Which Are The Best Small Cap Mutual Funds In India

Which Are The Best Small Cap Mutual Funds In India

Let's set out on a quest to find the top small-cap mutual funds in India like Bandhan mutual fund that provide a financial success story rather than merely returns throughout our financial trip.

FPJ Web DeskUpdated: Wednesday, February 07, 2024, 07:29 PM IST
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Which are the best small cap mutual funds in India | File

The appeal of small-cap funds in the huge mutual fund industry draws in investors looking for big returns and unrealized potential. These funds, often disregarded in favour of their bigger equivalents, are essential for diversifying investment portfolios and boosting the Indian economy's development engine. Let's set out on a quest to find the top small-cap mutual funds in India like Bandhan mutual fund that provide a financial success story rather than merely returns throughout our financial trip.

Mahindra Manulife Small Cap Fund

This direct growth plan is the best of the five small-cap equity funds, returning 54.85% annually. The fund has outperformed the S&P BSE 250 Smallcap TRI, its benchmark index, which has increased by 38.18% over the last year. As of December 14, its asset under management (AUM) was Rs 2659.59 crore, and the direct plan's net asset value (NAV) was Rs 15.52. The cost ratio of the fund is 0.14%.

Bandhan Small Cap Fund 

With an AUM of 3880.25 crores, the Bandhan Small Cap Fund Regular Growth has produced a CAGR of 0.00% during the last five years. The fund has a 1.84% expense ratio and an exit load of 1.00%. The minimum SIP amount is Rs 100, while the minimum investment amount for the Bandhan Small Cap Fund Regular Growth is Rs 1000. 8.43% of the fund's current holdings are cash. REC, Arvind & Apar Industries, Triparty Repo, and REC are among the fund's top holdings.

Franklin India Smaller Companies Fund

This small-cap mutual fund from Franklin Templeton Mutual Fund ranks third among the best small-cap performers with a one-year return of 45.44 percent.

As of December 14, the fund has a NAV of Rs 160.46 and an AUM of Rs 11,100.65 crore. Compared to the category ratio of 0.65%, the fund's expenditure ratio is 0.99%. The fund with a 5-star rating from Crisil has 92.82% of its investment in stocks.

53.86 percent of its investment is in small caps, 2.94 percent is in midcaps, and 2.44 percent is in large caps. Its stake in government securities is 0.46 percent. 

ITI Small Cap Fund

The fund from ITI Asset Management Ltd. ranks fourth on the list with a return of 45.57 percent over the last year. As of October 14, the fund's direct plan's NAV size was Rs 23.02 and its AUM was Rs 1913.02 crore. Comparing the expenditure ratio to the category, it is 0.24 percent vs 0.65 percent. 

Of that percentage, 4.74% is invested in large-cap equities, 11.9 percent in mid-cap stocks, and 54.53 percent in small-cap stocks. The companies in which it has the most shares are Kirloskar Oil Engines Ltd., KPIT Technologies, NCC Ltd., and Jindal Stainless Ltd.

Nippon India Small Cap Fund

The fund is ranked fifth on the list with an AUM of Rs 42,452.51 crore. In the last year, it has returned 42.32 percent. The fund has a NAV of Rs 150.17. 

In summary

Systemic investment plans (SIPs) and lump payments are the two ways in which investors may deposit their money into the best small cap mutual funds. Those who choose option one may put the full amount in at once if they so want. Note that a minimum investment of Rs. 1,000 would be necessary in this particular case. However, investors may establish recurring contributions to a mutual fund plan via SIP (monthly, quarterly, etc.). Here, the minimum monthly payment may be only Rs. 100.

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