Synopsis: This article compares two of the most popular small-cap funds, the Bandhan Small Cap Fund and the Invesco India Smallcap Fund, based on their 3-year performance. It highlights which fund generates higher returns while it assists investors in selecting suitable investment options according to their risk tolerance.
Small-cap investing has emerged as a powerful method for building wealth during the last few years, although funds show different performance results. The same category shows different results because its components use different strategies and execute their plans. The Bandhan Small Cap Fund pursues aggressive growth, whereas the Invesco India Smallcap Fund uses a more cautious investment method. This comparison analyzes how these two strategies have performed over the past three years.
Bandhan Small Cap Fund
- NAV: ₹52.16
- AUM: ₹20,129.67 Cr
- Expense Ratio: 0.77%
- Exit Load: 1% (within 1 year)
- Performance Snapshot
- 3-Year CAGR: 32.2%
- 3-Year Absolute Return: 131.8%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 32.2%
- Equity Small Cap Category Average: 19.7%
- Outperformance: +12.5 percentage points
Invesco India Smallcap Fund
- NAV: ₹46.86
- AUM: ₹9,207.58 Cr
- Expense Ratio: 1.28%
- Exit Load: 1% (within 1 year)
- Performance Snapshot
- 3-Year CAGR: 25.8%
- 3-Year Absolute Return: 102.1%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 25.8%
- Equity Small Cap Category Average: 19.7%
- Outperformance: +6.1 percentage points
Bandhan vs Invesco Small Cap Funds (3-Year Focus)
Example: Wealth Creation Comparison
(SIP: ₹5,000/month for 3 Years)
Note: This is an illustrative example to show how CAGR differences translate into wealth creation. Actual returns may vary depending on market conditions and investment timing.
Also read: Nippon India Mutual Fund that Delivered 250% in a Year — Can You Still Invest Now?
Which One is Suitable for You?
- Choose Bandhan Small Cap Fund if you are seeking higher returns and can handle high volatility. The investment best suits aggressive investors whose primary goal is to build wealth.
- Choose Invesco India Small-cap fund if you prefer a balanced investment solution that offers moderate risk despite its expected lower returns.
Key Takeaways
- Bandhan Small Cap Fund is the clear leader in 3-year returns and wealth creation.
- Invesco India Small-cap funds deliver strong but comparatively lower performance.
- The expense ratio is significantly higher in Invesco, which can impact long-term returns.
- Both funds outperform the category average, but Bandhan’s margin is much higher.
- Even a 6–7% CAGR difference can create a substantial gap in returns over time.
Conclusion
The Bandhan Small Cap Fund has clearly outperformed the Invesco India Small Cap Fund over the last three years in terms of returns and category outperformance. The investment product serves aggressive investors who can handle high-risk investments. In contrast to other small-cap funds, Invesco provides investors with a more balanced investment solution. Your investment choice should align with your risk tolerance and financial goals
Written By Ameet S
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or an investment recommendation. Historical performance determines the returns mentioned, which may not be sustainable in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
