26 Out of 27 Small-Cap Mutual Funds experienced negative returns on SIP investment In the last year
There were around 27 schemes in the small-cap mutual funds out of 26 funds that brought negative returns on SIP performance in the last year. Only one fund has managed to deliver a positive return on the SIP investment. Let’s take a glance at these returns.
SIP Performance of small-cap Cap Mutual Funds
| Small Cap Mutual Fund Name | Current Value of Rs 1,000 monthly SIP made a year ago (Rs) | XIRR (%) |
| Quant Small Cap Fund | 10,631.08 | −22.45 |
| Mahindra Manulife Small Cap Fund | 10,670.00 | −21.84 |
| Aditya Birla SL Small Cap Fund | 10,729.54 | −20.9 |
| Baroda BNP Paribas Small Cap Fund | 10,831.29 | −19.29 |
| HSBC Small Cap Fund | 10,847.73 | −19.03 |
| Franklin India Smaller Cos Fund | 10,896.49 | −18.25 |
| Nippon India Small Cap Fund | 10,916.70 | −17.93 |
| Union Small Cap Fund | 10,930.20 | −17.71 |
| Canara Rob Small Cap Fund | 10,970.92 | −17.06 |
| SBI Small Cap Fund | 11,013.08 | −16.38 |
| Bank of India Small Cap Fund | 11,034.15 | −16.04 |
| Sundaram Small Cap Fund | 11,061.49 | −15.6 |
| ICICI Pru Smallcap Fund | 11,069.21 | −15.48 |
| ITI Small Cap Fund | 11,085.35 | −15.22 |
| Tata Small Cap Fund | 11,097.03 | −15.03 |
| HDFC Small Cap Fund | 11,098.92 | −15 |
| LIC MF Small Cap Fund | 11,130.65 | −14.48 |
| Kotak Small Cap Fund | 11,166.37 | −13.9 |
| PGIM India Small Cap Fund | 11,186.11 | −13.58 |
| DSP Small Cap Fund | 11,237.76 | −12.74 |
| Edelweiss Small Cap Fund | 11,298.91 | −11.74 |
| Axis Small Cap Fund | 11,496.31 | −8.49 |
| Quantum Small Cap Fund | 11,498.83 | −8.45 |
| Invesco India Smallcap Fund | 11,530.30 | −7.92 |
| UTI Small Cap Fund | 11,627.30 | −6.3 |
| Bandhan Small Cap Fund | 11,633.90 | −6.19 |
| Motilal Oswal Small Cap Fund | 12,061.35 | 1.05 |
Three small-cap funds generated a negative return exceeding 20% on SIP investment last year. The Quant Small Cap Fund made a negative return on SIP investment of around 22.45% in the mentioned period. A monthly SIP of Rs 1,000 would have been Rs 10,631 in this fund. On the other hand, Mahindra Manulife Small Cap Fund gave a negative XIRR of 21.84% in the said period. A monthly investment of Rs. 1000 would have been Rs. 10,670 now.
Aditya Birla SL Small Cap Fund delivered a negative return of 20.90% on SIP investment in the mentioned period. Franklin India Smaller Companies Fund went down by 18.25% and Nippon India Small Cap Fund, which is the largest cap fund based on asset management, offered a negative XIRR of around 17.93% in the mentioned period.
Canara Robeco Small Cap Fund delivered a negative XIRR of around 17.06% on SIP made a year ago. On the other hand, SBI Small Cap Fund, a well-known small cap fund, has shown a negative return of 16.38%
Tata Small Cap Fund and HDFC Small Cap Fund both offered a negative XIRR of around 15.03% and 15%, respectively, on the SIP investment made in the mentioned year.
Kotak Small Cap Fund went down by 13.90% on the SIP investments in the last year, followed by DSP Small Cap Fund, which lost around 12.74% in the same year.
Around five funds experienced single-digit losses on SIP investments, including the Axis Small Cap Fund and Quantum Small Cap Fund, which lost around 8.49% and 8.45%, respectively, on the SIP investments in the same period. While Invesco India Smallcap Fund and UTI Small Cap Fund brought a negative return of 7.92% and 6.30%, respectively. Bandhan Small Cap Fund lost the lowest rate of around 6.19% a year ago.
The only fund that gave a positive return in the last year is the Motilal Oswal Small Cap Fund at an XIRR of 1.05% on the SIP investment in the same period.
It is suggested to have a long-term investment window while investing in small-cap funds so that you give enough time to your investment to grow and generate returns. SIPs are not suitable for short-term investors, and instead of halting or withdrawing the investment out of panic, disciplined asset allocation should be maintained. One should remain calm and focused to cope with volatility to achieve their financial goals.
Small-cap and mid-cap funds are suitable for investors with high risk tolerance and long-term investment horizons, so do not expect quick returns. Focus on investing in large-cap and diversified funds for stability. However, during a 15-20 year time frame, you can still invest in small-cap funds but stay calm during market fluctuations.
Experts say that if you are an SIP investor and you believe in the bright long-term prospects of the Indian economy and stock market, you should keep investing money in your SIP without worrying about the short-term market fluctuations. Your fund manager will take care of ups and downs, helping you meet your long-term financial goals.
It should be noted that the above analysis was done to conduct a review on the performance of small-cap funds. Hence, it is not a recommendation. Investors should seek advice from experts and financial advisors before investing in a particular fund.
