The domestic stock market is engaged in making new records one after the other. On Friday, both BSE Sensex and NSE Nifty created new all-time high records. Small cap funds are at the forefront of this market rally. This is the reason why they remain a favorite for mutual funds as well. Let us know how to choose the best small cap fund for yourself…
Small cap fund got so much investment
If you look at the market data, small cap funds are not only ahead in returns, but are also on top in terms of fund collection. year 2023 Small cap funds alone account for 25 per cent of the total fresh inflows received by mutual funds during the first six months of 2016. In these six months, an amount of Rs 18,000 crore has been put into such funds.
Record of returns compared to the market
In terms of returns, BSE Sensex and NSE Nifty have given 21-22 per cent returns during the last one year, while large cap and mid cap funds have given returns of 23 per cent and 30 per cent respectively in the same period. Small Cap Fund has left them all behind with 34% returns. The best funds have given more than 45% returns.
10 Best Small Cap Funds:
| Scheme Name | last 1 year return |
| HDFC Small Cap Fund – Direct Plan – Growth | 45.56% |
| Quant Small Cap Fund – Direct Plan – Growth | 41.06% |
| Franklin India Smaller Companies Fund – Direct – Growth | 40.75% |
| Nippon India Small Cap Fund – Direct Plan – Growth | 39.47% |
| Tata Small Cap Fund – Direct Plan – Growth | 39.41% |
| ITI Small Cap Fund – Direct Plan – Growth | 35.60% |
| HSBC Small Cap Fund – Direct Plan – Growth | 34.29% |
| Invesco India Smallcap Fund – Direct – Growth | 33.92% |
| Edelweiss Small Cap Fund – Direct Plan – Growth | 33.40% |
| Sundaram Small Cap Fund – Direct Plan – Growth | 33.21% |
Keep these things in mind while choosing
Now the year arises how to choose the best small cap funds to invest in… Let us help you. Before investing, first of all, it should be seen how the portfolio of the fund is. Keep in mind that small cap funds give better returns, but they are also more volatile. In such a situation, analysis of the stocks included in the portfolio becomes necessary. Apart from this, it is also important to know about the fund manager. How a fund will perform depends to a large extent on the strategy of the fund manager. Now the most important thing is that one should not make the mistake of estimating the performance of the coming time according to the past return i.e. the existing pattern of returns.
Disclaimer: The information provided here is for information only. It is important to mention here that investing in the market is subject to market risks. Always take expert advice before investing money as an investor. It is never advised here to invest money on behalf of ABPLive.com.
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