Top small-cap performing funds in last three months

Shashikant Singh
/ Categories: Mutual Fund
Top small-cap performing funds in last three months

The current downfall in the equity market, when taken from the beginning of the year (though recently, they have seen a sharp upmove) has only accentuated the fall, through which, the broader market was going through.

The reason for their fall was initially due to high valuations and after that, economic slowdown and more recently, due to COVID-19 related concerns. For example, from January 15, 2018, small-cap indices have seen a sharp pullback and have been in pain for the last two and a half years. The current downturn in the small-cap stocks is already one of the longest and the deepest.

Since January 2018 till March 23, 2020, BSE Small-cap index was down by almost 56 per cent. It was at 20,046.9 on January 15, 2018, and from there, it fell to 8,872.83 on March 23, 2020. Even as on July 29, 2020, the index is down by 35 per cent from its peak.

This is being reflected in the performance of mutual funds schemes dedicated to small-cap. In the last three years, all the small-cap dedicated funds except for two (SBI and Axis) have given negative returns. Nonetheless, the tide is turning now.

Looking at the last three months’ performance, it seems that a bottom for small-cap stocks has formed. Despite, such volatility in the equity market year to date (YTD), the small-cap index has performed in tandem with large-cap, and in the last three months, on average, the small-cap funds have performed marginally better than the large-cap funds.

The following are the best performing small-cap funds in the last three months.

Top Small-Cap Funds (based on last three months’ performance)

Funds

Fund Manager

AUM(in Rs. cr)

 NAV  (Rs)

Ret. (%)1 mo

Ret.(%)3 mo

Ret.(%)6 mo

Ret.(%)3 yrs

Ret.(%)5 yrs

Ret.(%)10 yrs

Principal Small Cap

Ravi Gopalakrishnan

166.9

10.48

7.54

21.26

-4.61

-

-

-

ICICI Pru Small-cap

Sankaran Naren

1111.2

22.37

4.84

20.52

-18.12

-5.43

1.46

8.24

Canara Rob Small Cap

Cheenu Gupta

375.2

9.84

7.45

20.46

-5.06

-

-

-

HSBC Small Cap Equity

Ankur Arora

287.1

40.5

3.92

20.42

-14.25

-8.99

-0.21

5.75

Tata Small Cap Fund

Chandraprakash Padiyar

613.8

9.88

3.84

20.21

-12.15

-

-

-

source: rupeevest

The following are the funds that have performed worst in the last three months.

Bottom Small Cap Funds (based on last three months’ performance)

Funds

Fund Manager

AUM(in Rs. cr)

 NAV  (Rs)

Ret. (%)1 mo

Ret. (%)3 Ret.

Ret. (%)6 mo

Ret. (%)3 yrs

Ret. (%)5 yrs

Ret. (%)10 yrs

Franklin India Smaller C

R. Janakiraman

5050.4

41.25

2.66

14.08

-20.68

-9.18

1.19

11.17

SBI Small Cap Fund-Reg(G)

R. Srinivasan

3917.4

50.97

3.21

13.68

-11.61

3.6

9.49

16.49

Union Small Cap Fund

Vinay Paharia

300.5

13.27

5.3

13.18

-13.52

-4.06

1.07

-

IDBI Small Cap Fund

Uma Venkatraman

101.1

7.95

4.59

11.78

-17.07

-7.45

-

-

Axis Small Cap Fund

Anupam Tiwari

2310.1

29.15

3.65

10.41

-15.28

4.14

-

 

source: rupeevest

Small-cap funds have performed better in the long-run. However, in the short-run, they do tend to exhibit more volatility. Therefore, these funds are recommended only for those investors, who have an appetite for risk and have an investment horizon of 7 to 10 years. Besides, funds with lower assets under management should be avoided in difficult market times, as it may create a liquidity issue.

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