Smallcap MFs outshine: Top schemes surge up to 12 times in 10 years

Smallcap funds have delivered handsomely for the patient investor. These schemes delivered a compounded annualised return (CAGR) of 21 percent over the last 10 years, while midcap funds and largecap funds clocked 19 percent and 14 percent, respectively. Meanwhile, the Nifty 500 TRI gave returns of 15 percent during the period. This has attracted more inflows too. Per AMFI data, smallcap equity funds got the highest net-flows among the equity funds categories of about Rs 25,800 crore over the last one year.

Smallcap funds tend to generate better returns than midcaps and largecaps during an economic recovery, but could underperform in uncertain times. However, smallcap funds have the potential to generate relatively higher returns if they are held long-term. Here are the top smallcap funds that multiplied investors' lump-sum investments up to 12 times over 10 years. Note that past performance is not indicative of future results. (Source: ACEMF).

Nippon India Small Cap Fund
Fund managers: Samir Rachh and Tejas Sheth
Last 10 year return (CAGR): 27.8%

SBI Small Cap Fund
Fund manager: R. Srinivasan
Last 10 year return (CAGR): 26.1%

Also see: Here are the favorite microcap stocks among the smart fund managers – Active MFs, PMSes & AIFs

DSP Small Cap Fund
Fund managers: Vinit Sambre, Resham Jain, Abhishek Ghosh and Jay Kothari
Last 10 year return (CAGR): 24%

Kotak Small Cap Fund
Fund manager: Pankaj Tibrewal
Last 10 year return (CAGR): 21.5%

Franklin India Smaller Cos Fund
Fund managers: R. Janakiraman, Akhil Kalluri and Sandeep Manam
Last 10 year return (CAGR): 21%

Also read: 12 new midcap stocks that PMS fund managers picked in May. Do you own any?

Sundaram Small Cap Fund
Fund managers: Ravi Gopalakrishnan and Rohit Seksaria
Last 10 year return (CAGR): 20.2%

HDFC Small Cap Fund
Fund managers: Chirag Setalvad
Last 10 year return (CAGR): 20%

Also see: Over 1,200% returns in 2 years, but not over yet: MF still hold these multibagger smallcap stocks

Axis Small Cap Fund
Fund managers: Shreyash Devalkar and Vinayak Jayanath
Return from date of inception of Nov 29, 2013 (CAGR): 22.7%

Also read: Cautious of market highs, these largecap stocks exit MF portfolio