Smallcap MFs outshine: Top schemes surge up to 12 times in 10 years
Smallcap mutualfunds outperformed largecap and midcap funds with huge margin in the last 10 years. They have a potential to generate relatively higher return if they are held for long term. But they are more volatile than other equity funds
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.
2/10
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).
3/10
Nippon India Small Cap Fund Fund managers: Samir Rachh and Tejas Sheth Last 10 year return (CAGR): 27.8%
4/10
SBI Small Cap Fund Fund manager: R. Srinivasan Last 10 year return (CAGR): 26.1%
