Best 5 Small Cap Funds That Have Offered Returns Over 20% in Last 3 Year
A small-cap fund is a type of mutual fund that invests in small companies with small market capitalizations. These are the companies that are in their growing stage. While these schemes have the potential to deliver high returns over a long period, there is a higher risk associated with this fund.
Small-cap mutual funds have offered a 26.38% return in 2024 and an inflow of Rs.4,667.70 crore in December 2024. As per SEBI, small-cap funds are required to invest at least 65% in small-cap stocks.
Who should invest in Small-cap Funds?
As these companies are young, they are more sensitive to market fluctuations. That is why small-cap funds can be extremely risky. But on the other hand, these schemes can offer high returns over a long period. Small-cap funds are suitable for investors with a high-risk tolerance and a long investment horizon.
If you are someone who is looking to invest in small-cap mutual funds, then take a glance at these small-cap funds, which have given returns of over 20% in the last three years (as of Feb 19, 2025).
Funds Offered Returns Over 20%
1. Invesco India Smallcap Fund:
Invesco India Smallcap Fund has generated 20.69% returns in 3 years.
2. Bandhan Small Cap Fund
Bandhan Small Cap Fund has offered 23.37% returns over the last 3 years.
3. ITI Small Cap Fund
It has offered returns of 20.23% over the last 3 years.
4. Nippon India Small Cap Fund
In the last 3 years, Nippon India Small Cap Fund has offered 20.85% returns.
5. Quant Small Cap Fund
Quant Small Cap Fund has given 19.75% returns in the last 3 years.
Conclusion
It should be noted that this is the analysis of the best performers in the small-cap fund and not a recommendation. It is best to do your own research and consider other factors, including your financial situation and your risk profile, before investing in small-cap funds.
