Here is an unbiased review of Top 10 Small Cap Equity Funds in India. These are high risk & high return funds. In this Article, We will discuss about Best Small Cap Equity Funds available for Investment in India for 2024. And we will analyze in-depth performance of these list of Small Cap Equity Funds.
What are Small Cap Equity Funds?
Small-cap could be a term accustomed classifies firms with a comparatively little capitalization. A company’s capitalization is that the market price of its outstanding shares. The definition of the little cap will vary among brokerages; however, it’s usually an organization with a capitalization of between $300 million and $2 billion.
It is the professionally managed investment schemes on record of the performance and growth of the funds. Mutual funds that diversify investments in between middle and tiny cap firm’s area unit termed as middle and tiny cap funds. The proportion of investments between midcap and tiny cap might vary from fund to fund.
Small-Cap and Mid-Cap funds ought to be endowed in with a minimum of 7-10 year investment horizon. It’s laborious to present you a recommendation while not the information of your current split across the assorted fund classes.
It’s necessary to seem at your investments from a holistic portfolio perspective once understanding your risk comes objectives. Ideally, corp. funds ought to ideally kind the core holding of any investor’s portfolio. Small-capitalization stocks are wonderful wealth creators over the future, however, can also be quite volatile within the short term.
2018 may be a classic case in purpose, whereby tiny cap stocks have fallen quite considerably and then have tiny cap funds. However, if you are doing so have a protracted term horizon, tiny cap funds will serve you well.
- SIP should be continued for a minimum period of 5 years to get the highest return.
- Never leave the exciting SIPs for low returns.
- Move from debt funds to fixed deposits for certain returns.
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Ranking of Top 10 Small Cap Equity Funds in India
Here is list of Best Small Cap Equity Funds in India:
| Rank | Name of the Small cap Fund | 1 yr. Return | 3 Yr. Return |
| 1 | L&T Emerging Businesses Direct-G | 9.46% | 19.43% |
| 2 | Reliance Small Cap Direct-G | 7.56% | 16.07% |
| 3 | HDFC Small Cap Fund Regular-Growth | -0.77% | 17.25% |
| 4 | Aditya Birla SL Small Cap Direct-G | 19.93% | 12.63% |
| 5 | Franklin India Smaller Companies Direct-G | 12.28% | 11.45% |
| 6 | Kotak Small Cap Direct-G | -12.64% | 10.40% |
| 7 | SBI Small Cap Direct-G | -9.50% | 17% |
| 8 | DSP Small Cap Direct Plan-Growth | 17.79% | 9.18% |
| 9 | HSBC Small Cap Equity Direct-G | -20.15% | 9.01% |
| 10 | Sundaram Select Micro Cap Series VIII Direct-G | 20.21% | 9.50% |
What are Small Cap Funds?
Small caps area unit usually outlined as firms with market caps that area unit but $2 billion. Several little caps area unit young firms with vital growth potential. However, the danger of failure is bigger with small-capitalization stocks than with capitalization and mid-cap stocks.
As a result, small-capitalization stocks tend to be the additional volatile (and thus riskier) than capitalization and mid-cap stocks. Traditionally, small-capitalization stocks have usually underperformed capitalization stocks throughout recessions; however, have outperformed capitalization stocks because the economy has emerged from recessions.
A small cap stock could be a stock of a publically listed company whose capitalization ranges from $300 million to just about $2 billion. The word “cap” during this term refers to a company’s capitalization.
Details of Best Small Cap Equity Funds of 2024:
The below-mentioned mutual funds are in the list of top 10 small cap equity funds in India which you can consider for your next investment.
L&T Emerging Businesses Equity Fund
In the Indian markets with key theme focus are raising firms (small cap stocks). The theme may additionally to boot invest in Foreign Securities. Rising firms are businesses that are usually within the early stage of development and have the potential to grow their revenues and profits at the next rate as compared to the broader market.
This fund for the small cap to invest was launch on May 06, 2014 with a benchmark “S&P BSE Small Cap” the Minimum Investment is of Rs.5000 in this company. The asset size is Rs. 4066.84 Cr and date is 14 March 2014.
The return of this fund is as follows:
| Period | Return |
| 6th Month | -4.40% |
| 1st Year | 9. 46% |
| 3rd Year | 19.43% |
Reliance Small Cap Equity Funds
The primary investment objective of the theme is to come up with long-run capital appreciation by investment preponderantly in equity and equity connected instruments of tiny cap corporations and therefore the secondary objective is to come up with consistent returns by investing in debt and marketable securities.
This fund for the small cap to invest was launch on Jan 01, 2013with a benchmark“ S&P BSE Small Cap” the Minimum Investment is of Rs.5000 in this company. The asset size is Rs. 6007. 68 Cr and date is 30 Sep. 2018.
The return of this fund is as follows:
| Period | Return |
| 6th Month | -4.10% |
| 1st Year | 7.56% |
| 3rd Year | 16.07% |
HDFC Small Cap Fund Regular-Growth Fund
The aim is to provide semi-permanent capital appreciation /income by finance preponderantly in small-capitalization firms. There’s no assurance that the investment objective of the theme is going to be completed.
