Apr 01, 2017 3 min read

Find Out the Best Trending Small & Mid Cap Funds

Here you will find the best-performing small- and mid-cap funds for making a sound investment portfolio for a long-term investment tenure.
When investing in mutual funds, you must consider two major factors, viz., your investment objective and your risk appetite. Among the various alternatives of mutual fund assets in India, you must select the one that suits your investment requirements. If you are among the aggressive investors who can bear moderate- to high-risk appetite and want to invest for a longer tenure, then the small & mid-cap funds are the best alternative for you.

They not only provide heavy returns over a long-term but also enhance the capital worth of investors. Here are the best four small- and mid-cap equity funds for your portfolio.

1. Kotak Emerging Equity Scheme

With the primary objective of generating long-term capital appreciation from an equity-oriented portfolio, the scheme has possessed a remarkable position in the market since its inception. Holding “Second” rank in the ‘Small & Mid-Cap’ category, kotak emerging equity fund scheme is an outperformer against its benchmark due to which the experts highly recommend it. The scheme is offering returns at the rate of 35.10% and 25.50% on its three- and five-year investments and is among the must-have ones for a sound portfolio.

2. L&T Emerging Business Fund

This is a newly framed small & mid-cap scheme by L&T Mutual Funds, which aims to provide long-term capital appreciation from a diversified portfolio consisting equity and equity-related securities with the primary focus on the emerging companies. It has investments in the Indian market’s equity derivatives as well to pamper the growth aspects and earn higher returns. The returns offered by the scheme are commendable. In the one-year investment tenure, it has offered 48.90% returns. Being a new player in the industry, the scheme has reached the desired possession in just two years, i.e., until 2016(launched in 2014).

3. Birla Sun Life Small & Mid Cap Fund

It is an open-ended small- and mid-cap equity plan having an objective to generate consistent long-term capital growth by investing predominantly in the equity and equity-related securities of companies which are considered to be small- and mid-sized as per market capitalisation. The scheme may invest a certain portion of its corpus in the fixed income securities as well which include money market instruments, in order to meet the liquidity requirements.

4. Sundaram SMILE Fund

Being a rank-holder in the top-five small- and mid-cap funds by CRISIL for the quarter which ended in December 2016, the scheme has been an outperformer and has offered up to 108.2 percent absolute annual returns in the year 2014. To achieve the primary objective of appreciating capital, it has made investments in the diversified stocks of various companies which are small- and medium-sized.

The experts highly recommend the above-mentioned schemes for the purpose of creating long-term wealth with high-growth potential. The small-cap funds are known for their growth proficiency, and thus they are opted by the investors with a high-risk appetite. The schemes are risky as they are volatile to market fluctuations as the investments are made in growing or emerging entities only. Hence, one needs to make sure that they can bear such volatility before putting their hard-earned money in these plans.

MySIPonline provides the ease of investing in the best-performing small- and mid-cap funds online by providing the simplified investment solutions. If you wish to make a worthwhile investment in mutual funds and need assistance from the experts to select the right fund for your portfolio, then our fund analysts and advisors can help you find the same. So don’t wait for the right moment, start now with a right fund.