Top 3 performing small-cap index funds in April 2024

These top 3 performer mutual funds of April 2024 logged more than 70 per cent returns in last year.

Small-Cap stocks often hold immense growth potential, but picking the right winners can be a challenge. Index funds offer a solution, providing diversified exposure to this exciting market segment. In April 2024, several small-cap index funds delivered impressive returns. This article explores the top three performers of April 2024, analysing their performance and exploring what might have driven their success.

Returns data as on: 30-Apr-24

Aditya Birla Sun Life Nifty Smallcap 50 Index Fund – It is a regular direct growth scheme under the Index Funds/ETFs category, managed by Aditya Birla Sun Life Mutual Fund. As of April 30, 2024, the fund's NAV stands at Rs 18.80. This fund has a total fund size of Rs 131.53 crore. It has an expense ratio of 1.05 per cent, which is significantly higher than the category average of 0.46 per cent.

The fund invests 100 per cent of its assets in domestic equities, with 30.27 per cent in Mid-Cap stocks and 53.76 per cent in small-cap stocks. It has underperformed the NIFTY Smallcap 50 TRI, with a return of 73.49 per cent compared to the index’s 79.14 per cent, but it is well above the category average of 28.93 per cent.

Axis Nifty Smallcap 50 Index Fund – This fund primarily invests in domestic equities. As of April 30, 2024, it has a Net Asset Value (NAV) of Rs 16.47, reflecting a 0.21 per cent increase. The fund has managed to accumulate a fund size of Rs 240.82 crore. The fund has an expense ratio of 1 per cent, which is higher than the category average of 0.46 per cent. Its investment distribution includes 30.5 per cent in mid-cap stocks and 54.24 per cent in small-cap stocks.

When compared to the NIFTY Smallcap 50 TRI, the fund has returned 74.08 per cent, which is less than the NIFTY Smallcap 50 TRI's return of 79.14 per cent but significantly higher than the category average of 28.93 per cent.

Kotak Nifty Smallcap 50 Index Fund – It is an index fund managed by Kotak Mahindra Mutual Fund, targeting small-cap equities. As of April 30, 2024, the fund has a net asset value (NAV) of Rs 18.20. It holds a fund size of Rs 49.55 crore and maintains an expense ratio of 1.04 per cent, compared to the category average of 0.46 per cent. The investment distribution includes 100 per cent in domestic equities, split between 30.02 per cent in mid-cap stocks and 53.37 per cent in small-cap stocks.

In terms of performance, the fund's return is 73.24 per cent, as against the NIFTY Smallcap 50 TRI's 79.14 per cent and the category average of 28.93 per cent. Notably, the fund has not been ranked by Crisil.

Investors can think of Investing in Index Mutual Funds for low-risk higher returns.

Disclaimer: The article is for informational purposes only and not investment advice.