Top small-cap funds beating index and category

S&P BSE Small Index is in a serious decline making a series of lower highs and lower lows. However, there are funds that not just have beaten the index, but also its category. Read on to find out more. 

S&P BSE Small-Cap index moved into a declining phase on January 18, 2022, and recently on June 3, 2022, made a death crossover. Death crossover is considered to be a bearish sign and occurs when a 50-Day Exponential Moving Average (EMA) crosses below 200-Day EMA. At the time of writing, it was trading at 25,983.08 up 0.02% (5.08 points). Presently it is hovering around its 23.6% Fibonacci retracement level. On the downside, the next possible level seems to be placed at 25,592.41 and on the upside, 26,967.24 would act as a strong resistance level.

Having said that, the signs of recovery are still not visible. So, it makes complete sense to gradually start accumulating the units of small-cap funds with the help of Systematic Investment Plan (SIP). Even if you wish to invest in lumpsum, first invest in a liquid fund of the respective small-cap funds and then start a Systematic Transfer Plan (STP) from those liquid funds spreading over the next one year.

Doing so will help you gradually accumulate their units at a lower Net Asset Value (NAV) that will help you when the market reverses. And when the markets begin their recovery, it is small-cap funds that rise exponentially when compared to large-cap funds. In this article, we would be listing the top 10 small-cap funds that have outperformed not only the small-cap index but also the category median returns.