Top 5 small-cap mutual funds to tackle market volatility

Top 5 small-cap mutual funds: Even though the Indian stock market has recently experienced a downturn, small-cap mutual funds have provided excellent returns in the long term. SIP and lump sum investments in these funds have yielded good profits.

Mutual funds

The Indian stock market has seen its biggest fall in the last 5 months. Key indices Sensex and Nifty have both fallen by up to 14% from their September highs. Similarly, the small-cap mutual fund has suffered the biggest loss in the short term (1 month, 3 months, 6 months and 1 year). But, if you look at their returns over 5 years, they are performing well.

Small-cap funds

Out of the top 5 mutual funds that have given the best returns in the last 5 years, 3 are small-cap funds. Funds that have been weak for the past few months have very strong performance in the long term. In this compilation, let's look at the returns and other aspects of 5 mutual funds that perform well in various categories.

Quant Small Cap Fund – Direct Plan

Quant Small Cap Fund – Direct Plan

Returns over 5 years (CAGR): 41.72%

At this rate of return, an investment of ₹1 lakh made as a lump sum 5 years ago would have yielded a return of ₹5,71,756 for investors.

Returns on SIP investment (CAGR): 29.96%

The value of a ₹10,000 SIP investment started 5 years ago would have been ₹12,28,307.

Bandhan Small Cap Fund – Direct Plan

Bandhan Small Cap Fund – Direct Plan

Returns over 5 years (CAGR): 33.68%

If ₹1 lakh is invested as a lump sum in this fund, investors would have received ₹4,26,979 after 5 years.

Returns on SIP investment (CAGR): 27.75%

The value of a ₹10,000 SIP investment started 5 years ago would have increased to ₹11,67,048.

Nippon India Small Cap Fund – Direct Plan

Nippon India Small Cap Fund – Direct Plan

Returns over 5 years (CAGR): 31.07%

In this fund, after 5 years, the value of a lump sum investment of ₹1 lakh would be ₹3,86,798.

Returns on SIP investment (CAGR): 26.04%

A ₹10,000 SIP investment started 5 years ago would have turned into ₹11,21,677.

ICICI Prudential Infrastructure Fund – Direct Plan

ICICI Prudential Infrastructure Fund – Direct Plan

Returns over 5 years (CAGR): 30.94%

In this fund, after 5 years, a lump sum investment of ₹1 lakh would have grown to ₹3,84,911.

Returns on SIP investment (CAGR): 30.47%

A ₹10,000 SIP investment started 5 years ago would have turned into ₹12,42,726.

Quant ELSS Tax Saver Fund – Direct Plan

Quant ELSS Tax Saver Fund – Direct Plan

Returns over 5 years (CAGR): 30.26%

In this fund, a lump sum amount of ₹1 lakh invested 5 years ago would now be ₹3,74,982.

Returns on SIP investment (CAGR): 19.91%

If started 5 years ago, a ₹10,000 SIP investment would have grown to ₹9,71,255.