These top rated smallcap mutual funds have gained more than 55% this year since January

By: | Updated: November 24, 2017 3:44 PM

While Sensex and Nifty rallying to all-time highs this year with stellar gains of as much as 25%, we bring to you select smallcap mutual funds which have gone even further, and have beaten the benchmark indices two times over since January this year.

म्यूच्यूअल फंड क्या है, म्यूच्यूअल फंड, top 10 mutual fund in india, mutual fund investment, business news in hindi, finance news in hindi, savings news in hindi, म्यूच्यूअल फंड में इन्वेस्ट करेंThere have been a few smallcap funds which have returned up to 65% in the year. (Image: FE Graphic)

Even as the markets continues to rally making it increasingly difficult to find value buys, there have been a few top rated smallcap mutual funds which have returned more than 55% in the year so far. SBI Small & Midcap Fund, rated 5-star by Value Research as well as Morningstar has returned 65.13% since January. In the same period, BSE Smallcap Index has returned 48%. In the last one month alone, returns amount to more than 11%. The fund has an expense ratio of 1.37%, lower than many actively managed funds.

Notably, some active funds such as Baroda Pioneer Large Cap Fund, IDBI India Top 100 Equity Fund and Baroda Pioneer Mid Cap Fund have expense ratios of more than 3%, while returns of these funds are much lower. “SBI Small & Midcap Fund is an open ended equity scheme and primarily invests in Small and Midcap equity and equity related securities of the companies in the small and midcap segment. The fund is suitable for high-risk appetite investors looking for capital appreciation with a long term investment horizon,” says SBI Mutual Fund’s website.

Apart from SBI Small & Midcap Fund, L&T Emerging Businesses Fund too has given stellar returns of 58% since January. While Morningstar has a five-star rating on the fund, Value Research has a four star rating. The fund’s objective is, “To generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, including equity derivatives, in the Indian markets with key theme focus being emerging companies (small cap stocks). The Scheme could also additionally invest in Foreign Securities,” says the website. The scheme has an expense ratio of 1.65%.

Interestingly,  both the funds have taken considerable exposure to the animal feeds player, Avanti Feeds. While L&T Emerging Businesses has invested 1.72% of the total assets in the FMCG player, SBI Small & Midcap has invested more than 2.44% of its total assets into the stock. Notably, Avanti Feeds shares have multiplied investor wealth by more than 5 times since January! Avanti Feeds shares were trading at Rs 2,613, down by more than 2.5% since previous close.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition