Four small cap mutual funds have delivered more than 30% returns in the past three months. This performance is far ahead of the small cap category average of 22.41%. JM Small Cap Fund led with 36.37%. Trust MF Small Cap Fund followed with 32.10%. Bank of India Small Cap Fund gave 31.49%. Motilal Oswal Small Cap Fund returned 30.33%.
The small cap category itself outperformed the Nifty Smallcap 250 TRI index which rose 20.73% in the same period. Among these four, only Bank of India Small Cap Fund has a long record of more than seven years. It has shown consistent performance with a three year compound annual growth rate of 23.88% and a five year CAGR of 20.72%.
The other three funds are less than three years old. This makes long term comparisons difficult. In one year returns, Trust MF Small Cap Fund led with 26.31%. Bank of India Small Cap Fund delivered 18.28%. Motilal Oswal Small Cap Fund gave 16.58%. JM Small Cap Fund returned 13.43%.
Experts say short term rallies may not last. Investors should focus on funds with proven records across market cycles. Bank of India Small Cap Fund stands out with tested consistency. The newer funds show promise but need time to prove reliability.
