Top Performing Small Cap Funds in 1 Year

The table below shows Top Performing Small Cap Funds in 1 Year based on AUM, NAV, and Minimum SIP.

Introduction to Top Performing Small Cap Funds in 1 Year

Nippon India Small Cap Fund

Nippon India Small Cap Fund is a Small Cap Fund with an AUM of ₹60,372.55 Crores, a 5-year CAGR of 40.48%, and an expense ratio of 0.63%, with an exit load of 1%.

Nippon India Small Cap Fund Direct Growth is an Equity Mutual Fund Scheme launched by Nippon India Mutual Fund. This scheme was made available to investors on 30 Jun 1995. The fund’s asset allocation consists of 96% in equity, 0% in debt, and 4% in cash, reflecting a predominantly equity-focused investment strategy with minimal liquidity holdings.

HDFC Small Cap Fund

HDFC Small Cap Fund is a Small Cap Fund with an AUM of ₹33,181.88 Crores, a 5-year CAGR of 32.22%, and an expense ratio of 0.64%, with an exit load of 1%.

HDFC Small Cap Fund Direct Growth is an Equity Mutual Fund Scheme launched by HDFC Mutual Fund. This scheme was made available to investors on 10 Dec 1999. The fund allocates 92.9% to equity and 7.1% to cash, with no debt investments, focusing mainly on equity exposure while maintaining a small liquidity buffer.

SBI Small Cap Fund

SBI Small Cap Fund is a Small Cap Fund with an AUM of ₹32,761.17 Crores, a 5-year CAGR of 32.10%, and an expense ratio of 0.65%, with an exit load of 1%. 

SBI Small Cap Fund Direct Growth is an Equity Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987. The fund’s asset allocation includes 93.1% in equity and 6.9% in cash, without any debt holdings, emphasizing equity investments with a moderate cash reserve.

Axis Small Cap Fund

Axis Small Cap Fund is a Small Cap Fund with an AUM of ₹23,399.15 Crores, a 5-year CAGR of 31.94%, and an expense ratio of 0.54%, with an exit load of 1%. 

Axis Small Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Axis Mutual Fund. This scheme was made available to investors on 04 Sep 2009. The fund’s portfolio consists of 91.9% equity, 6.9% debt, and 1.2% cash, offering a balanced approach between equity and debt with a small cash component.

Quant Small Cap Fund

Quant Small Cap Fund is a Small Cap Fund with an AUM of ₹22,967.17 Crores, a 5-year CAGR of 52.34%, and an expense ratio of 0.64%, with an exit load of 1%. 

Quant Small Cap Fund Direct Plan-Growth is an Equity Mutual Fund Scheme launched by Quant Mutual Fund. This scheme was made available to investors on 15 Apr 1996. The fund has allocated 84.3% to equity, 1% to debt, and 14.7% to cash, providing a diversified approach with significant liquidity and moderate equity exposure.

Kotak Small Cap Fund

Kotak Small Cap Fund is a Small Cap Fund with an AUM of ₹17,507.11 Crores, a 5-year CAGR of 36.17%, and an expense ratio of 0.49%, with an exit load of 1%.

Kotak Small Cap Fund Direct Growth is an Equity Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. This scheme was made available to investors on 05 Aug 1994. The fund has allocated 96.2% to equity and 3.8% to cash, with no debt, emphasizing a primarily equity-driven portfolio with a small cash reserve.

HSBC Small Cap Fund

HSBC Small Cap Fund is a Small Cap Fund with an AUM of ₹16,396.94 Crores, a 5-year CAGR of 34.32%, and an expense ratio of 0.68%, with an exit load of 1%.

HSBC Small Cap Fund Direct Growth is an Equity Mutual Fund Scheme launched by HSBC Mutual Fund. This scheme was made available to investors on 27 May 2002. With 98.3% in equity and 1.7% in cash, this fund focuses heavily on equity with minimal cash and no debt allocation.

