HomeFinance"Maximize Your Investments with the Top 6 Small-Cap Mutual Funds"

“Maximize Your Investments with the Top 6 Small-Cap Mutual Funds”

Top six small-cap mutual funds for best return on your money

Introduction

Investing in mutual funds has become one of the most popular modes of investment for individuals. Among them, small-cap mutual funds have come into the limelight as they are known for offering higher returns as compared to their large-cap counterparts. However, investing in small-cap mutual funds also comes with a higher degree of risk. In this article, we will discuss the top six small-cap mutual funds that can offer the best return on your money.

What are Small-Cap Mutual Funds?

Small-cap mutual funds are those mutual funds that invest their corpus in companies with a smaller market capitalization. In other words, small-cap mutual funds invest in companies that have a relatively smaller market share as compared to their large-cap counterparts. Investing in small-cap mutual funds means investing in companies that have the potential to grow faster and hence offer higher returns. But it is important to note that investing in small-cap mutual funds also comes with a higher degree of risk as these companies may not have a proven track record of stability in the long run.

Top Six Small-Cap Mutual Funds for Best Return on Your Money

1. Franklin India Smaller Companies Fund

The Franklin India Smaller Companies Fund is known for investing in small and mid-cap companies that have the potential for earnings growth. The fund has an asset under management (AUM) of over ₹ 8,000 crores and has given a return of over 18% in the last year.

2. HDFC Small Cap Fund

The HDFC Small Cap Fund is another popular small-cap mutual fund that has an AUM of over ₹ 9,000 crores. The fund has a diversified portfolio that invests in companies across various sectors. The HDFC Small Cap Fund has given a return of over 22% in the last one year.

3. SBI Small Cap Fund

The SBI Small Cap Fund is a popular mutual fund that primarily invests in small-cap companies with sustainable business models. The fund has an AUM of over ₹ 6,000 crores and has given a return of over 25% in the last one year.

4. DSP Small Cap Fund

The DSP Small Cap Fund is a top-performing mutual fund that invests in small-cap companies with higher earnings growth visibility. The fund has an AUM of over ₹ 4,000 crores and has given a return of over 20% in the last one year.

5. Kotak Small Cap Fund

The Kotak Small Cap Fund is known for investing in companies that have strong fundamentals and are leaders in their respective sectors. The fund has an AUM of over ₹ 3,000 crores and has given a return of over 17% in the last one year.

6. Nippon India Small Cap Fund

Formerly known as Reliance Small Cap Fund, the Nippon India Small Cap Fund is known for investing in companies that have a potential for high earnings growth. The fund has an AUM of over ₹ 8,000 crores and has given a return of over 23% in the last one year.

Conclusion

Investing in small-cap mutual funds can offer higher returns as compared to large-cap mutual funds, but it comes with a higher degree of risk. It is important to do proper research and analysis before investing in small-cap mutual funds. The funds mentioned above are only some of the top-performing small-cap mutual funds. It is always advisable to consult a financial advisor before making any investment decision.

Sara Marcus
Sara Marcushttps://unlistednews.com
Meet Sara Marcus, our newest addition to the Unlisted News team! Sara is a talented author and cultural critic, whose work has appeared in a variety of publications. Sara's writing style is characterized by its incisiveness and thought-provoking nature, and her insightful commentary on music, politics, and social justice is sure to captivate our readers. We are thrilled to have her join our team and look forward to sharing her work with our readers.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments