Best Small-Cap Mutual Funds with Low Beta Over the Past 3 Years
Small-cap mutual funds are mutual funds that invest at least 65% of their assets in small-size companies. These companies are generally ranked 251st or lower based on their market value. Small-cap funds are more riskier as compared to other types of mutual funds because their value can change in the short term. But they also provide the chance to earn higher returns over the long term.
There are five small-cap funds that had low beta during the past three years. The small-cap schemes gave returns ranging between 14.3% and 30% during this period, according to report.
What is Low BETA?
A lower beta might offer more stability but potentially lower returns. On the other hand, a higher beta may mean higher risk, but it could also result in higher returns, which means there is less chance that investors can lose money by owning a low-beta stock. These stocks generally provide smaller returns than riskier investments.
SBI Small Cap Fund
It is an open-ended equity mutual fund scheme that mainly invests in small-size companies.
The SBI Small Cap Fund had the lowest beta of approx. 0.66 from the past three years. The scheme offered a return of approx. 20.8% during this time.
Kotak Small Cap Fund
Kotak Small Cap Fund is an equity mutual fund scheme from Kotak Mahindra Bank Fund that focuses on generating capital growth by investing in small-size companies.
The Kotak Small Cap Fund had a beta of 64.55 0.72 from the past three years. The scheme offered a return of 19.1% in this period.
Axis Small Cap Fund
It is an open-ended equity mutual fund scheme. The scheme mainly targets credible stocks of companies with small market capitalization.
The Axis Small Cap Fund had a beta of 0.67 over the past three years. The scheme delivered a return of approx. 21.8% during the same time.
ICICI Prudential Small Cap Fund, which is an equity mutual fund, delivered a return of 20.3%, and Tata Small Cap Fund had a beta of 0.69 for the past three years. The schemes delivered a return of 26.2%, respectively, during the same time.
