2 Small-Cap Funds That Have Given More Than 40% Returns In Three Years

Small-cap equity funds invest in India's smallest businesses. Small-Cap funds benefit from early investments in startups that have the potential to become top corporations in the future. Also, owing to a lack of financial ability to survive difficult market conditions, there is a considerable chance of losing money. Here, we have analyzed two Small Cap Funds that have given more than 40% in three years.

Quant Small Cap Fund- Direct Plan (G)

NAV	Fund Size	Expense Ratio
₹145.92	₹ 1374.95 Cr	0.50%

NAV as on 02 February 2022

This fund was established on January 1, 2013. AUM of the Fund - Direct Plan (G) is 1,375 crores as of December 31, 2021. The fund's cost ratio is lower than the expense ratios charged by most other Small Cap funds. The fund invests 98.12% of its assets in Indian stocks, with 9.39 percent in big-cap stocks, 10.23% in mid-cap stocks, and 69.29% in small-cap stocks. The previous one-year growth returns on the are 93.44%. It has had an average yearly return of 17.37% since its inception.

The ability of the fund to provide consistent returns is comparable to that of other funds in its category. It has a strong capacity to limit losses in a down market. Investors who want to put their money in for at least 3-4 years expect a big return. At the same time, these investors should be prepared for the risk of bigger investment losses. The fund invests in a well-diversified portfolio of small-cap firms to create financial appreciation. The fund is rated 5 stars by the CRISIL. I's performance is very good among its peer fund. However, the risk is very high. You must invest exclusively through the SIP approach, as with other equity funds.

Fund's Holdings

The Construction, FMCG, Healthcare, Financial, and Chemicals sectors account for the majority of the fund's holdings. In comparison to other funds in the category, it has less exposure to the construction and FMCG industries. ITC Ltd., Indiabulls Real Estate Ltd., Arvind Ltd., Himachal Futuristic Communications Ltd., and IRB Infrastructure Developers Ltd. are the fund's top five holdings.

Returns Overs The Years

Lump-Sum Investment Returns - On Investment of Rs 10,000

Period Invested for	Absolute Returns	Annualised Returns	Category Avg
1 Year	93.44%	93.44%	62.96%
2 Year	222.95%	79.28%	42.03%
3 Year	191.22%	42.71%	30.00%
Since Inception	327.78%	17.37%	24.16%

SIP returns - On Investment of Rs 1,000

Period Invested for	Absolute Returns	Annualised Returns
1 Year	31.57%	62.65%
2 Year	120.06%	97.83%
3 Year	156.80%	71.75%

BOI AXA Small Cap Fund-Direct Plan (G)

NAV	Fudn Size	Expense Ratio
₹28.91	₹ 212.88 Cr	1.21%

NAV as on 02 February 2022

This fund was established on November 28, 2018. AUM of the Fund - Direct Plan (G) is ₹213 Crores as of December 31, 2021. The fund's expense ratio is higher than the expense ratios charged by most other Small Cap funds. The fund invests 95.65% of its assets in Indian stocks, out of which 72.67% in small-cap equities and the rest 1.65% in large-cap stocks and 0.69 % in mid-cap stocks. The fund has a 1-year growth rate of 68.18%. It has generated an average yearly return of 40.73% since its inception. Every two years, the fund has quadrupled the money invested in it.

You may expect profits that easily outperform inflation as well as returns from fixed-income choices if you invest for seven years or longer. The fund's ability to provide consistent returns is better than other funds in its category. It has a strong capacity to limit losses in a down market. The scheme aims to achieve long-term capital appreciation by investing primarily in small-cap company stock and equity-related assets. CRISIL has given the fund a five-star rating. In comparison to its peers, I's performance is excellent. However, the danger is great. You must invest exclusively through the SIP approach, as with its peer equity funds.

Fund's Holding

Chemicals, Technology, Financial, FMCG, and Construction make up the majority of the fund's holdings. In comparison to other funds in the category, it has less exposure to the Chemicals and Technology sectors. KPR Mills Ltd., KPIT Technologies Ltd., Central Depository Services (India) Ltd., Radico Khaitan Ltd., and Persistent Systems Ltd. are the fund's top five holdings.

Returns Over The Years

Lump-Sum Investment Returns- On investment of Rs 10,000

Period Invested for	Absolute Returns	Annualised Returns	Category Avg
1 Year	68.18%	68.18%	62.96%
2 Year	144.17%	55.97%	42.03%
3 Year	190.55%	42.60%	30.00%
Since Inception	189.10%	40.44%	24.16%

SIP Returns- On investment of Rs 1,000

Period Invested for	Absolute Returns	Annualised Returns
1 Year	25.48%	49.91%
2 Year	81.76%	69.58%
3 Year	114.74%	56.34%

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from MoneyControl and Value Research. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.