Best SIP Return: A plethora of small-cap funds have given stellar returns in the near to mid-term, but there are fewer funds in this space that have performed equally well in the long term. In this write-up, we will look at the journey of one such fund – Quant Small Cap Fund, over the last 28 years.
Quant Small Cap Fund is a great example of how small savings can create big wealth. The fund was launched on 24th November 1996. It has given investors 13% returns (CAGR) since inception on lump sum investments and 15.25% annualised returns on money invested through the SIP (Systematic Investment Plan) route. With this rate of return, if someone had invested ₹100 daily or Rs 3,000 monthly through SIP since its launch, their investment would now be worth Rs 1.33 crore. This 28-year return data from Value Research shows the power of consistent small savings over time.
Likewise, if someone had invested a lump sum amount of Rs 1 lakh in this fund 28 years ago, the investment would be worth now Rs 28.32 lakh, earning around 13% CAGR returns.
Quant Small-Cap Fund details:
The latest AUM (Assets Under Management) of the Quant Small-Cap Fund is Rs 26,670 crore, and the expense ratio for the regular plan is 1.59%. The benchmark for this fund is the NIFTY Smallcap 250 TRI. Fund managers Ankit Pandey, Vasav Sehgal, and Sanjeev Sharma manage the scheme. It has received a 5-star rating from Value Research and a 3-star rating from CRISIL.
The fund is categorised as “Very High Risk” on the Riskometer, indicating that it is suitable for investors with a high-risk appetite and a long-term investment horizon.
Also read: Top 5 ELSS Funds: Up to 21% CAGR returns over 10 years! Rs 10K SIP grows up to a whopping Rs 42 lakh
Investment Strategy of Quant Small-Cap Fund:
The objective of this scheme is to generate high long-term returns by building a portfolio of shares from strong small-cap companies.
Currently, the Quant Small-Cap Fund allocates 67.34% of investors’ money to small-cap companies, 0.70% to mid-cap companies, and 25.37% to large-cap companies.
The scheme invests 93.41% of the total funds in equity and equity-related options, while 6.59% is allocated to money market instruments.
Quant Small Cap Fund: SIP Performance
Annualized SIP Return in 28 Years: 15.25%
Monthly SIP Amount: Rs 3,000
Total investment in 28 years: Rs 10,08,001
Value of SIP in 28 years: Rs 1,33,17,148
3-year SIP return: 27.27%
5-year SIP return: 37.31%
7-year SIP return: 25.92%
Quant Small Cap Fund: Lump sum performance (CAGR returns)
1-year return: 9.07%
3-year return: 19.81%
5-year return: 41.76%
Return since launch: 12.93%
Quant Small Cap Fund’s top 5 holdings:
Quant Small Cap Fund’s portfolio includes a diverse range of companies, with its top five holdings showcasing a mix of industry leaders and emerging players. The largest allocation is to Reliance Industries, comprising 8.99% of the portfolio, followed by Jio Financial Services at 5.89%. The fund also holds 4.05% in Aegis Logistics, 3.38% in Aditya Birla Fashion and Retail, and 3.29% in Bikaji Foods International. This strategic allocation reflects the fund’s focus on blending stability with growth opportunities across sectors.
Quant Smallcap Fund: Sector-wise investments
Financial Services: 17.5%
Oil & Gas: 14.5%
Healthcare: 14.3%
Consumer: 8.0%
Chemical: 5.6%
FMCG: 5.5%
PSU: 4.8%
Capital Goods: 4.2%
Construction: 4.0%
Telecom: 3.1%
Who should invest in small cap stocks?
Aggressive investors seeking high returns and willing to take on significant risks can consider investing in small-cap funds. These funds are suitable for individuals who have a higher risk tolerance and the ability to handle market volatility.