Several Small Cap Funds have multiplied investors’ wealth multiple times in the last 10 years. As per data on the website of the Association of Mutual Funds in India (AMFI), as many as five small-cap funds have given around 25% or more annualised returns in 10 years under their respective direct plans till September 15. The regular plans of these schemes have also given over 23% annualised returns in 10 years.
The SIP calculator shows that a consistent monthly investment of Rs 5,000 in any of these five small-cap funds for 10 years would have resulted in a corpus of more than Rs 25 lakh. Following is a list of the five schemes and the corpus an investor could have accumulated by doing a monthly SIP of Rs 5000 in them for 10 years.
Before reading further, please note this exercise is for informational purposes only. This article is not intended to recommend any of the below-mentioned funds for investments.
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Investors should always consult a financial advisor before investing in any mutual fund scheme. It is also important to note that investing in any scheme based on its past performance may lead to losses as returns from mutual funds are neither assured nor guaranteed.
DSP Small Cap Fund: The annualised return from this scheme has been 26.96% under the direct plan and 26.03% under the regular plan in 10 years. The scheme tracks the S&P BSE 250 SmallCap Total Return Index, which has given 19.12% returns in 10 years.
The SIP calculator shows that a monthly investment of Rs 5000 in the direct plan of this scheme would have grown to approx. Rs 30.5 lakh in 10 years. Monthly SIP of Rs 5000 in the regular plan would have grown to approx. Rs 28.6 lakh in 10 years.
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Franklin India Smaller Companies Fund: The annualised return from this scheme has been 24.55% under the direct plan and 23.25% under the regular plan in 10 years. The scheme tracks the NIFTY Smallcap 250 Total Return Index, which has given 20.99% returns in 10 years.
The SIP calculator shows that a monthly investment of Rs 5000 in the direct plan of this scheme would have grown to approx. Rs 25.8 lakh in 10 years. Monthly SIP of Rs 5000 in the regular plan would have grown to approx. Rs 23.7 lakh in 10 years.
Kotak Small Cap Fund: The annualised return from this scheme has been 25.59% under the direct plan and 23.93% under the regular plan in 10 years. The scheme tracks the NIFTY Smallcap 250 Total Return Index, which has given 20.99% returns in 10 years.
The SIP calculator shows that a monthly investment of Rs 5000 in the direct plan of this scheme would have grown to approx. Rs 27.7 lakh in 10 years. Monthly SIP of Rs 5000 in the regular plan would have grown to approx. Rs 24.8 lakh in 10 years.
Nippon India Small Cap Fund: The annualised return from this scheme has been 31.20% under the direct plan and 29.95% under the regular plan in 10 years. The scheme tracks the NIFTY Smallcap 250 Total Return Index, which has given 20.99% returns in 10 years.
The SIP calculator shows that a monthly investment of Rs 5000 in the direct plan of this scheme would have grown to approx. Rs 41 lakh in 10 years. Monthly SIP of Rs 5000 in the regular plan would have grown to approx. Rs 37.5 lakh in 10 years.
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SBI Small Cap Fund: The annualised return from this scheme has been 28.72% under the direct plan and 27.26% under the regular plan in 10 years. The scheme tracks the S&P BSE 250 SmallCap Total Return Index, which has given 19.12% returns in 10 years.
The SIP calculator shows that a monthly investment of Rs 5000 in the direct plan of this scheme would have grown to approx. Rs 34.4 lakh in 10 years. Monthly SIP of Rs 5000 in the regular plan would have grown to approx. Rs 31.1 lakh in 10 years.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.
