According to the Sebi mandate, small cap schemes must invest in companies that are ranked below 250 in terms of market capitalisation. These schemes also will have to invest at least 65% in small cap stocks. Small companies go through many ups and downs - more than the established companies in the large and mid cap segments.
Consistent outperformance across different time periods is a stronger indicator of a mutual fund s performance than a single year of good performance. Here are the top large cap mutual funds exceeding benchmark expectations: