Small-cap funds on an average have generated return of 54 per cent in the last one year, which remains one of the highest among equity categories. In the last three years, on an annualised basis, it has generated return of 27 per cent, which means that on an absolute basis it has given return of more than 100 per cent. For example, one of the best performing small-cap funds, Quant Small-Cap Fund has generated return of 224 per cent between March 2021 and May 2024. In the same period, Invesco India Small-Cap Fund and HDFC Small-Cap Fund have generated returns of 142 per cent and 148 per cent, respectively. Even among the not-so-good performing funds in recent times, Union Small-Cap Fund has generated return of 119 per cent in the same period.
Such returns have attracted many investors towards these funds. Since the start of February 2021, investors have poured in a net amount of ₹74,501 crore in small-cap funds. From our study of the last 39 months, it was only in four months when there was a net outflow from small-cap-dedicated funds. Out of these outflows, not a single time was the net outflow more than ₹500 crore. In June 2023, small-cap funds attracted investments of ₹5,471 crore, highest in recent times.
The gain in small-cap index along with huge inflow has led to a significant increase in the assets under management (AUM) of small-cap funds. This has increased from around ₹67,700 crore in February 2021 to ₹266,109 crore currently, spiralling upward at an annualised rate of more than 50 per cent in the period under consideration.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
