Top small-cap funds that outperformed the index and category!

S&P BSE Small Index is on a steep slide, with lower highs and lower lows. However, there are funds that have outperformed not just the index, but also their category. Continue reading to learn more.

S&P BSE Small-Cap index entered a decreasing phase on January 18, 2022, and just made a death crossing on June 3, 2022. When the 50-Day Exponential Moving Average (EMA) goes below the 200-Day EMA, it is considered a bearish indication. It was trading at 25,983.08 at the time of writing, up 0.02 per cent (5.08 points). It is currently hanging around the 23.6 per cent Fibonacci retracement line. On the downside, the next feasible level appears to be 25,592.41, while on the upside, 26,967.24 would function as strong resistance.

Having said that, no evidence of recuperation is obvious. As a result, it makes perfect sense to gradually begin amassing units of small-cap funds with the aid of a Systematic Investment Plan (SIP). If you want to invest in a lumpsum, then invest in a liquid fund of the respective small-cap funds and then begin a Systematic Transfer Plan (STP) from those liquid funds over the following year.

This allows you to progressively acquire their units at a lower Net Asset Value (NAV), which will benefit you when the market reverses. When the markets begin to rebound, small-cap funds climb considerably faster than Large-Cap funds. We have identified the top ten small-cap funds that have beaten not just the small-cap index, but also the category median returns in this post.