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News18
7 hours ago
- Business
- News18
Best-Performing Mutual Funds In 5 Years: Top 10 Small-Cap Funds With Annualised Returns Up To 35%
Nippon India Small Cap Fund and Bandhan Small Cap Fund were the best-performing funds in the category among the top 10 schemes. Mutual fund schemes have become popular among investors in the last few years due to higher returns compared to traditional investment instruments. Mutual funds offer market-linked returns and enormous flexibility to investors from income groups. Among the wide range of schemes, small-cap mutual funds have given significant returns to investors over the last five years, despite the bouts of market volatility. Small-cap funds are the mutual fund schemes that invest at least 65% of their total assets in equity and equity-related securities of small-cap companies, as per the classification by the market regulator, the SEBI (Securities and Exchange Board of India). These schemes are generally preferred by investors looking for exposure to equity assets with high growth potential. The small-cap funds come with the potential to outperform mid- and large-cap funds in an upward market. However, these funds could be volatile and risky as they invest the majority of their assets in small companies. Investors can identify the best mutual fund schemes by evaluating returns over a period and comparing them with returns of other schemes in the same category. Past returns may not be a guarantee of steady growth due to future uncertainties and market fluctuations. However, in mutual fund schemes, past returns help to assess the performance and the future growth potential. Before finalising to invest in a mutual fund scheme, it's advisable to evaluate your financial goals, risk appetite and investment horizon. Here are the top 10 small-cap mutual funds that have delivered an annualised return of 30-35 per cent in the last five years, according to the Association of Mutual Funds in India (AMFI). Small Cap Fund 5-Year Annualised Return (In %) Nippon India Small Cap Fund 34.71 Bandhan Small Cap Fund 32.98 HSBC Small Cap Fund 32.14 HDFC Small Cap Fund 31.90 Invesco India Small Cap Fund 31.87 Franklin India Small Cap Fund 31.61 Tata Small Cap Fund 31.59 BOI Small Cap Fund 30.69 Edelweiss Small Cap Fund 30.54 ICICI P Small Cap Fund 30.28 As the table indicates, the Nippon India Small Cap Fund has become the best-performing fund in the category with an annualised return of 34.71 percent. Bandhan Small Cap Fund (32.98) and HSBC Small Cap Fund (32.14) have become the second and third best-performing small-cap funds, respectively, over the last five years. BOI Small Cap Fund (30.69), Edelweiss Small Cap Fund (30.54), Franklin India Small Cap Fund (31.61), HDFC Small Cap Fund (31.9), ICICI P Small Cap Fund (30.28), Invesco India Small Cap Fund (31.87) and Tata Small Cap Fund (31.59) are some of the other small-cap schemes that have delivered annualised returns above 30 per cent over the last five-year period. However, as suggested by market experts, investors must remain cautious before investing in a small-cap fund based on its historical returns. It will be a prudent step to evaluate the future growth potential of a small-cap scheme with respect to current economic and market conditions. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! view comments Location : Delhi, India, India First Published: August 11, 2025, 18:59 IST News business Best-Performing Mutual Funds In 5 Years: Top 10 Small-Cap Funds With Annualised Returns Up To 35% Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
04-08-2025
- Business
- Time of India
Top 10 mutual funds to invest in August 2025
Live Events List of top 10 schemes: Canara Robeco Bluechip Equity Fund Mirae Asset Large Cap Fund Parag Parikh Flexi Cap Fund HDFC Flexi Cap Fund Axis Midcap Fund Kotak Emerging Equity Fund Axis Small Cap Fund SBI Small Cap Fund SBI Equity Hybrid Fund Mirae Asset Hybrid Equity Fund Aggressive hybrid funds Large cap funds Flexi cap funds Small cap, mid cap funds Methodology for hybrid funds: Methodology for equity funds: Many new and relatively-inexperienced investors always look for top mutual funds to invest in. They ask their friends or colleagues or in some mutual fund forums for top or best schemes while starting their investment journey or while deciding to invest extra money. But most of them are not satisfied with the answers they get from the internet or friends due to different online search would mostly take you to some websites with ready-made lists. Most often, the schemes may be shortlisted on the basis of their short-term performance. Sometimes, the schemes from a single category may dominate the list because that category happens to be the flavour of the or colleagues may give you names of schemes they like or they are investing. Again, there is no guarantee the schemes are indeed suitable for people never proceed beyond collecting names of top funds because a lingering doubt about the veracity of the names always holds them back. No wonder, many investors keep visiting mutual fund forums for validation for years - even after they start is why ETMutualFunds decided to put out a list of top 10 mutual fund schemes. We have chosen two schemes from five different equity mutual fund categories - aggressive hybrid, large cap, mid cap, small cap and flexi cap schemes – which we believe should be enough for regular mutual fund investors. There are caveats: read till the end to ensure you are picking up the best scheme for are some pointers you should keep in mind while investing in these schemes. First, find out about each category and whether it is suited to your investment objective and risk hybrid schemes (or erstwhile balanced schemes or equity-oriented hybrid schemes) are ideal for newcomers to equity mutual funds. These