Small Cap Mutual Funds are those schemes that invest in small companies that have high growth perspective and limited risk. The market capitalization of such companies limits between a minimum of 10 Cr and a maximum of 500 Cr i.e. an investment of around 65% of the overall assets of equity and equity-related tools of small-cap companies. The chances of returns in such companies are quite high in the bull phase of the market. These funds are most suitable to aggressive investors who have a medium to longer-term investment perspective and also expecting higher returns. Here we will discuss the Top 10 Small Cap Mutual Funds to Invest in 2019.
Best Small Cap Mutual Funds to Invest in 2019 India:
- SBI Small Cap Fund – SBI Small Cap Fund an equity oriented fund introduced on 9 Sep 2009 and has AUM amounting to approximately Rs 943 Cr. The fund has holdings in Kirloskar Oil Engines Ltd, Relaxo Footwear, Westlife Development Ltd, Hawkins Cooker Ltd etc. The fund has outperformed its benchmark consistently by generating returns of 20.9% since incorporation along with a return of 78.7 in 2017 and therefore ranked 4 among the Top 10 Small-Cap Mutual Funds to Invest in 2019.
- L&T Emerging Businesses Fund – L&T Emerging Businesses Fund is an equity-related scheme set-up on 12 May 2014 and is best Small Cap Mutual Funds to invest. The fund has an approximate AUM of Rs 4,286 Cr. The fund generated a CAGR return of 25.6% since incorporation and has consistently outperformed its benchmark along with a return of 66.5% for the year 2017, henceforth ranked 2 in the Small-Cap field.
- Aditya Birla Sun Life Small Cap Fund – Aditya Birla Sun Life Small Cap Fund was established on 31 May 2007 as an open-ended Small and Mid-Cap Equity Scheme. The fund invests in equities and equity-related securities and also in fixed income securities and therefore generated a CAGR OF 12.6% since incorporation. The company produced a return of 56.7% and ranked 1 in the small-cap group.
- HDFC Small Cap Fund – HDFC Small Cap Fund is an equity-oriented small-cap fund introduced on 3 April 2008. The fund follows an objective of capital appreciation through investments in small and mid-cap companies. The fund generated a CAGR return of 15.6% since incorporation and ranked 9 in the small-cap arena with a profound return of 60.8% for 2017.
- Reliance Small Cap Fund – Reliance Small Cap Fund is an equity-oriented small-cap fund incorporated on 16 Sep 2010. The fund has an AUM of almost Rs 6,371 Cr along with CAGR return of 20.4% since commencement. The fund is ranked 6 in the small-cap group with tremendous returns of 63% in 2017.
- Franklin India Smaller Companies Fund – Franklin India Smaller Companies Fund was incorporated in 13Jan 2006 with an investment objective of long-term capital appreciation through investments in small-cap companies. The fund generated a CAGR return of 14.7% since commencement also an excellent return of 43.5% for 2017, henceforth ranked 11 in the small-cap group.
- DSP BlackRock Small Cap Fund – DSP BlackRock Small Cap Fund was established on 14 June 2007 along with an investment objective of long-term capital growth through a portfolio of equity-related stocks of small-cap companies. The fund generated a CAGR return of 17.1% since incorporation and a profound return of 42.8%in 2017, therefore ranked 7 in small-cap arena.
- Kotak Small Cap Fund – Kotak Small Cap Fund is an equity-oriented small-cap fund introduced on 24Feb 2005. The fund follows the goal of capital appreciation through a diversified basket of equity and equity-related stocks. The company managed a CAGR return of 16% since commencement and an enormous return of 44% for 2017 along with a rank of 23 among the small-cap group.
- ICICI Prudential Small cap Fund – ICICI Prudential Small-cap Fund is an Indo Asia Equity Fund incorporated on 18 October 2007 and since then has managed a CAGR return of 9% through investments in share classes of international Opportunities Fund Asian Equity Fund and listed equity shares of Asia Pacific region. The fund produced an excellent return of 42.7% in 2017. Henceforth gets enlisted in the Top 10 Small Cap Mutual Funds to Invest in 2019 and ranked 26 in Small-cap group.
- Sundaram Small Cap Fund – Sundaram Small Cap Fund was incorporated on 15 Feb 2005 with an investment objective of capital growth through investments in diversified stocks of small and mid-cap stocks as well as other equities. The fund produced a profound return of 55.6% in 2017 and a CAGR return of 17.3% since commencement, therefore ranked 19 among the Small Cap Mutual Funds to Invest.
Investors have to consider a lot of factors before investments in small-cap mutual funds and risk appetite and investment goals are one of them. A skilled and experienced fund advisor like Udta Paisa can help choose the Best Small Cap Mutual Funds to invest in 2019 India along with best discounts and offers related to the above stocks.