Top performing small-cap funds to invest in!

A change in trend is seen in small caps. Moreover, small-cap funds are outperforming large caps. Read on to find out about top-performing small-cap funds.

Nifty Small-Cap 100 index made an all-time high of 12,047.45 in January 2022. However, witnessed a sell-off making lower highs and lower lows. Before the current rally, it made a low of 7,904.9.

Presently it is hovering at 9,795.5, a rise of 24% from the lows made in June 2022. Have you missed this rally? Don’t worry. In the month of August 2022, rather than making a lower high, it ended higher.

This shows a change in its trend. Moreover, in the period of the rally, on average small-cap funds delivered returns of 22%. The highest returns produced by a small-cap fund was 25.49%, while the lowest returns produced in this period were around 17.45%.

In the period ranging from June 20, 2022, to date, only 13% of the funds were able to beat Nifty Small-Cap 100 index. Does this mean that small-cap funds are not able to beat the index?

Judging in such a short period is not justifiable. Hence, it makes sense to look at it from a long-term perspective. To understand this, we took the rolling returns of top-performing funds based on 5-year trailing returns and compared them with the index.