Top Small Cap Funds: Small cap mutual funds have given returns of up to 39 per cent to investors in the last three years.
Top Small Cap Funds: Small cap mutual funds have given investors up to 39 per cent returns in the last three years. The money of this fund is invested in such companies of all sectors whose market cap is 10 crore-500 crore rupees. Mutual funds are a great investment option for investors who are afraid of market volatility, through which they can indirectly take advantage of the market’s boom. Although investing in mutual funds is also associated with risk, but in comparison to investing directly in the market, the risk is less and the returns are also excellent. Small cap mutual funds have increased the capital of investors by about 39 percent in the last three years. One can get returns of more than 20 per cent by investing even just Rs 100 in these funds.
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Here are the best small cap funds of the last three years
Below is a list of the top 10 best performing small cap funds in the last three years and how much one can start investing in the fund. Note that these are all direct plans and growth oriented.
Fund Name | three year return | minimum investment |
Quant Small Cap Fund – Direct Plan – Growth | 39.04% | ₹5000 |
Bank Of India AXA Small Cap Fund – Direct Plan – Growth | 37.72% | ₹5000 |
Canara Robeco Small Cap Fund – Direct Plan- Growth | 34.86% | ₹5000 |
Axis Small Cap Fund – Direct Plan- Growth | 32.4% | ₹5000 |
Edelweiss Small Cap Fund – Direct Plan- Growth | 32.27% | ₹5000 |
Union Small Cap Fund – Direct Plan- Growth | 28.44% | ₹5000 |
Invesco India Small Cap Fund – Direct Plan- Growth | 27.37% | ₹1000 |
Tata Small Cap Fund – Direct Plan- Growth | 27.18% | ₹5000 |
IDBI Small Cap Fund – Direct Plan – Growth | 23.66% | ₹5000 |
Sundaram Small Cap Fund – Direct Plan- Growth | 21.87% | ₹100 |
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That’s why money grows faster in small cap funds
Companies whose market cap is between Rs 5 crore to Rs 500 crore are kept in small cap. Since these companies are still small, their growth potential is very high. In such a situation, they can give more returns than large cap and mid cap. Small cap fund money is invested in these companies. However, keep in mind that the risk in these companies is also very high.
(Disclaimer: Investing in mutual funds is subject to market risks, so please consult an investment advisor before investing your money.)
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