Small Cap Mutual Fund That Doubled SIP Money In 3-Years, Rated No 1

The Quant Small Cap Fund has been among the top performers in its category, outperforming other small cap funds by a distance. The fund has also been well rated. Let's take a look.

Performance of Quant Small Cap Fund

If you had invested Rs 10,000 each month for the last 3-years in the Quant Small Cap Fund, the value today would have been Rs 7.17 lakhs. In short, your amount paid by way of SIP would be Rs 3.6 lakhs, while your portfolio value would be Rs 7.17 lakhs, thereby nearly doubling money. Thus investors would have generated good wealth over the last 3-years. Having said that it is important to remember that in the context of the capital markets the past returns are no indication that the performance in the future too would remain robust.

Returns and portfolio of the fund

The 3-year trailing returns of Quant Small Cap Fund is 52.46%, as against the category average of nearly 28%. The portfolio of the fund has been solid with stocks like ITC, RBL Bank, Punjab National Bank and Jindal Stainless. Some of these stocks like ITC and RBL Bank have seen spectacular rally in their stock prices over the last few quarters, which could have propelled the net asset values and hence the gains in the portfolio.

Should you invest in the Quant Small Cap Fund?

The fund has been a remarkable out performer in the last few years. The problem with recommending mutual funds is that sometimes, churn takes place and others which have not performed could well be on top. Having said that we refrain from making any investment calls, given the nature of the mutual fund industry and the volatility in stocks. Some of the top stocks in the portfolio of Quant Small Cap Fund, apart from ITC can give volatile returns. Apart from that the fund has very little exposure to debt. Aalso the markets are reasonably priced in the present context and interest rates are only moving higher.

Ratings

Quant Small Cap Fund has been rated No 1 by Crisil and also has a 5-star rating from Value Research. The one thing to note is that the fund is almost fully invested at 98.42%, there is barely any cash and cash equivalents. This means should the markets fall from here, there is limited scope for investing.

Disclaimer

Mutual fund investments are subject to market risk. The above-mentioned information is purely informational and doesn't guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.