schemes invest in a mix of equity (65-80%) and debt (20-35). Because of this hybrid portfolio they are considered relatively less volatile than pure equity schemes. Aggressive hybrid schemes are the best investment vehicle for very conservative equity investors looking to create long-term wealth without much equity investors want to play safe even while investing in stocks. Large cap schemes are meant for such individuals. These schemes invest in top 100 stocks and they are relatively safer than other pure equity mutual fund schemes. They are also relatively less volatile than mid cap and small cap schemes. In short, you should invest in large cap schemes if you are looking for modest returns with relative stability.A regular equity investor (one with a moderate risk appetite) looking to invest in the stock market need not look beyond flexi cap mutual funds (or diversified equity schemes). These schemes invest across market capitalisations and sectors, based on the view of the fund manager. A regular investor can benefit from the uptrend in any of the sectors, categories of stocks by investing in these about aggressive investors looking to pocket extra returns by taking extra risk? Well, they can bet on mid cap and small cap schemes. Mid cap schemes invest mostly in medium-sized companies and small cap funds invest in smaller companies in terms of market capitalisation. These schemes can be volatile, but they also have the potential to offer superior returns over a long period. You can invest in these mutual fund categories if you have a long-term investment horizon and an appetite for higher any search starting with the word 'best' or 'top' is unlikely to offer you the best solution. You should always choose a scheme that matches your investment objective, horizon, and risk profile. If you do not understand the basic mutual fund concepts or are totally new to mutual funds and investing, you should always seek the help of a mutual fund you are looking for our recommendations in various mutual fund category, see: Best mutual funds to invest : Rolled daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H <0.5, the series is said to be mean When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X = Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZIt is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate}Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the Hybrid funds, the threshold asset size is Rs 50 crore ETMutualFunds has employed the following parameters for shortlisting the equity mutual fund daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H is less than 0.5, the series is said to be mean When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X =Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZIt is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate}For Equity funds, the threshold asset size is Rs 50 crore.
Economic Times
04-08-2025
- Business
- Economic Times
Top 10 mutual funds to invest in August 2025
Many new and relatively-inexperienced investors always look for top mutual funds to invest in. They ask their friends or colleagues or in some mutual fund forums for top or best schemes while starting their investment journey or while deciding to invest extra money. But most of them are not satisfied with the answers they get from the internet or friends due to different reasons. ADVERTISEMENT An online search would mostly take you to some websites with ready-made lists. Most often, the schemes may be shortlisted on the basis of their short-term performance. Sometimes, the schemes from a single category may dominate the list because that category happens to be the flavour of the season. Also Read | JioBlackRock Mutual Fund's 5 index funds among 9 NFOs that will open for subscription this week Friends or colleagues may give you names of schemes they like or they are investing. Again, there is no guarantee the schemes are indeed suitable for people never proceed beyond collecting names of top funds because a lingering doubt about the veracity of the names always holds them back. No wonder, many investors keep visiting mutual fund forums for validation for years - even after they start investing. That is why ETMutualFunds decided to put out a list of top 10 mutual fund schemes. We have chosen two schemes from five different equity mutual fund categories - aggressive hybrid, large cap, mid cap, small cap and flexi cap schemes – which we believe should be enough for regular mutual fund investors. There are caveats: read till the end to ensure you are picking up the best scheme for you. ADVERTISEMENT Also Read | Quant Mutual Fund receives final nod from Sebi to launch India's first Specialized Investment Fund in August Canara Robeco Bluechip Equity Fund Mirae Asset Large Cap Fund Parag Parikh Flexi Cap Fund HDFC Flexi Cap Fund Axis Midcap Fund Kotak Emerging Equity Fund Axis Small Cap Fund SBI Small Cap Fund SBI Equity Hybrid Fund Mirae Asset Hybrid Equity Fund Here are some pointers you should keep in mind while investing in these schemes. First, find out about each category and whether it is suited to your investment objective and risk profile. ADVERTISEMENT Aggressive hybrid schemes (or erstwhile balanced schemes or equity-oriented hybrid schemes) are ideal for newcomers to equity mutual funds. These schemes invest in a mix of equity (65-80%) and debt (20-35). Because of this hybrid portfolio they are considered relatively less volatile than pure equity schemes. Aggressive hybrid schemes are the best investment vehicle for very conservative equity investors looking to create long-term wealth without much equity investors want to play safe even while investing in stocks. Large cap schemes are meant for such individuals. These schemes invest in top 100 stocks and they are relatively safer than other pure equity mutual fund schemes. They are also