According to data by Association of Mutual Funds in India (AMFI), though the inflows to the category declined by approximately 24%, it continued to attract investors. The small cap category accounted for 55% of the total inflow into the equity category in July.
The asset under management for the small cap category surged by 8% in July to Rs 1.82 lakh crore, from Rs 1.68 lakh crore in June.
In the small cap category, around 24 schemes were there in the market in July. The category offered an average return of around 5.49% in July. The schemes in the category are benchmarked against S&P BSE 250 Small Cap – TRI, Nifty Smallcap 250 – TRI, and Nifty Smallcap 100 – TRI.
S&P BSE 250 Small Cap – TRI, Nifty Smallcap 250 – TRI, and Nifty Smallcap 100 – TRI gave 7.61%, 7.82%, and 8.07% in July. Among 24 schemes in the category, Quant Small Cap Fund offered the highest return of around 8.29%, followed by DSP Small Cap Fund which offered 7.70%. LIC MF Small Cap Fund offered the lowest return of around 2.89%.
In July, out of 24 small cap schemes, only two schemes managed to outperform their respective benchmarks. In other words, 22 schemes failed to beat their benchmarks. That shows 92% of underperformance by the small cap category.
Note, the above exercise is not a recommendation. The main purpose of this exercise is to find how much inflow did the category received in July and how the schemes performed during this month.
One should not make investment or redemption decisions based on the above exercise. One should always include risk appetite, investment horizon and goal before making any investment decision. Past performance does not guarantee future performance.
If you are looking for recommendations, see:
Best small cap mutual funds to invest in 2023