DSP Small Cap Fund

DSP Small Cap Fund is a Small Cap Fund with an AUM of ₹16,084.62 Crores, a 5-year CAGR of 34.52%, and an expense ratio of 0.81%, with an exit load of 1%.

DSP Small Cap Direct Plan-Growth is an Equity Mutual Fund Scheme launched by DSP Mutual Fund. This scheme was made available to investors on 16 Dec 1996. The fund’s allocation includes 94.3% in equity and 5.7% in cash, with no debt, offering strong equity exposure and a moderate liquidity buffer.

Franklin India Smaller Cos Fund

Franklin India Smaller Cos Fund is a Small Cap Fund with an AUM of ₹14,474.51 Crores, a 5-year CAGR of 33.06%, and an expense ratio of 0.91%, with an exit load of 1%.  

Franklin India Smaller Companies Direct Fund Growth is an Equity Mutual Fund Scheme launched by Franklin Templeton Mutual Fund. This scheme was made available to investors on 19 Feb 1996. The fund has 96.3% invested in equity, 0.2% in debt, and 3.5% in cash, providing a balanced portfolio with slight debt exposure and cash reserves.

Canara Rob Small Cap Fund

Canara Robeco Small Cap Fund is a Small Cap Fund with an AUM of ₹11,499.07 Crores, a 5-year CAGR of 39.06%, and an expense ratio of 0.42%, with an exit load of 1%.

Canara Robeco Small Cap Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Canara Robeco Mutual Fund. This scheme was made available to investors on 19 Dec 1987. The fund’s portfolio consists of 96.4% equity and 3.6% cash, reflecting a high equity allocation and no debt holdings.

What Are Small Cap Funds?

Small Cap Funds are equity mutual funds that invest primarily in companies with a small market capitalization, typically ranked below the top 250 listed companies. These funds aim for high growth potential but come with higher volatility and risk due to smaller company sizes.

Features Of Top Performing Small Cap Funds in 1 Year

The main features of top-performing Small Cap Funds in 1 year include high growth potential, strong fund management, sector diversification, and volatility management. These funds offer the opportunity for substantial returns while requiring a keen understanding of market conditions.

• High Growth Potential: Small Cap Funds focus on smaller companies with the potential for rapid expansion, which can lead to significant returns if these companies perform well in the market.

• Strong Fund Management: Successful Small Cap Funds are often managed by experienced fund managers who can identify promising small companies and manage associated risks effectively.

• Sector Diversification: Top-performing funds tend to spread their investments across multiple sectors, reducing the impact of poor performance in any single sector.

• Volatility Management: While small caps are typically more volatile, top-performing funds use strategies to minimize downside risk while maximizing potential returns over time.

Best Performing Small Cap Funds in 1 Year

The table below shows Best Performing Small Cap Funds in 1 Year based on Expense Ratio and Minimum SIP.

Top Performing Small Cap Funds in 1 Year In India

The table below shows the Top Performing Small Cap Funds in 1 Year In India based on CAGR 3Y and Minimum SIP.

Top Performing Small Cap Funds in 1 Year List 

The table below shows Top Performing Small Cap Funds in 1 Year List based on Exit Load and AMC.

Factors To Consider When Investing In Top Performing Small Cap Funds in 1 Year

The main factors to consider when investing in top-performing Small Cap Funds in 1 year include market conditions, fund manager expertise, risk tolerance, and portfolio diversification. These factors can significantly influence the performance and suitability of the fund for your portfolio.

• Market Conditions: Small cap stocks tend to perform well during market upswings but can be highly volatile in downturns. Understanding the market cycle is key before investing.

• Fund Manager Expertise: A skilled fund manager with experience in small caps can identify emerging companies with high growth potential while managing risk effectively.

• Risk Tolerance: Small cap funds are generally more volatile than large cap or diversified funds, so ensure your risk tolerance aligns with the potential for higher price swings.

