Top 5 holdings of highly rated small-cap mutual funds

Performance of highly rated small-cap funds rated by various Rating Agencies

Small-cap funds are open-ended mutual fund schemes that primarily invests in small-cap companies. Small-cap companies are the 251st company onwards in terms of full market capitalization. As per SEBI, a minimum of 65 per cent of its total assets should be invested in small-cap equity and equity-related instruments.

As of August 2021, there are 25 small-cap schemes, AUM of these schemes is growing steadily from 61,157 crore as of January 2021 to 93,677 crores as of August 2021. This scheme is very risky as compared to large-cap and mid-cap funds as they invest in companies who have potential grow and sometimes predictions regarding these companies may go wrong. So, these funds are only suitable investors who have a high risk appetite. 

Click Here to access the small-cap funds rating given by rating agencies such as CRISIL, Morningstar and Value Research.  

Let’s take a look at the top 5 holdings of top-rated small-cap funds: 

An investor should study the mutual fund portfolio so that he can invest wisely in the mutual fund holding companies, which he's willing to.