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.
Quant Small Cap Fund topped with 14.21% return, excelling among 27 smallcap schemes in 2024. Bandhan, ITI, Nippon, Axis, and UTI Small Cap Funds had varying performances. Consider risk appetite and investment horizon before choosing small cap schemes.
Around 81% of smallcap mutual funds have underperformed their benchmarks in 2024. Only five out of 27 schemes managed to outperform. The smallcap space faces challenges due to overvaluation and regulatory pressures, impacting investor decisions and fund performances.
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.
Bank of India Small Cap Fund, the topper in the list, offered 31.01% in a five year horizon. The scheme is benchmarked against Nifty Smallcap 250 - TRI, which offered approximately 10%.