• Portfolio Diversification: Small cap funds should complement your overall portfolio. Diversifying across asset classes and sectors can mitigate the risks inherent in small cap investments.

How To Invest In Top Performing Small Cap Funds in 1 Year?

To invest in top-performing Small Cap Funds in 1 year, start by researching and comparing funds based on performance, expense ratio, and the expertise of the fund manager. You can invest through online platforms like Alice Blue, choosing either a lump sum or a systematic investment plan (SIP).

Advantages Of Investing In Top Performing Small Cap Funds in 1 Year?

The main advantages of investing in top-performing Small Cap Funds in 1 year include high growth potential, diversification, professional management, and market trend capitalization. These funds offer significant opportunities for returns while diversifying your overall portfolio.

• High Growth Potential: Small cap companies have greater room for growth compared to large caps, providing investors with the opportunity for significant returns if the companies perform well.

• Diversification: Investing in small cap funds allows diversification within your portfolio, spreading your investments across emerging industries and companies with high growth potential.

• Professional Management: Experienced fund managers can help navigate the risks associated with small cap stocks, leveraging their expertise to select promising companies and manage market fluctuations.

• Market Trend Capitalization: Small cap funds can take advantage of market trends more rapidly, allowing investors to benefit from emerging industries or sectors that larger companies may not be able to tap into as quickly.

Risks Of Investing In Top Performing Small Cap Funds in 1 Year?

The main risks of investing in top-performing Small Cap Funds in 1 year include volatility, liquidity risk, company-specific risk, and market timing. These factors can impact the fund’s performance and lead to potential losses if not properly managed.

• Volatility: Small cap stocks are more prone to market fluctuations, and their prices can swing more significantly than large cap stocks, increasing the risk of short-term losses.

• Liquidity Risk: Small cap companies often have lower trading volumes, making it difficult to sell shares quickly in times of market stress without impacting the price.

• Company-Specific Risk: Smaller companies may face unique challenges such as limited resources, higher debt, and operational inefficiencies, which can affect their performance and the fund’s value.

• Market Timing: Investing in small cap funds at the wrong time in the market cycle can result in significant losses, as these funds are highly sensitive to market conditions.

Importance of Small Cap Funds

Small Cap Funds play a crucial role in a well-rounded investment portfolio by offering exposure to companies with high growth potential. These funds provide investors with the opportunity to capitalize on emerging businesses and industries that may eventually grow into market leaders.

Small cap funds are essential for investors looking to diversify their portfolios. By investing in smaller companies, you gain exposure to sectors and industries that larger funds may not cover, providing diversification beyond traditional large-cap equity investments.

How Long to Stay Invested in Small Cap Funds?

Small cap funds are typically long-term investments, with an ideal holding period of 5 to 7 years. This longer horizon allows investors to ride out market volatility and benefit from the growth of small companies over time.

However, the exact duration depends on individual financial goals and market conditions. Regular portfolio reviews are essential to ensure the fund aligns with your overall investment strategy and to adjust based on changing market dynamics.

Tax Implications of Investing in Small Cap Funds

Small Cap Funds are taxed as equity mutual funds in India. For holdings up to 1 year, short-term capital gains are taxed at 15%. For holdings over 1 year, long-term capital gains above ₹1 lakh are taxed at 10%.

It’s important to keep track of your holding period to optimize your tax liability. Long-term investments in small cap funds can offer tax-efficient returns, especially when compared to other forms of equity or debt investments.

Future of Small Cap Funds

The future of small cap funds looks promising, driven by the potential growth of smaller companies and increasing investor interest. As emerging sectors continue to expand, small cap funds are expected to play a key role in capturing these opportunities.

However, the performance of small cap funds will be influenced by market volatility, economic conditions, and the specific growth prospects of small companies. Innovations in fund management strategies and deeper market penetration will shape the landscape of small cap funds in the years to come.

Top Performing Small Cap Funds in 1 Year FAQs  

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.