The benchmark is “S&P BSE 200” the Minimum Investment is of Rs.5000 in this company. The asset size is Rs. 3539.92 Cr and date is 30 Sep. 2018.
The return of this fund is as follows:
| Period | Return |
| 6th Month | -2.10% |
| 1st Year | -0.77% |
| 3rd Year | 17.25% |
Aditya Birla SL Small Cap Fund
The theme seeks to get consistent long-run capital appreciation by investment preponderantly in equity and equity connected securities of tiny cap firms.
This fund for the small cap to invest was launch on Feb 01, 2013with a benchmark “NIFTY SMALLCAP” the Minimum Investment is of Rs.1000 in this company. The asset size is Rs. 1776. 85 Cr and date is 30 Sep 2018.
The return of this Small Cap Equity Funds is as follows:
| Period | Return |
| 6th Month | -10.40% |
| 1st Year | 19.93% |
| 3rd Year | 12.63% |
Franklin India Smaller Companies Direct-G Fund
The theme is stratified three in Small Cap Fund class by Crisil (for quarter complete Sept 2018) rank unchanged from last quarter. If you’re already invested with during this theme, you’ll still keep invested with. But, do keep a check on its performance.
This fund for the small cap to invest was launch on Jan 01, 2013with a benchmark “NIFTY MIDCAP 100” the Minimum Investment is of Rs.5000 in this company. The asset size is Rs. 1558.7 Cr and date is 30 Sep0 2018.
The return of this Small Cap Equity Fund is as follows:
| Period | Return |
| 6th Month | -7.60% |
| 1st Year | 12.28% |
| 3rd Year | 11.45% |
Kotak Small Cap Direct-G Fund
The theme is stratified three in Small Cap Fund class by Crisil (for quarter complete Sept 2018) rank unchanged from last quarter. If you’re already invested with during this theme, you’ll still keep invested with. But, do keep a check on its performance.
This fund for the small cap to invest was launch on Jan 01, 2013 with a benchmark “NIFTY MIDCAP 100” the Minimum Investment is of Rs.5000 in this company. The asset size is Rs. 55.22 Cr and date is 30 Sep0 2018.
The return of this Small Cap Equity Funds is as follows:
| Period | Return |
| 6th Month | -7.00% |
| 1st Year | -12.64% |
| 3rd Year | 10. 40% |
SBI Small Cap Direct-G Fund
To provide investors with opportunities for semi-permanent growth in capital together with the liquidity of an open-ended theme by finance preponderantly in an exceedingly well-varied basket of equity stocks of small-cap firms.
This fund for the small cap to invest was launch on Jan 03, 2001with a benchmark “S&P BSE Small Cap” the Minimum Investment is of Rs.5000 in this company. The asset size is Rs. 211.75 Cr and date is 30 Sep0 2018.
The return of this Small Cap Equity Funds is as follows:
| Period | Return |
| 6th Month | -1.50% |
| 1st Year | -9. 50% |
| 3rd Year | 17.00% |
DSP Small Cap Direct Plan-Growth Small Cap Equity Funds
The primary investment objective is to seek to come up with future capital appreciation from a portfolio that’s considerably recognized of equity and equity connected securities of small-cap firms.
From time to time, the fund manager will obtain participation in different equity and equity connected securities to attain best portfolio construction. There’s no assurance that the investment objective of the theme is complete.
This fund for the small cap to invest was launch on Jan 01, 2013with a benchmark “S&P BSE Small Cap” the Minimum Investment is of Rs.500 in this company. The asset size is Rs. 804.04 Cr and date is 14 March 2014.
The return of this fund is as follows:
| Period | Return |
| 6th Month | -6.60% |
| 1st Year | 17.79% |
| 3rd Year | 9. 18% |
HSBC Small Cap Equity Direct-G Fund – Small Cap Equity Funds
To generate future capital growth from an actively managed portfolio of equity and equity connected securities of preponderantly small-cap firms.
However, it might move a little of its assets towards fixed income securities if the fund manager becomes negative on the Indian equity markets. However, there is no assurance or guarantee that the investment objective of the theme would be achieved.
This fund for the small cap to invest was launch on Jan 01, 2013 with a benchmark “S&P BSE Mid Cap” the Minimum Investment is of Rs.5000 in this company. The asset size is Rs. 0.04 Cr and date is 14 March 2014.
The return of this fund is as follows:
| Period | Return |
| 6th Month | – |
| 1st Year | -20.15% |
| 3rd Year | 9.01% |
Sundaram Select Micro Cap Series VIII Direct-G Fund
To seek capital appreciation by investing predominantly in equity/equity-related instruments of companies that can be termed as micro-caps.
This fund for the small cap to invest was launch on Oct 15, 2015with a benchmark “S&P BSE Small-Cap” the Minimum Investment is of Rs. 5000 in this company. The asset size is Rs. 3.9 Cr and date is 20 Sep. 2018.
The return of this fund is as follows:
| Period | Return |
| 6th Month | -7.20% |
| 1st Year | 20.21% |
| 3rd Year | 9.50% |
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