Top performing small-cap funds to invest in!

Top performing small-cap funds to invest in!

Mutual Funds
by 5paisa Research Team Last Updated: 2022-09-06T16:13:41+05:30

A change in trend is seen in small caps. Moreover, small-cap funds are outperforming large caps. Read on to find out about top-performing small-cap funds.

Nifty Small-Cap 100 index made an all-time high of 12,047.45 in January 2022. However, witnessed a sell-off making lower highs and lower lows. Before the current rally, it made a low of 7,904.9.

Presently it is hovering at 9,795.5, a rise of 24% from the lows made in June 2022. Have you missed this rally? Don’t worry. In the month of August 2022, rather than making a lower high, it ended higher.

This shows a change in its trend. Moreover, in the period of the rally, on average small-cap funds delivered returns of 22%. The highest returns produced by a small-cap fund was 25.49%, while the lowest returns produced in this period were around 17.45%.

In the period ranging from June 20, 2022, to date, only 13% of the funds were able to beat Nifty Small-Cap 100 index. Does this mean that small-cap funds are not able to beat the index?

Judging in such a short period is not justifiable. Hence, it makes sense to look at it from a long-term perspective. To understand this, we took the rolling returns of top-performing funds based on 5-year trailing returns and compared them with the index.

5-Year Rolling Returns (%) 

Average 

Maximum 

Minimum 

Equity: Small-Cap 

15.1 

26.5 

0.6 

Nifty Small-Cap 100 Index 

6.1 

14.9 

-9.4 

As can be seen, based on 5-year rolling returns over 10 years, the category average returns of small-cap funds are better than that of small-cap index. This shows that in the long-term small-cap funds are able to beat the index.

Below we have listed top performing small-cap funds.

Trailing Returns (%) 

1-Year 

3-Year 

5-Year 

10-Year 

SBI Small-Cap Fund 

17.2 

32.9 

19.1 

26.1 

IDBI Small-Cap Fund 

20.1 

31.8 

13.5 

-- 

Nippon India Small-Cap Fund 

15.1 

37.8 

18.2 

25.1 

ICICI Prudential Small-Cap Fund 

12.0 

32.1 

15.6 

17.4 

Edelweiss Small-Cap Fund 

13.0 

36.3 

-- 

-- 

 
 

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About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial. Also, The

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