Top 5 small-cap mutual funds of 2023: These equity MFs gave over 20% returns in last six months
1 min read 08 Jul 2023, 02:55 PM ISTInvestment in small-cap mutual funds is riskier but can yield higher returns. The top performers in the last six months include HDFC, Franklin India, Nippon India, Tata, and Quant Small Cap Funds
PremiumTop 5 small-cap mutual funds of 2023: Investment in small-cap mutual funds is associated with higher risk levels compared to large and mid-cap funds as they invest in lesser-known and under-researched companies. Small cap schemes can witness intense volatility and higher downside, particularly during bearish market phases. but they can even outperform all categories of mutual funds over the long term.
The data released by the Association of Mutual Funds of India (Amfi) explicitly states that small-cap funds, among all categories, were the biggest beneficiaries of a huge inflow of funds in the last six months.
Top small-cap MF performers in last six months
HDFC Small Cap Fund- Direct Plan
The direct plan of HDFC Small Cap Fund has given 21.13% returns in the last six months. The scheme tracks S&P BSE 250 SmallCap Total Return Index.
Franklin India Smaller Companies Fund - Direct Plan
The direct plan of Franklin India Smaller Companies Fund has given 20.36% annualised returns in the last six months The scheme tracks NIFTY Smallcap 250 Total Return Index.
Nippon India Small Cap Fund - Direct Plan
The direct plan of Nippon India Small Cap Fund has given 19.79% annualised returns. The scheme tracks NIFTY Smallcap 250 Total Return Index
Tata Small Cap Fund - Direct Plan
The direct plan of Tata Small Cap Fund has given 15.48% annualised returns from January to July The scheme tracks NIFTY Smallcap 250 Total Return Index, which has given 32.79% returns in one year.
Quant Small Cap Fund - Direct Plan
The direct plan of Quant Small Cap Fund has given 13.05% returns in the last six months. The scheme tracks NIFTY Smallcap 250 Total Return Index.
Meanwhile, capital market watchdog Sebi on Friday came out with a regulatory framework for private equity (PE) funds sponsoring a mutual fund house as well as for self-sponsored Asset Management Companies (AMCs).
Under the framework for PE funds, Sebi said the applicant is required to have a minimum of five years of experience in the capacity of fund manager and an experience of investing in the financial sector. It should have managed, committed, and drawn-down capital of at least ₹5,000 crore.
This is based on data available on Value Research
