Small Cap Mutual Funds: If we look at the average of the last few months, there has been a good amount of investment in small cap funds. One reason for this is that in recent times small cap stocks (Small Cap Stocks)outperformed. Therefore, to get better returns, investors liked the small cap category of mutual funds. The result of this was also seen when not only the 1 or 2 year returns of small cap funds but also the long term returns have become stronger. Here we have given information about 5 such small cap mutual funds, which have performed best in the last 10 years (Small Cap Funds Return)Have done. Investors’ money in these schemes has increased 10 times in 10 years. Should remain.
What are small cap funds?
Small-cap mutual funds mainly invest in shares of companies with market capitalization of less than Rs 5,000 crore. It is a sub-category of equity mutual funds and their performance is affected by market fluctuations. Small cap companies show more volatility during market decline. However, the best small-cap mutual funds have the potential to deliver high returns in the long run. In small-cap funds, the fund manager invests at least 65 per cent of the portfolio in small-cap stocks. Funds with top returns in 10 years…
Nippon India Smallcap Fund
Return on lump sum investment in 10 years: 26.36% per annum
Absolute return on lump sum investment in 10 years: 940%
Value of investment of Rs 1 lakh in 10 years: Rs 10,40,092
Return on SIP investment in 10 years: 25.02% per annum
Total Assets: Rs 45749 crore
Expense ratio: 1.52%
SBI Smallcap Fund
Return on lump sum investment in 10 years: 25.38% per annum
Absolute return on lump sum investment in 10 years: 863%
Value of investment of Rs 1 lakh in 10 years: Rs 9,62,777
Return on SIP investment in 10 years: 21.77% per annum
Total Assets: Rs 27759.65 crore
Expense ratio: 1.62%
Axis Small Cap Fund
Return on lump sum investment in 10 years: 23.83% per annum
Absolute return on lump sum investment in 10 years: 750%
Value of investment of Rs 1 lakh in 10 years: Rs 8,50,042
Return on SIP investment in 10 years: 22.52% per annum
Total Assets: Rs 20136.63 crore
Expense ratio: 0.52%
DSP Smallcap Fund
Return on lump sum investment in 10 years: 22.32% per annum
Absolute return on lump sum investment in 10 years: 651%
Value of investment of Rs 1 lakh in 10 years: Rs 7,51,330
Return on SIP investment in 10 years: 19.64% per annum
Total Assets: Rs 13038.55 crore
Expense ratio: 1.77%
Kotak Smallcap Fund
Return on lump sum investment in 10 years: 21.71% per annum
Absolute return on lump sum investment in 10 years: 615%
Value of investment of Rs 1 lakh in 10 years: Rs 7,14,698
Return on SIP investment in 10 years: 20.77% per annum
Total Assets: Rs 14815.19 crore
Expense ratio: 1.65%
(Source: Value Research, Cleartax, Groww)
Features of small cap funds
As per SEBI rules, small-cap funds have to allocate at least 65 percent of their investment corpus to small-cap stocks.
Smallcaps have higher risk levels in the medium term than midcaps and largecaps, but they can give higher returns and outperform other categories in the long term.
Small-cap companies have more scope for expansion, which increases the growth potential.
Through these the portfolio is balanced.