Around 93% of small cap mutual funds failed to beat their benchmarks in April. Only 2 out of 27 schemes managed to outperform, emphasizing the riskiness of small cap investments and the need for a high-risk appetite.
Equity mutual funds recorded varying returns in April. Among the 488 schemes, HDFC Defence Fund stood out with a 12.56% return, while Edelweiss US Technology Equity FOF suffered the most with a loss of 5.14%.
SBI Small Cap Fund, the third largest scheme in the small cap category based on assets managed, failed to beat its respective benchmark in a three year period. The scheme offered 24.81% against 30.90% by its benchmark (S&P BSE 250 Small Cap - TRI). The scheme manages assets of Rs 24,861 crore.
Quant Small Cap Fund topped the list with 46.70% SIP returns. Nippon India Small Cap Fund offered 37.92% returns. Quant Mid Cap Fund, Bank of India Small Cap Fund, and Quant ELSS Tax Saver Fund also performed well with returns of 34.45%, 34.44%, and 34.05% respectively. The analysis considered XIRR (% returns) for schemes with a five-year horizon from January 2019 to January 2024.