Small-Cap Funds - An Attractive Option
Dalal Street Investment Journal|June 05, 2023
There is no doubt that small-cap funds are offering a good margin of safety now. However, before investing in these funds there are certain points you need to take care of. It is crucial to approach small-cap mutual funds with caution, taking into account various quantitative and qualitative parameters to ensure a rewarding investment experience. The report highlights the various aspects of small-cap funds
Small-Cap Funds - An Attractive Option

The Indian stock market, after being in a very narrow range and consolidating for the last few quarters, has witnessed the first signs of breaking away from the range over the last couple of months. Frontline indices such as Nifty and Sensex are up by almost 8 per cent from the start of the financial year. Nevertheless, small-cap stocks, which are often overshadowed by their larger and more prominent counterparts, have seen better a performance in the same period. Since the start of April 2023 we have witnessed the small-cap index outperforming both the mid-cap and large-cap indices. 

Performance of Small-Cap Funds

The impact of the performance of the small-cap stocks is clearly visible in the performance of funds dedicated to this cap. The small-cap-dedicated funds too outperformed the other categories. With a return of 6 per cent, small-cap funds have outperformed other categories, including large-cap, large-cap and mid-cap as well as sectoral banking funds. Small-cap funds have emerged as the top-performing category with a significant one-month return of 6 per cent. This outpaces the returns of other popular categories such as large-cap (4.86 per cent), large and mid-cap (4.82 per cent) and sectoral banking (5.07 per cent).

Denne historien er fra June 05, 2023-utgaven av Dalal Street Investment Journal.

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Denne historien er fra June 05, 2023-utgaven av Dalal Street Investment Journal.

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