Five small cap schemes have offered more than 25% in a five year horizon based on daily rolling returns, data crunching by ETMutualFunds showed. We looked at the daily rolling returns of 19 small cap schemes that have completed five years in the market.
Bank of India Small Cap Fund, the topper in the list, offered 31.01% in a five year horizon. The scheme is benchmarked against Nifty Smallcap 250 - TRI, which offered approximately 10%. Edelweiss Small Cap Fund offered 29.83% against 9.99% by its benchmark (Nifty Smallcap 250 - TRI).
Canara Robeco Small Cap Fund offered 27.39% during the same time period. The scheme is benchmarked against Nifty Smallcap 250 - TRI which offered 10.01%.
Also Read | These 4 equity mutual fund categories offered over 20% returns in 10 years
The other two schemes in the list also managed to beat their respective benchmarks during the same time period.
Nippon India Small Cap Fund, the largest small cap scheme based on assets managed, failed to offer more than 25%. SBI Small Cap Fund, which manages assets of more than Rs 20,000 crore, also failed to offer more than 25%.
The small cap funds offered an average return of around 12.47% in a five year period. Small cap schemes are benchmarked against Nifty Smallcap 100 - TRI, Nifty Smallcap 250 - TRI, and S&P BSE 250 Small Cap - TRI.
All these 19 small cap schemes returns ranging between 8.64 - 31.01% in a five year period.
We considered all the small cap schemes that have been in the market for five years for the study. We considered regular and growth options.
Note, this exercise is not a recommendation. This exercise was just to find small cap schemes that have offered more than 25% returns in a five year horizon.
One should not make investment or redemption decisions based on the above exercise. One should always consider goals, investment horizons, and risk appetite before making investment decisions.
Also Read | Best small cap mutual funds to invest in 2024
Small cap schemes are always considered risky. However, they also have the potential to deliver very high returns over a long period of time. The trouble is these schemes are also notorious for their very long bear phases. When the market gets into a lean phase small cap segments lose heavily as investors look for safer investment options. Small cap companies also have corporate governance issues.
This is why ETMutualFunds do not recommend small cap schemes to new and inexperienced investors. We always tell investors to gain experience and knowledge before investing in small cap schemes. We believe that only investors with a very high risk appetite and stomach for volatility should invest in small cap schemes. They also should have a long investment horizon of, say, seven to 10 years.
If you are looking for recommendations, see: Best small cap mutual funds to invest in 2024
FAQs
Here are 5 mutual fund schemes with highest 3-year returns along with their expense ratios: Quant Small Cap Fund(G) tops the chart with over 39% returns followed by Quant Mid Cap Fund(G), Nippon India Small Cap Fund(G), Quant Flexi Cap Fund(G) and Motilal Oswal Midcap Fund-Reg(G) in the same pecking order. 1.
Which mutual fund has highest return in last 5 years? ›
Highest Return Mutual Funds in Last 5 Years
Fund Name | 3 Years Return | 5 Years Return |
---|
DSP India T I G E R Fund (G) | 38.1% | 26.8% |
Tata Infrastructure Fund (G) | 35.7% | 26.4% |
SBI Contra Fund (G) | 31.9% | 26.2% |
Nippon India Growth Fund (G) | 30.4% | 26.1% |
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How much return can I expect from mutual funds in 5 years? ›
The recent performance surge has lifted the category scorecard of healthcare funds, with an average return of 59% over a one-year period, a compounded annual growth rate (CAGR) of 18% over a three-year period, and 23% CAGR over a five-year period. This is as per the latest data from Value Research.
Which small cap fund is best for 5 years? ›
Small Cap Mutual Funds: Five year performance
- Bank of India Small Cap Fund. 30.81%
- Edelweiss Small Cap Fund. 29.09%
- Canara Rob Small Cap Fund. 26.93%
- Tata Small Cap Fund. 26.08%
- Invesco India Smallcap Fund. 25.43%
Which manager's small cap fund gave 40% CAGR returns in 3 years? ›
Canara Robeco is the 16th largest fund house in the MF industry and its schemes have been doing well recently. Take the case of Canara Robeco Small Cap Fund—managed by Bhandwaldar and Ajay Khandelwal. The scheme has delivered 40% compounded annual growth rate (CAGR) returns in just three years.
Which small cap fund gives the highest return? ›
List of Small Cap Mutual Funds in India
Fund Name | Category | 1Y Returns |
---|
Axis Small Cap Fund | Equity | 41.3% |
Quant Small Cap Fund | Equity | 70.4% |
Nippon India Small Cap Fund | Equity | 60.5% |
Edelweiss Small Cap Fund | Equity | 50.5% |
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Which mutual funds give 30% return? ›
4 equity mutual funds offered over 30% returns in 3 & 5 years
- IANS. 1/6. Top Gainers. ...
