3 Small-cap Mutual Fund SIPs, Given Returns Upto 114.69% In 3 Years, Rated By Morningstar

Small-cap stocks are mostly chosen by experienced equity investors who have a better risk appetite.

Why should you choose small-cap mutual fund SIP investments

The small-cap stock investment comes with high risk, but they generally fetch more profitability. Small-cap funds mostly invest in companies with low market capitalization, however, these funds can sometimes have large-cap investments, for security quotient. The small-cap are developing company stocks, and they can pose for more growth both in the near-term and long-term. Through mutual fund SIPs, as an investor, you can expect to have good returns.

In this article portfolios of 3 small-cap mutual fund SIPs, rated by rating agency Morningstar, have been discussed.

1. SBI Small Cap Fund - Regular Plan-Growth

SBI Small Cap Fund's NAV stood at Rs. 110.25, and its fund size is Rs. 11250.5 Crore. The Expense ratio is 1.73%, and the category average is 1.25%. This fund has been rated by Morningstar with 5 star. SBI Small Cap Fund's mutual fund's absolute returns of SIP are the most lucrative in the long term. In the last 1 year return stood at 22.49%, in the last 2 years it has fetched 64.95% returns, in the last 3 years it has fetched 82.5% returns, in the last 5 years it has fetched 98.38% returns, and in the last 10 years, it has fetched 314.11% returns. In the past 2 years, the SBI Small Cap Fund's annualized returns of SIP stood at 56.54%.

The top 5 equity holdings of the fund are, Sheela Foam Ltd. (Houseware), Elgi Equipments Ltd. (Compressors/pumps), Blue Star Ltd., Carborundum Universal Ltd. (Abrasives), Hatsun Agro Products Ltd. (Consumer food). SBI Small Cap Fund's Equity Holding is 92.00%, and 8.00% in other sectors. This fund's Mid Cap Investments is 8.58%, Small Cap Investments is 62.57%, and 20.85% investments are allocated in other funds.

2. Kotak Small Cap Fund - Growth

Kotak Small Cap Fund's NAV stood at Rs. 195.70, and its fund size stood at Rs. 6761.51 Crore. This fund has been rated by Morningstar with 4 star. The Expense Ratio is 0.49%, while the category average is 0.71%. Kotak Small Cap Fund's absolute returns of SIP are quite high. In the last 1 year return stood at 29.14%, in the last 2 years it has fetched 90.44% returns, in the last 3 years it has fetched 114.69% returns, and in the last 5 years, it has fetched 129.14% returns. In the past 2 years, the Kotak Small Cap Fund's annualized returns of SIP stood at 76.26%.

The top 5 equity holdings of the fund are, Century Plyboards India Ltd. (Plywood boards), Sheela Foam Ltd. (Houseware), Carborundum Universal Ltd. (Abrasives), Persistent Systems Ltd. (Computers), Supreme Industries Ltd. (Plastic products). Kotak Small Cap Fund's Large Cap Investments are 2.29%, Mid Cap Investments is 11.63%, Small Cap Investments is 69.02%, and 10.87% in other funds. This fund's Equity Holding is 93.81%, and 6.19% is involved in other sectors.

3. DSP Small Cap Fund - Regular Plan-Growth

DSP Small Cap Fund's NAV stood at Rs. 119.23, and its fund size stood at Rs. 8785.95 Crore. This fund has been rated by Morningstar with 3 star. The Expense Ratio is 1.86%, while the category average is 2.22%. DSP Small Cap Fund's absolute returns of SIP are considerably higher in 10 years. In the last 1 year return stood at 29.99%, in the last 2 years it has fetched 77.53% returns, in the last 3 years it has fetched 94.75% returns, in the last 5 years it has fetched 96.58% returns, and in the last 10 years, it has fetched 255.94% returns. In the last 2 years, the DSP Small Cap Fund's annualized returns of SIP stood at 66.39%.

The top 5 equity holdings of the fund are, Suprajit Engineering Ltd. (Auto ancillaries), Chambal Fertilizers & Chemicals Ltd., Nilkamal Ltd. (Plastic products), K.P.R. Mill Ltd. (Fabrics and garments), Atul Ltd. (Chemicals). DSP Small Cap Fund's Mid Cap Investments is 8.57%, 11.98% in other funds, and 78.09% invests are in the Small Cap stocks. DSP Small Cap Fund's Equity Holding is 96.86%, and 3.4% is in other sectors.

Performance Comparison

If you are comparing the long-term returns, then SBI Small Cap Fund is the best. Its 10 years absolute SIP returns are considerably high at 314.11%. But in the short term, in the last 2 years, the Kotak Small Cap Fund's absolute SIP returns stood at 90.44%. However, if your concern is security and liquidity, then the portfolio of the SBI Small Cap Fund can be checked. Its fund size is the highest among all the 3 above-mentioned funds. But all of these funds are rated by reputed rating agency Morningstar and are chosen by a large section of investors.

(Also read: This Flexi-cap SIP Mutual Fund Has Given Upto 100.45% Returns In 5 Years)

 

 

Disclaimer

Investing in equities/mutual funds/SIPs poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.

(Data mentioned as on January 17, 2022)