Small Cap Fund long term returns: There is a lot of discussion about short-term returns of small cap funds amidst the upheaval in the stock market. Their 1 month, 3 months and 6 months of returns are looking negative or weak, due to which there is a debate between experts. But the last 5 years of returns of most small cap mutual funds remain very strong. Be it Systematic Investment Plan (SIP) or Lump Sum Investment, Small Cap Mutual Funds have remained above 20% annual returns of the last 5 years.
5 -year SIP Return of Small Cap Funds
A total of 22 small cap mutual funds have a 5 -year SIP return figures on the portal of Value Research, which looks quite attractive despite the recent decline in the stock market. All these funds have given annual returns of about 20 to 35 percent on 5 -year SIP.
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Name of Small Cap Fund / Return on SIP in 5 years
- Quant Small Cap (Direct Plan): 35.25 %
- Bandhan Small Cap (Direct Plan): 33.08 %
- Nippon India Small Cap (Direct Plan): 31.15 %
- Invesco India Smallcap (Direct Plan): 30.32 %
- Tata Small Cap (Direct Plan): 29.10 %
- HSBC Small Cap (Direct Plan): 29.09 %
- Franklin India Smaller Companies (Direct Plan): 28.60 %
- Edelweiss Small Cap (Direct Plan): 28.59 %
- Bank of India Small Cap (Direct Plan): 28.40 %
- LIC MF Small Cap (Direct Plan): 27.71 %
- HDFC Small Cap (Direct Plan): 27.59 %
- ITI Small Cap (Direct Plan): 26.77 %
- Canara Robeco Small Cap (Direct Plan): 26.45 %
- Motilal Oswal Nifty Smallcap 250 Index (Direct Plan): 25.93 %
- Sundaram Small Cap (Direct Plan): 25.83 %
- Kotak Small Cap (Direct Plan): 25.73 %
- DSP Small Cap (Direct Plan): 25.68 %
- ICICI PRU Smallcap (Direct Plan): 25.62 %
- Axis Small Cap (Direct Plan): 25.42 %
- Union Small Cap (Direct Plan): 23.79 %
- SBI Small Cap (Direct Plan): 22.59 %
- ABSL Small Cap (Direct Plan): 20.76 %
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Great profits on lump sum investment
The above data shows how attractive returns have been given to those investing through SIP during the last 5 years. Along with this, those who invest in these funds at one time have also given excellent profits in the last 5 years. There are a total of 19 small cap funds for the last 5 years of returns on the portal of the Association of Mutual Funds in India (AMFI). These figures show that small cap funds have also given 20 to 40 percent returns on the lump sum investment in the last 5 years.
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It is not necessary for the previous returns to continue further
Based on the last 5 years of returns of small cap funds, it can be said that investing for the long term in them has been beneficial. But this does not mean that even further returns will continue to be received on them. This is because the returns of equity mutual funds are affected by the movement of the stock market. Therefore, there is no guarantee of the previous returns to continue in the future. Small cap funds are considered more risky than funds such as large cap, mid cap or flexi cap and multi -cap. That is why investors are usually advised not to keep the share of small cap funds in their portfolio.
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(Disclaimer: The purpose of this article is just to give information, not to recommend investment. Mutual funds are not guaranteed to continue in the future. The decisions related to investment should be taken only by taking the opinion of a SEBI recognized investment advisor. )
