Around 10 small cap schemes have offered over 40% in 2023. Mahindra Manulife Small Cap Fund, the topper in the category, offered 51.53%. Franklin India Smaller Companies Fund and Bandhan Small Cap Fund gave 47.73% and 47.08% respectively. ITI Small Cap Fund gave 46.86%. Nippon India Small Cap Fund, the largest scheme in the small cap category based on assets managed, offered 44.45%. HSBC Small Cap Fund gave 44.29%. Sundaram Small Cap Fund gave 41.21%. Three schemes gave around 40%.
ETMutualFunds also compared the performance of 10 toppers with their respective benchmarks. Six schemes have managed to beat their respective benchmarks.
The small cap schemes are benchmarked against Nifty Smallcap 100 – TRI, Nifty Smallcap 250 – TRI, and S&P BSE 250 Small Cap – TRI. Nifty Smallcap 100 – TRI, Nifty Smallcap 250 – TRI, and S&P BSE 250 Small Cap – TRI gave 50.26%, 43.84%, and 41.99% respectively.
According to Amfi data, the small cap category in 2023 has witnessed an inflow of Rs 37,177.98 crore, the highest among all equity categories. The category witnessed continuous inflows during the year.
The asset under management of small cap category as on November 30, 2023 stands at Rs 2.20 lakh crore. The asset under management of the small cap category has surged by 68.21% in 2023, from Rs 1.30 lakh crore in January to Rs 2.20 lakh crore in November.
Note, the above exercise is not a recommendation. The attempt was to capture the performance of the category in 2023. One should not make investment or redemption decisions based on the above exercise.
If you are looking for recommendations, see:
Best small cap mutual funds to invest in 2023
Small cap schemes are recommended only to aggressive investors with a very high risk appetite and very long investment horizon. If you don’t have the stomach for huge risk, you should stick to schemes that are relatively safe.