relatively less volatile than mid cap and small cap schemes. In short, you should invest in large cap schemes if you are looking for modest returns with relative stability. ADVERTISEMENT A regular equity investor (one with a moderate risk appetite) looking to invest in the stock market need not look beyond flexi cap mutual funds (or diversified equity schemes). These schemes invest across market capitalisations and sectors, based on the view of the fund manager. A regular investor can benefit from the uptrend in any of the sectors, categories of stocks by investing in these about aggressive investors looking to pocket extra returns by taking extra risk? Well, they can bet on mid cap and small cap schemes. Mid cap schemes invest mostly in medium-sized companies and small cap funds invest in smaller companies in terms of market capitalisation. These schemes can be volatile, but they also have the potential to offer superior returns over a long period. You can invest in these mutual fund categories if you have a long-term investment horizon and an appetite for higher risk. ADVERTISEMENT Finally, any search starting with the word 'best' or 'top' is unlikely to offer you the best solution. You should always choose a scheme that matches your investment objective, horizon, and risk profile. If you do not understand the basic mutual fund concepts or are totally new to mutual funds and investing, you should always seek the help of a mutual fund advisor. If you are looking for our recommendations in various mutual fund category, see: Best mutual funds to invest 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H 0.5, the series is said to be mean When H0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X = Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of Z 4. Outperformance i) Equity portion: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} ii) Debt portion: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. 5. Asset size: For Hybrid funds, the threshold asset size is Rs 50 crore ETMutualFunds has employed the following parameters for shortlisting the equity mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H is less than 0.5, the series is said to be mean When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X =Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of Z 4. Outperformance: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} 5. Asset size: For Equity funds, the threshold asset size is Rs 50 crore. (Disclaimer: past performance is no guarantee for future performance.) Page 2
Fashion Value Chain
10-07-2025
- Business
- Fashion Value Chain
Bajaj Finserv Small Cap Fund NFO: How SIPs Can Help Navigate Volatility
Small cap funds are known for their potential to deliver higher returns in the long run. These funds invest in companies with a smaller market capitalization-typically those ranked 251 and beyond on recognised stock exchanges. While these businesses are often in their early or expansion stages and have significant growth potential, they can also be more sensitive to market swings compared to large cap counterparts. That's why managing volatility is key-and one potential way to do that is through a Systematic Investment Plan (SIP). SIPs help bring discipline to your investing journey while potentially cushioning short-term ups and downs. The Bajaj Finserv Small Cap Fund NFO ends on June 11, 2025 If you're seeking to enter the small cap space, you can consider the Bajaj Finserv Small Cap Fund. Launched on June 27, 2025, this new equity fund seeks to manage risk through a structured approach and an emphasis on quality businesses with long-term growth potential and favourable valuations. The fund is currently in its New Fund Offer (NFO) period, which remains open until July 11, 2025. Why consider a small cap fund If you are an investor with a higher risk appetite, a small cap fund can be a suitable investment for you in the long term. These funds tend to perform across different market cycles, and their returns may not follow typical patterns in the short term. So, while this creates opportunity, it also means that these funds are more sensitive to market conditions and investor sentiment. How SIPs help navigate volatility Volatility is an inherent part of small cap investing. One way to mitigate risks in these funds is by spreading out your investment over time through an SIP. An SIP allows you to invest a fixed amount at regular intervals, typically monthly. SIPs are powered by features like the power of compounding and rupee cost averaging. Here, when markets are low, you buy more SIP units; when the market is high, you buy fewer. Over time, this helps average out your purchase price, which may result in better risk mitigation. An SIP also helps you build consistency and discipline-making investing a habit, not a one-time decision. This discipline is especially useful in volatile segments such as small cap funds. Aligning SIPs with long-term goals When you start an SIP in a small cap fund, you get an opportunity to better align your contribution plan with your financial goals. Whether youre saving for retirement, a child's education, or building a long-term corpus, having clarity on your objective can help guide how much you invest and for how long. The longer you stay invested in a small cap fund, the more time it allows you to potentially recover from short-term fluctuations and build long-term wealth. Since small cap funds take time to realise their growth potential, patience is a key part of the process. What to look for when selecting a small cap fund Before starting a SIP in a small cap fund, consider evaluating a few important aspects: Investment approach : How does the fund seek to mitigate risk and deliver the potential for long-term growth Review the strategy in detail. Fund manager expertise : The ability to identify promising small cap