Small cap mutual funds gave up to 220% returns in 1 year! Should you invest?
The best performing scheme in the category, Quant Small Cap Fund has given 217 per cent returns in the last one year. The second best performer, Kotak Small Cap Fund has generated 139 per cent returns
The lowest returns in the small cap space in the last one year stood at 96 per cent
After almost around 3 years of muted performance, small cap mutual funds have been at the op of the charts for almost an year now. Looking at the trailing returns, the category on an average has generated 120 per cent returns in the last one year. The best performing scheme in the category, Quant Small Cap Fund has given 217 per cent returns in the last one year. The second best performer, Kotak Small Cap Fund has generated 139 per cent returns. According to equity analysts, the reason for the stellar returns and outperformance of small caps over mid and large caps in last one year is the significant valuation gap at the start of the rally.