8 smallcap mutual funds multiplied SIP investments by over 2.25x in 5 years

Five smallcap mutual funds have multiplied investors’ SIP investments by 2.25 times in the last five years and 19 smallcap funds have completed five years in the market.

Quant Small Cap Fund multiplied the SIP investments by 2.83 times in the period under review and offered an XIRR of 43.50%. A monthly SIP of Rs 10,000 in this scheme would have turned into Rs 17 lakh now.

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The largest small cap fund, Nippon India Small Cap Fund, multiplied Rs 10,000 monthly SIPs by 2.53 times to Rs 15.20 lakh now. The scheme gave an XIRR of 38.57% in the last five years.

Tata Small Cap Fund and HSBC Small Cap Fund multiplied the same SIP investments by 2.37 times and 2.36 times, respectively. The schemes gave an XIRR of 35.66% and 35.42%, respectively.

Bank of India Small Cap Fund multiplied the SIP investments by 2.33 times in the said period to Rs 13.97 lakh with an XIRR of 34.90%.

Invesco India Smallcap Fund turned Rs 10,000 SIP into Rs 13.73 lakh by multiplying the investments 2.29 times in the last five years. Franklin India Smaller Cos Fund multiplied SIP investments 2.28 times in the period. A monthly SIP of Rs 10,000 in this scheme would have yielded Rs 13.70 lakh now with an XIRR of 34.08%.

Edelweiss Small Cap Fund multiplied investors’ SIP investments by 2.26 times in the last five years and gave an XIRR of 33.58%. A monthly SIP of Rs 10,000 would have turned into Rs 13.55 lakh now.

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The other smallcap funds multiplied the same SIP investment between 1.95 times and 2.22 times in the same period. These schemes turned Rs 10,000 monthly SIPs into Rs 11.70 lakh and Rs 13.30 lakh, with XIRR ranging between 27.34% and 32.78%.

Note, the above exercise is not a recommendation. The exercise was done to find which smallcap funds multiplied the Rs 10,000 monthly SIP by more than 2.25 times in the last five years. One should not make investment or redemption decisions based on the above exercise. One should always consider risk appetite, investment horizon, and goals before making any investment decisions.

Smallcap schemes invest in very small companies or their stocks. That is why investing in smallcap stocks is considered extremely risky. The smallcap segment can be extremely volatile in the short term, but they have the potential to offer very high returns over a long period.

These schemes are recommended only to aggressive investors with a high-risk appetite and long investment horizon, say, around seven to 10 years. ETMutualFunds do not recommend smallcap schemes to new and inexperienced investors.

( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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