Around five smallcap funds have offered more than 30% return on SIP investments in three years. There were around 27 small cap schemes in the market that have completed three years of existence in the market. Here is the full list of smallcap funds that gave over 30% in three years, according to the data by ACE MF.
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2/8
Quant Small Cap Fund
The topper in the category gave around 38.67% return on SIP investment in the last three years. A monthly SIP of Rs 10,000 would have been Rs 6.13 lakh now.
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3/8
Bandhan Small Cap Fund
This smallcap fund gave a 32.68% return on SIP investments in three years. A monthly SIP of Rs 10,000 would have been Rs 5.68 lakh now.
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4/8
Franklin India Smaller Companies Fund
The fund gave a 32.62% return on SIP investments in a three-year period. A monthly SIP of Rs 10,000 made three years ago would have been Rs 5.68 lakh now.
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5/8
Nippon India Small Cap Fund
The largest scheme in the category based on assets managed gave a 32.52% return on SIP investments. If an investor made a monthly SIP of Rs 10,000 three years ago, the current market value of the investment would have been Rs 5.67 lakh.
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6/8
ITI Small Cap Fund
This smallcap fund gave a 30.77% return on SIP investments in the last three years. A monthly SIP of Rs 10,000 made three years ago would have been Rs 5.54 lakh now.
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7/8
Want to invest?
Smallcap schemes are always considered risky. However, they also have the potential to deliver very high returns over a long period. The trouble is these schemes are also notorious for their very long bear phases. When the market gets into a lean phase smallcap segments lose heavily as investors look for safer investment options. Smallcap companies also have corporate governance issues
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8/8
Who should invest?
Investors with a very high risk appetite and stomach for volatility should invest in smallcap schemes. They also should have a long investment horizon of, say, seven to 10 years.
