Small Cap Funds: We have a friend Vivek. Someone had told him that if you invest in such and such shares, your money will double in 6 months. He invested in shares but instead of doubling the money, it was halved. Like Vivek, many people take loss instead of profit from shares. The best way to do this is to choose equity mutual funds for investing in shares. Mutual fund companies have their own research teams, fund managers who try to generate better returns while managing your investments along with the selection of stocks. Today we will discuss small cap funds which have given up to 64% returns in the last 3 years.
Small Cap Funds that have given best returns in 3 years
Quant Small Cap Fund has given a return of 65.26 percent in the last 3 years which is the highest in this category. Nippon India Small Cap Fund came second with a return of 49.90 per cent. ICICI Prudential Small Cap Fund was at the third position, which generated a return of 47.56 per cent. HDFC Small Cap has given a return of 47.18 per cent during this period. HSBC Small Cap has given a return of 46.46 per cent and Canara Robeco Small Cap has given a return of 46.26 per cent. On the other hand, Tata Small Cap has given a return of 46.10 percent and Kotak Small Cap has given a return of 45.79 percent during the same period. (Source of Returns: Value Research, as on June 1, 2023.)
Who should invest in Small Cap?
Small cap funds invest in small cap stocks. Fund managers choose such stocks for investment, which have the highest growth potential. Only small cap companies become mid cap in future. Small cap companies are companies whose market cap is less than Rs 5,000 crore. Small cap companies have more risk than mid cap and large cap companies. According to experts, if you want to invest in equity mutual funds for the long term, you can invest a portion in small cap funds for better returns. The risk associated with it also reduces with the passage of time.
