the last decade, on the basis of which they can be called multibagger. These small cap mutual funds have shown the lump sum investment of their investors increasing almost eight times in the last 10 years and have also given huge profits on SIP investments. These funds, which have given annual returns of more than 20% continuously for 10 years, include small cap schemes of Nippon, Axis, Kotak, Quant and SBI Mutual Fund (SBI MF). These funds have proven to be a better option for those investors who expect better long-term returns with high risk.
Small cap funds that have done wonders in the last 10 years
Over the last 10 years, the compound annual growth rate (CAGR) of the top 5 small cap funds has been more than 20%. You can see these shocking figures of performance of these funds here.
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Performance of Top 5 Small Cap Funds
1. Nippon India Small Cap Fund (Direct Plan)
return on lump sum
- 10 Year Return (CAGR): 22.93%
- 10 year return of benchmark index (NIFTY Smallcap 250 TRI): 16.56%
- Value of Rs 1 lakh lump sum investment in 10 years: Rs 7,89,722
- Absolute Return: 689.72%
SIP returns
- Value of Rs 10 thousand SIP in 10 years: Rs 48,66,070
- Absolute Return: 305.51%, Annulized Return: 26.37%
- Asset Under Management (AUM): Rs 61,056.57 crore
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2. SBI Small Cap Fund (Direct Plan)
return on lump sum
- 10 Year Return (CAGR): 21.46%
- 10-year return of benchmark index (BSE 250 SmallCap TRI): 15.76%
- Value of Rs 1 lakh lump sum investment in 10 years: Rs 6,99,897
- Absolute Return: 599.90%
SIP returns
- Value of SIP of Rs 10 thousand in 10 years: Rs 39,85,426
- Absolute Return: 232.12%, Annulized Return: 22.68%
- Asset Under Management (AUM): Rs 33,180.67 crore
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3. Quant Small Cap Fund (Direct Plan)
return on lump sum
- 10 Year Return (CAGR): 21.05%
- 10 year return of benchmark index (NIFTY Smallcap 250 TRI): 16.56%
- Value of lump sum investment of Rs 1 lakh in 10 years: Rs 6,76,682
- Absolute Return: 576.68%
SIP returns
- Value of Rs 10 thousand SIP in 10 years: Rs 51,59,984
- Absolute Return: 330%, Annulized Return: 27.45%
- Asset Under Management (AUM): Rs 27,245.30 crore
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4. Kotak Small Cap Fund (Direct Plan)
return on lump sum
- 10 Year Return (CAGR): 20.35%
- 10 year return of benchmark index (NIFTY Smallcap 250 TRI): 16.56%
- Value of lump sum investment of Rs 1 lakh in 10 years: Rs 6,38,394
- Absolute Return: 538.39%
SIP returns
- Value of Rs 10 thousand SIP in 10 years: Rs 41,47,226
- Absolute Return: 245.6%, Annulized Return: 23.42%
- Asset Under Management (AUM): Rs 17,667.24 crore
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5. Axis Small Cap Fund (Direct Plan)
return on lump sum
- 10 Year Return (CAGR): 20.35%
- 10 year return of benchmark index (NIFTY Smallcap 250 TRI): 16.56%
- Value of lump sum investment of Rs 1 lakh in 10 years: Rs 6,38,288
- Absolute Return: 538.29%
SIP returns
- Value of Rs 10 thousand SIP in 10 years: Rs 42,20,576
- Absolute Return: 251.71%, Annulized Return: 23.74%
- Asset Under Management (AUM): Rs 25,145.38 crore
Keep in mind both risk and risk
The small cap funds detailed above may have given excellent returns in the last 10 years, but they are considered quite risky due to their exposure to stocks of smaller companies. All these schemes have been rated “Very High Risk” on Riskometer. Therefore, before investing in small cap funds, investors should understand their risk appetite clearly. Also keep in mind that the share of small cap funds in your portfolio should not exceed 25%. It is better if you invest in equity funds for a long period through SIP.
(Disclaimer: The purpose of this article is only to provide information, not to give investment advice. The past returns of a mutual fund do not guarantee that it will continue in the future. Decisions related to investment should be taken only after consulting an investment advisor.)
