Synopsis: This article highlights performance of six mid and small cap funds that have shown consistent performance is last 5 years.
Mid and small cap mutual funds will invest in the emerging companies that are not among the top 100 companies by market capitalisation and commonly in the process of growth. Such business usually shows high growth potential in terms of revenue and profits and hence appealing to investors who desire higher returns as compared to large-cap funds. Mid-cap funds provide a compromise between growth and stability whereas small-cap funds have bigger volatility and may give better returns in the long term.
Top 3 Small Cap Mutual Funds
1. Quant Small Cap Fund
One of the high-performing and most aggressive funds in the small-cap. It pursues an aggressive investment strategy, which is aimed at discovering high growth start-ups.
- 5Y: 26–27% CAGR
- AUM: ₹27,384.03 Crore
- Expense Ratio: Approx. 0.80%
- Risk: Small-cap volatility (Very High)
- Min SIP: ₹1,000
- NAV: ₹261.07
- Lump Sum: ₹5,000
- Exit Load: 1%
2. Bandhan Small Cap Fund – Direct Plan (Growth)
Bandhan Small Cap Fund – Direct Plan (Growth) focuses on long-term capital appreciation by investing in fundamentally strong small-cap companies. It has built a reputation for delivering consistent growth while maintaining relatively competitive costs. The fund attracts investors looking for high growth with manageable expense levels.
- 5Y: 25–26% CAGR
- AUM: ₹19,266.54 Cr
- Expense Ratio: 0.47% (Relatively low for small-cap category)
- Risk: Very High
- Min SIP: ₹100
- NAV: ₹45.48
- Lump Sum: ₹1,000
- Exit Load: 1%
3) Nippon India Small Cap Fund- Direct Plan
Nippon India Small Cap Fund -Direct plan is a fund that has achieved success due to its rigorous stock selection and growth orientation in the long term. It mainly makes investments in small-cap in high potential companies in sectors.
- 5Y: 24–25% CAGR
- AUM: ₹65,812 Cr
- Expense Ratio: 0.65–0.70%
- Risk: Very High
- Min SIP: ₹500
- NAV: ₹183.33
- Lump Sum: ₹5,000
- Exit Load: 1%
Also read: Top 5 ELSS Funds That Outperformed Their Category in the Last 5 Years to Keep an Eye On
Top 3 Mid-Cap Mutual Funds
1) Motilal Oswal Midcap Fund -Direct Plan
Motilal Oswal Midcap Fund is an investment in mid-sized companies, which are fundamentally good and are expected to grow in the long run. The fund enjoys a research-based discipline investment policy and has performed steadily over the market cycles. It is appropriate to those investors who want to have a stable growth with moderate to high- risk exposure.
- 5Y: 22–23% CAGR
- AUM: ₹34,432.18 Cr
- Expense Ratio: 0.80–0.85%
- Risk: High (Mid-cap, less than small-cap)
- Min SIP: ₹500
- NAV: ₹91.65
- Lump Sum: ₹5,000
- Exit Load: 1%.
2) Nippon India Growth Mid Cap Fund
Nippon India Growth Mid Cap Fund is an established fund investing in mid-sized growing companies. It has a solid and stable long-term growth and a big pool of investors supported by research-based stock selection. It is best suited to those investors who seek aggressive mid-cap exposure.
- 5Y: 23.8-25% CAGR
- AUM: ₹41,727.36
- Expense Ratio: 0.72–0.74%
- Risk: Very High
- Min SIP: ₹500
- NAV: ₹4307.79
- Lump Sum: ₹1,000
- Exit Load: 1%
3) HDFC Mid Cap Fund
HDFC Mid Cap Fund is an investment of quality mid-sized Indian companies whose growth is sustainable. It has a reputation of a disciplined and structured investment strategy and has always reaped good long-term returns. It provides a tradeoff between growth prospects and comparatively low volatility in the mid-cap segment.
- 5Y:22–23% CAGR
- AUM: ₹92,186.87 Cr
- Expense Ratio: 0.75–0.80%
- Risk: High
- Min SIP: ₹500
- NAV: ₹202.73
- Lump Sum: ₹1,000
- Exit Load: 1%
Conclusion
The mid-cap and small-cap mutual funds will be effective wealth-generating tools among the long-term investors who can risk the market fluctuations. An individual can easily get into the growth of an emerging company by investing in funds that have steady performance and matching them with the risk appetite.
Written by Boyapati Sai Jasmitha
