These powerful small-cap funds are the top performers; have you invested in them?

Small-cap stocks have experienced a trend shift. Furthermore, small-caps are outperforming large-caps. Continue reading to learn about powerful small-cap funds that are top performers.

In January 2022, Nifty Small-Cap 100 index reached an all-time high of 12,047.45. But there was a sell-off with lower tops and lower bottoms. It hit a low of 7,904.9 before the current surge.

It is currently sitting at 9,795.5, up 24 per cent from its lows in June 2022. Have you missed out on this rally? Stay calm. Instead of making a lower high in August 2022, it finished higher.

This indicates a shift in the trend. Furthermore, during the surge, small-cap funds achieved average gains of 22 per cent. A small-cap fund delivered the largest returns of 25.49 per cent. The lowest returns produced by the small-cap fund were roughly 17.45 per cent.

Only 13 per cent of funds were able to outperform the Nifty Small-Cap 100 index from June 20, 2022, to date. Does this imply that small-cap funds cannot outperform the index?

Judging in such a short time frame is unjustifiable. As a result, it makes sense to consider it in the long run. To explain this, we compared the rolling returns of the best-performing funds to the index. The selection of best performing funds was on 5-year trailing returns.

The above table shows, that small-cap funds outperform the small-cap index. This demonstrates that small-cap funds can outperform the index over time.

The top-performing small-cap funds are as below.