Best Small Cap Mutual Funds to invest in 2022: Quant Small Cap Fund, Kotak Small Cap Fund

Small cap mutual funds are suitable for aggressive investors who are willing to take risks. They can be considered for a long-term investment horizon. Know about these best small cap mutual funds to invest in 2022.

Top 10 Small Cap Mutual Funds that have delivered over 25

With the recent upsurge of stock market volatility, active investors are opting out of investing in small caps. However, there has been a 2.6% increase in the small-cap since 2021. This clearly indicates the ability of small cap to give better returns if the investor is willing to take risks and bear the market volatility situation.

As per SEBI, it is mandatory for small cap schemes to invest in companies which lie below 250 in ranking in terms of market capitalisation. Because the small cap schemes invest in small companies (they go through ups and downs more often) or their stocks, it is a risk to invest in the schemes. If today you buy a small cap company stocks and it grows out well, people will start to purchase the stocks of that company. This means you will suddenly have multi baggers in your stock portfolio. But if the company fails, the stocks will crash and you will have to bear the loss. 

Also Read: 6 reasons why you should invest in mutual funds

Features of small-cap mutual funds

A small-cap mutual fund invests at least 65% in a company's stocks having a market capitalization less than Rs 5,000 crore.

  • Small-cap mutual funds are highly buoyant when there is market volatility
  • They tend to offer high returns
  • Suited for aggressive investors who are willing to take risks
  • A good option for a long-term investment horizon
  • Investing in small-cap equity mutual funds will not give any tax benefit
  • Risky as contrasted with mid-cap and large-cap funds

Best Performing small cap mutual funds in 2022

Following is the compiled list of best performing small cap funds of 2022 based on the returns. You can buy these with a lump sum amount of Rs 5000 or monthly/weekly SIP. 

Read: Tips to build you mutual fund portfolio from scratch 

1. Quant Small Cap Fund

  • Category: Open-ended mutual fun with high risk
  • Management: Quant Money Managers Ltd
  • Assets Unde Management (AUM): Rs 1,753.58 cr.
  • Net Asset Value (NAV): Rs 127.44
  • 3-year CAGR: 39.76%
  • Minimum SIP to start investing: Rs 1000

2. BOI AXA Small Cap Fund

  • Category: High-Risk Funds
  • Management: BOI AXA Investment Managers Private Limited
  • Assets Under Management (AUM): Rs 296.55 cr.
  • Net Asset Value (NAV): Rs 25.13
  • 3-year CAGR: 32.88%
  • Minimum SIP to start investing: Rs 1000

3. Canara Robeco Small Cap Fund

  • Management: Canara Robeco Asset Management Company Ltd.
  • Assets Under Management (AUM): Rs 2,514.25 cr.
  • Net Asset Value (NAV): Rs 23.97
  • 3-year CAGR: 32.78%
  • Minimum SIP to start investing: Rs 1000

4. Kotak Small Cap Fund

  • Management: Kotak Mahindra Asset Management Company Ltd.
  • Assets Under Management (AUM): Rs 7,384.60 cr.
  • Net Asset Value (NAV): Rs 170.63
  • 3-year CAGR: 29.93%
  • Minimum SIP to start investing: Rs 1000

5. Edelweiss Small Cap Fund

  • Management: Edelweiss Asset Management Limited 
  • Assets Under Management (AUM): Rs 1,169.32 cr.
  • Net Asset Value (NAV): Rs 23.65
  • 3-year CAGR: 27.59%
  • Minimum SIP to start investing: Rs 500

6. Axis Small-Cap Fund

  • Management: Axis Asset Management Company Ltd.
  • Assets Under Management (AUM): Rs 8,984.18 cr.
  • Net Asset Value (NAV): Rs 63.55
  • 3-year CAGR: 26.86%
  • Minimum SIP to start investing: Rs 500

7. Union Small Cap Fund

  • Management: Union Asset Management Company Pvt. Ltd.
  • Assets Under Management (AUM): Rs 607.11 cr.
  • Net Asset Value (NAV): Rs 28.70
  • 3-year CAGR: 26.49%
  • Minimum SIP to start investing: Rs 1000 (monthly) or Rs 500 (weekly)

8. Nippon India Small Cap Fund

  • Management: Reliance Nippon Life Asset Management
  • Assets Under Management (AUM): Rs 18,675.43 cr.
  • Net Asset Value (NAV): Rs 86.83
  • 3-year CAGR: 26.40%
  • Minimum SIP to start investing: Rs 100

9. Tata Small Cap Fund

  • Management: Tata Asset Management Private Ltd.
  • Assets Under Management (AUM): Rs 2,092.05 cr.
  • Net Asset Value (NAV): Rs 21.51
  • 3-year CAGR: 26.36%
  • Minimum SIP to start investing: Rs 150

10. SBI Small Cap Fund

  • Management: SBI Funds Management Ltd.
  • Assets Under Management (AUM): Rs 8,984.18 cr.
  • Net Asset Value (NAV): Rs 110.70
  • 3-year CAGR: 25.43%
  • Minimum SIP to start investing: Rs 1250

Disclaimer: This blog is just for education purposes and should not be considered a piece of expert advice. All finance schemes are subject to market risk, hence investments should be made at your own risk. 

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