Best Performing Small-Cap Mutual Funds That Outperformed Their Benchmark in the Last 3 Years
Small-cap mutual funds are a type of mutual fund that invests in small companies and are suitable for investors who are ready to take risks for the potential of greater long-term returns. Around 23 small-cap mutual funds that completed three years in the market. In this article, we will look at the top 5 funds that have performed better than their benchmarks.
Downside Capture Ratio
A downside capture ratio is a statistical measure that shows how the fund performs in case the market is down. A down capture ratio of less than 100 is considered good because it shows that the fund performed better than the index. For example, a ratio of 80% means the fund lost 20% less than the benchmark during the down market.
Funds that Outperformed Their Benchmarks
Tata Small Cap Fund
The fund is suitable for those investors who are looking to invest money for at least three to four years and looking for high returns. Tata Small Cap Fund had a downside capture ratio of 51.25% over the past three years.
Franklin India Smaller Companies Fund
Franklin India Smaller Companies Fund is an open-ended mutual fund that mainly invests in small-size companies and is suitable for investors who are looking for long-term wealth creation. Franklin India Smaller Companies Fund had a downside capture ratio of around 52.88% in the mentioned period.
Invesco India Small Cap Fund
The scheme’s main focus is to gain capital growth by primarily investing in stocks of small-cap companies. Invesco India Small Cap Fund had a downside capture ratio of 55.21% during the mentioned period.
Axis Small Cap Fund
The fund’s goal is to generate long-term capital growth with a diversified portfolio of small-cap company equity and equity-related instruments. Axis Small Cap Fund had a downside capture ratio of 55.49% in the mentioned time.