companies requires skill. Look into the manager's approach and investment philosophy. Expense ratio : Over the long term, even small differences in cost can affect your returns. Portfolio diversification: Check how diversified the fund is across sectors and companies. A more balanced portfolio may reduce the impact of underperformance in any one stock. SIP investment: A steady way to participate An SIP investment in a small cap fund may allow investors to benefit from the potential upside while managing exposure to risk. By contributing steadily over time, investors may feel less pressure to time the market and more confidence in sticking with their long-term plan. Even modest SIP investments, if continued consistently, can add up over time and potentially contribute meaningfully to financial goals. Conclusion Small cap funds can offer long-term growth potential, but their higher volatility means they may not suit every investor. Starting a SIP investment in a small cap fund-such as the Bajaj Finserv Small Cap Fund (NFO open till July 11, 2025)-may help smooth out the experience, providing a disciplined and gradual approach to building wealth over time. As always, it is advisable to speak with a financial advisor to ensure that your investment choices align with your overall goals and comfort with risk. To invest in the Bajaj Finserv Small Cap Fund NFO or learn more about the fund, visit Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Time of India
03-07-2025
- Business
- Time of India
NFO Update: Bajaj Finserv Mutual Fund launches small cap fund
Bajaj Finserv Mutual Fund has launched Bajaj Finserv Small Cap Fund , an open-ended equity scheme predominantly investing in small cap stocks, that offers quality, growth and value. The fund is open for subscription and will close on July 11. Also Read | Record inflow of over Rs 15,000 crore in May. What is making arbitrage mutual funds gain investors' interest? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Bajaj Finserv Small Cap Fund is designed for investors aiming to build long-term wealth by investing primarily in equity and equity-related instruments of small cap companies, according to a release by the fund house. The recent correction in small caps presents a compelling entry point for long-term investors. Even though over 80% of small-cap companies have posted strong profit growth of 38% and solid return ratios, most of them are still trading 15–45% below their 52-week highs. Live Events This recent market correction has opened up a clear gap between the true value of these companies and their current market prices, said the release. Coupled with structural tailwinds such as the 'Make in India' push, rising formalisation, and digital transformation across sectors, small caps are well-positioned to benefit disproportionately in the next growth cycle, making this an attractive investment opportunity. The equity portion of the fund will be managed by Nimesh Chandan , CIO and Sorbh Gupta, Head - Equity, and the debt portion by Siddharth Chaudhary , Head – Fixed Income. The minimum application amount is Rs 500 (Plus multiples of Re 1), with a minimum additional application of Rs 100 (Plus multiples of Re 1). An exit load of 1% is applicable if the investment is redeemed within six months of the date of the allotment. The fund offers both growth and IDCW (Income Distribution cum Capital Withdrawal) options. 'The launch of the Small Cap Fund reflects our deep conviction in the long-term potential of India's dynamic small-cap universe. Small caps typically exhibit higher volatility than broader indices, underscoring the importance of active management in navigating market fluctuations and identifying quality opportunities,' said Ganesh Mohan , Managing Director, Bajaj Finserv AMC. 'The strategy is built around discovering high-quality companies in the early phases of growth that are positioned to outperform over time. With the recent small cap correction, the NFO is poised to take advantage of this golden opportunity, enabling investors to participate in long term wealth creation as these businesses scale and contribute meaningfully to the economy,' he added. Also Read | JioBlackRock launches mutual fund access on MyJio, calls it a new era of investing Bajaj Finserv Small Cap Fund is well-suited for those looking to benefit from the growth potential of fundamentally strong businesses that are currently trading below their intrinsic value. It also appeals to investors who want to diversify their portfolios by adding small-cap stocks with growth prospects. The fund is benchmarked to the BSE 250 SmallCap Index TRI. 'Our new small cap fund will be a portfolio of quality businesses with scalability that trade below their intrinsic value. Many industries and subsectors are available exclusively in the small cap category. In essence, there are opportunities to pick up leaders in emerging businesses and challengers in others from this small cap space,' said Nimesh Chandan, Chief Investment Officer, Bajaj Finserv AMC. 'The NSE small cap 250 Index is almost flat year on year. However, many companies generated strong profit growth last year. This allows us to invest in those small cap companies at valuations lower than last year after this time correction,' Nimesh Chandan added It goes beyond selecting quality stocks by rigorously filtering out companies with weak governance, inconsistent fundamentals, or financial red flags. This disciplined approach narrows the universe of over 1,100 small-cap stocks to a focused set of high-potential businesses. A key part of the process is our internal forensic and risk-aware analysis, which filters out companies with weak governance or financial red flags. From a universe of around 300-400 small-cap stocks, this disciplined approach narrows the selection to a portfolio of 40– 100 carefully chosen businesses
