Have You Invested in Small Cap Funds that Fetched a Return of 50% in 3 Years?
Last Updated : Oct. 17, 2016, 11:51 a.m.
Do you know what small cap funds are? Have you got any idea of their returns over the years? Small cap funds form part of market capitalization funds that also have large cap and mid cap under their periphery. Large cap funds invest in stocks of companies with a market capitalization of Rs 200 billion-Rs 3,500 billion, while mid cap counterparts pump in to stocks of companies having a market capitalization of Rs 50 billion-200 billion. Below this level, you will find the investment of small cap funds. Even though small cap funds invest in stocks of smaller companies, but their performance over the years has been stellar to say the least with some providing returns of about 50% in 3 years time, bringing in moolah for their investors who can now dream big. Waiting anxiously to know about such funds? Find all that below and see if your fund has found a place in the top ladder.
Top-performing Small Cap Funds
DSP BlackRock Micro Fund
Bringing a huge smile on the face of investors, DSP BlackRock Micro Fund topped the growth chart with an impressive return of 51.65% in a period of 3 years. Its 5-year return is pegged at 26.52%. Kudos to all those investors who raked in big by investing in this fund, which is an open-ended diversified equity growth scheme that seeks to generate long-term capital appreciation from a carefully designed portfolio of equity and equity securities of companies other than top 300 companies by market capitalization. The fund, with an asset under management (AUM) of Rs 3,649.98 crore, is currently traded at a net asset value (NAV) of Rs 30.29 per unit
Reliance Small Cap Fund
At second, you have Reliance Small Cap Fund that helped investors reap a 3-year and 5-year return of 46.82% and 24.64%, respectively. As an open-ended equity scheme, the fund looks at generating long-term capital appreciation by investing in a basket of equity and equity securities while allowing investors to fetch regular income via pumping in to debt and money market instruments. Currently, the fund is traded at a NAV of Rs 30.29 per unit (As on Sep 22, 2016). The AUM of the fund is pegged at Rs 2,042.29 crore.
Franklin India Smaller Companies Fund
Franklin India Smaller Companies Fund grabs the third spot with a 3-year, 5-year and 10-year return of 43.18%, 27.34% and 17.1%, respectively. With an eye on letting the investor wealth appreciate over the long-term, the fund invests primarily in the securities of small and mid cap companies. As of now, you can buy the fund whose NAV and AUM are Rs 47.749 per unit and Rs 3,734.17 crore.
Canara Robeco Emerging Equities Fund
The fourth place goes to Canara Robeco Emerging Equities Fund that has yielded a 3-year, 5-year and 10-year return of 43.88%, 24.49% and 17.27%, respectively. As an open-ended equity scheme, the product is ideally suited for investors with a goal of long-term capital appreciation. The fund invests in diversified mid cap stocks to let investors increase the size of the pocket.