- iStock. 2/6. Nippon India Small Cap Fund. ...
- iStock. 3/6. Quant Flexi Cap Fund. ...
- Getty Images. 4/6. Quant Mid Cap Fund. ...
- iStock. 5/6. Quant Small Cap Fund. ...
- Agencies. 6/6. Interested to invest?
Which mutual fund gives 20 percent return? ›
What are ELSS funds?
ELSS Funds | 3-year-returns (%) (regular) |
---|
Kotak ELSS Tax Saver Fund | 21.11 |
Motilal Oswal ELSS Tax Saver Fund | 25.21 |
Nippon India ELSS Tax Saver Fund | 21.96 |
Parag Parikh ELSS Tax Saver Fund | 21.76 |
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Which SIP gives 30% return? ›
Quant Flexi Cap Fund, Quant Active Fund, and Quant ELSS Tax Saver Fund - a flexi cap, multi cap, and an ELSS fund from Quant Mutual Fund, offered 33.49%, 30.58%, and 34.05% respectively. HDFC Mid-Cap Opportunities Fund, the largest scheme in the mid cap category based on assets managed, offered 30.52%.
How to earn 10% interest per month? ›
Here's my list of the 10 best investments for a 10% ROI.
- How to Get 10% Return on Investment: 10 Proven Ways.
- High-End Art (on Masterworks)
- Invest in the Private Credit Market.
- Paying Down High-Interest Loans.
- Stock Market Investing via Index Funds.
- Stock Picking.
- Junk Bonds.
- Buy an Existing Business.
Assuming the average return on investment from SDI is 14% annually, you will need to invest approximately INR 43,00,000 to get INR 50,000 a month.
Can mutual funds give 50% return? ›
Around five equity mutual fund categories have offered over 50% returns in one year, according to data provided by Value Research. We have considered all equity and equity-oriented categories for the analysis. These categories offered returns ranging between 50.67 and 94.10% in a one-year horizon.
Which small-cap fund is best in 2024? ›
Frequently Asked Questions
Fund Name | Fund Category | 5 Year Return (Annualized) |
---|
DSP Small Cap Fund | Equity | 26.75 % p.a. |
Edelweiss Small Cap Fund | Equity | 31.15 % p.a. |
Tata Small Cap Fund | Equity | 30.3 % p.a. |
Mahindra Manulife Small Cap Fund | Equity | NA |
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What is the disadvantage of small-cap fund? ›
Small-cap mutual funds perform well over a long period of time. However, over a short period of time, they tend to be very volatile. So if you plan on withdrawing/redeeming your money from the mutual fund early, you could suffer losses. Sure, you could also make gains, but there is always the risk.
Does small-cap value really outperform? ›
Small, but mighty
Not only have small-cap stocks historically outperformed their larger peers, but they've done so strongly, by an annual average of more than 300 basis points (bps), and consistently, more than 69% of the time (Figure 1).
Which mutual fund has the highest rate of return? ›
Best-performing U.S. equity mutual funds
Ticker | Name | 5-year return (%) |
---|
MAEIX | MoA Equity Index Fund | 13.40% |
BSPSX | iShares S&P 500 Index Service | 13.33% |
VLACX | Vanguard Large Cap Index Investor | 13.30% |
GRMSX | Nationwide S&P 500 Index Svc | 12.92% |
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Which mutual fund has highest return history? ›
Fund House Fund Category Fund Rank and Ratios Fund Parameters Investment Parameters Filter
Scheme Name | Plan | 1Y |
---|
Canara Robeco ELSS Tax Saver Fund - Direct Plan - Growth | Direct Plan | 33.83% |
Bank of India ELSS Tax Saver - Direct Plan - Growth | Direct Plan | 56.36% |
Invesco India ELSS Tax Saver Fund - Direct Plan - Growth | Direct Plan | 43.10% |
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What mutual funds have the highest returns? ›
Top 25 Mutual Funds
Rank | Symbol | Fund Name |
---|
1 | VSMPX | Vanguard Total Stock Market Index Fund;Institutional Plus |
2 | FXAIX | Fidelity 500 Index Fund |
3 | VFIAX | Vanguard 500 Index Fund;Admiral |
4 | VTSAX | Vanguard Total Stock Market Index Fund;Admiral |
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Which mutual fund has the highest return in one year? ›
Highest Return Mutual Funds in Last 1 Year
Fund Name | 6 Months Return | 1 Year Return |
---|
ICICI Prudential Manufacturing Fund (G) | 38.0% | 64.6% |
Quant Large and Mid Cap Fund (G) | 43.2% | 63.4% |
Bank of India Manufacturing & Infra fund (G) | 33.7% | 60.7% |
Motilal Oswal Midcap fund (G) | 31.0% | 60.4% |
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