Top performing small-cap funds to watch in 2024!
Throughout the year, the Nifty Small Cap 250 index outshone its mid- and large-cap counterparts, boasting an impressive 45.5 per cent YTD returns.
The Indian equity market witnessed a rollercoaster ride in 2023, marked by significant milestones and, surprisingly, a standout performance by Small-Cap funds. As we bid adieu to 2023, the Nifty 50 soared past 21,000 advancing 18 per cent on YTD basis, while the S&P BSE Sensex notched up nearly 17 per cent gain on a Year-to-Date (YTD) basis, crossing the 71,000 mark. Yet, amidst the market dynamics, it was the small-cap category that stole the spotlight.
The Triumph of Small-Caps in 2023
Throughout the year, the Nifty Small Cap 250 index outshone its mid- and Large-Cap counterparts, boasting an impressive 45.5 per cent YTD returns. This stellar performance was not without its challenges, as global events such as the conflicts in Russia and Ukraine, geopolitical tensions in Israel and Hamas, surging crude oil prices, and the hawkish stance of the US Federal Reserve added a layer of uncertainty. Nevertheless, the positive aspects, including robust macroeconomic fundamentals and increased retail investor participation, seemed to overshadow the headwinds.
Drawing from historical trends, it's no surprise that the small-cap market tends to outperform during extended economic expansions and bull market phases. Small-cap mutual funds rode this wave, witnessing a significant upswing and amassing Rs 37,179 crores in calendar year 2023 so far, according to data from the Association of Mutual Funds in India (AMFI).
Unveiling the Top Performers for 2024
As we step into 2024, investors are eager to capitalize on the small-cap momentum. Here, we present a curated list of the top-performing small-cap funds to consider for the upcoming year, based on trailing returns over various periods:
|
Funds
|
Trailing Returns (%)
|
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
Nippon India Small Cap Fund
|
48.77
|
42.17
|
28.00
|
27.59
|
|
Franklin India Smaller Companies Fund
|
52.94
|
37.19
|
22.58
|
22.37
|
|
Sundaram Small Cap Fund
|
45.29
|
33.89
|
21.86
|
21.09
|
|
Quant Small Cap Fund
|
48.47
|
46.05
|
31.69
|
19.01
|
|
HDFC Small Cap Fund
|
46.50
|
37.91
|
21.91
|
21.09
|
|
ICICI Prudential Small Cap Fund
|
37.82
|
34.40
|
25.89
|
18.79
|
|
Kotak Small Cap Fund
|
34.67
|
32.69
|
25.83
|
22.59
|
|
Axis Small Cap Fund
|
33.89
|
31.20
|
25.99
|
23.72
|
|
DSP Small Cap Fund
|
42.32
|
32.51
|
24.33
|
24.51
|
|
Invesco India Small Cap Fund
|
44.81
|
34.63
|
24.64
|
-
|
| |
Conclusion: Seizing Opportunities in 2024
The impressive performance of small-cap funds in 2023 serves as a testament to their resilience and growth potential. As we navigate the uncertainties of the market, the data-backed insights into the top-performing small-cap funds for 2024 provide investors with a roadmap to potentially capitalize on the continuing small-cap momentum. However, it's crucial to approach investments with diligence and consider individual risk tolerance and financial goals.
In the ever-evolving landscape of financial markets, small-cap funds offer a compelling avenue for investors seeking growth and diversification. As we embark on the journey into 2024, these funds present themselves as potential gems, ready to shine in the dynamic world of investments.
Disclaimer: The article is for informational purposes only and not investment advice