According to the Securities and Exchange Board of India (SEBI), small-cap schemes need to invest at least 65 per cent of their total investment in small-cap companies. Small-cap stocks are highly sensitive to market volatility. Therefore, when the market collapses, these stocks are probably the worst affected. Hence, it is important to have a long-term investment window while investing in small cap funds so that you give sufficient time to your investment to generate high returns. Thus, let’s explore the top 5 Small Cap Mutual Funds with highest returns in 10 years. Let’s see how Rs 15,000 monthly investment in No. 1 scheme has sprung to Rs 65.76 lakh.
Quant Small Cap Fund
In 10 years, Quant Small Cap Fund has given a 24.29 per cent annualised SIP return. Its assets under management (AUM) are Rs 22,832 crore, while its net asset value (NAV) is Rs 244.41. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 17.43 per cent since its launch in January 2013.
With an expense ratio of 0.69 per cent, the fund has Rs 1,000 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment. With a monthly SIP of Rs 15,000 and a total investment of Rs 18,00,000 in 10 years, the fund has given a total of Rs 65,76,000. The fund has 65.75 per cent small cap stocks in its equity holdings.
Nippon India Small Cap Fund
Nippon India Small Cap Fund has given a 22.91 per cent annualised SIP return in 10 years. Its assets under management (AUM) are Rs 50,826 crore, while its net asset value (NAV) is Rs 165.37. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 24.71 per cent since its launch in January 2013.
With an expense ratio of 0.73 per cent, the fund has Rs 500 as a minimum SIP investment. With a monthly SIP of Rs 15,000 and a total investment of Rs 18,00,000 in 10 years, the fund has given a total of Rs 60,37,000. The fund has 67.12 per cent small cap stocks in its equity holdings.
HSBC Small Cap Fund
In 10 years, the HSBC Small Cap Fund has given a 19.69 per cent annualised SIP return. Its assets under management (AUM) are Rs 13,334 crore, while its net asset value (NAV) is Rs 78.49. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 20.78 per cent since its launch in April 2014.
With an expense ratio of 0.65 per cent, the fund has Rs 1,000 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment. With a monthly SIP of Rs 15,000 and a total investment of Rs 18,00,000 in 10 years, the fund has given a total of Rs 50,75,000. The fund has 70.76 per cent small cap stocks in its equity holdings.
Franklin India Smaller Companies
Franklin India Smaller Companies has given an 18.02 per cent annualised SIP return in 10 years. Its assets under management (AUM) are Rs 11,257 crore, while its net asset value (NAV) is Rs 169.21. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 20.48 per cent since its launch in January 2013.
With an expense ratio of 0.98 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment. With a monthly SIP of Rs 15,000 and a total investment of Rs 18,00,000 in 10 years, the fund has given a total of Rs 46,38,000. The fund has 75.61 per cent small cap stocks in its equity holdings.
HDFC Small Cap Fund
In 10 years, HDFC Small Cap Fund has given a 19.43 per cent annualised SIP return. Its assets under management (AUM) are Rs 28,120 crore, while its net asset value (NAV) is Rs 134.53. Benchmarked against BSE 250 SmallCap TRI, the fund has given annualised returns of 19 per cent since its launch in January 2013.
With an expense ratio of 0.93 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 1,000 as the minimum lump sum investment. With a monthly SIP of Rs 15,000 and a total investment of Rs 18,00,000 in 10 years, the fund has given a total of Rs 50,02,000. The fund has 80.03 per cent small cap stocks in its equity holdings.
DISCLAIMER: Not financial advice; invest at your own risk
