Small, Mid, and Large Cap Funds: A Decade of Investment Returns

Investment trends over the past decade reveal significant differences in returns across various mutual fund categories. According to data from Value Research, small-cap funds have emerged as the top performers, achieving an impressive average annual return of 17.35%. In comparison, mid-cap funds yielded an average return of 16.27%, while large-cap funds offered a more conservative return of 12.79% over the same period.

The last ten years have marked a period of maturation for the mutual fund industry, with the Sensex index moving from approximately 25,000 in August 2015 to significantly higher levels today. This growth has led to substantial rewards for investors who maintained their investments throughout this duration.

Returns by Fund Category

Small-cap funds have generated the highest returns, providing investors with a compelling incentive to consider this category. An investment of Rs 10,000 every month in a small-cap fund over ten years would yield approximately Rs 32,26,811. In contrast, mid-cap funds would produce a value of Rs 30,15,083 under the same investment strategy, while large-cap funds would result in a total of roughly Rs 24,35,830.

The performance of individual funds within these categories further highlights the potential for significant returns. The following are some of the best-performing small-cap funds:

– Nippon India Small Cap Fund: 22.67%
– Axis Small Cap Fund: 20.43%
– Quant Small Cap Fund: 20.34%
– SBI Small Cap Fund: 20.33%
– HDFC Small Cap Fund: 20.17%

For instance, if an investor had consistently invested Rs 10,000 monthly in the Nippon India Small Cap Fund, their investment would have grown to around Rs 45,56,543 over the ten years.

Mid-Cap and Large-Cap Performance

Mid-cap funds have also demonstrated strong performance, with the following notable funds leading the category:

– Invesco India Mid Cap Fund: 20.33%
– Kotak Midcap Fund: 19.82%
– Edelweiss Mid Cap Fund: 19.60%
– Motilal Oswal Midcap Fund: 19.29%
– Nippon India Growth Mid Cap Fund: 18.98%

Investing Rs 10,000 monthly in the Invesco India Mid Cap Fund would have yielded a total of Rs 39,06,504 at the end of ten years.

Large-cap funds, despite their lower average returns, still provide stability and less volatility, appealing to risk-averse investors. The top-performing large-cap funds include:

– Quant Focused Fund: 16.03%
– Nippon India Large Cap Fund: 15.68%
– ICICI Prudential Large Cap Fund: 15.60%
– Canara Robeco Large Cap Fund: 15.52%
– Invesco India Largecap Fund: 14.90%

An investment of Rs 10,000 monthly in the Quant Focused Fund would have resulted in a final value of approximately Rs 29,70,263 over the decade.

Overall, the data illustrates a clear trend: those who have remained invested in small-cap funds have reaped the highest returns, while large-cap funds provide a safer investment option. As investors assess their strategies moving forward, the implications of these findings will be crucial in guiding their investment decisions.

This article aims to provide valuable insights but does not constitute investment advice. Readers should conduct their own research or consult financial experts before making investment decisions.