Small cap category lost 3.19% in the January-March quarter

The small cap mutual fund category that invests in companies ranked below 251 in terms of market capitalisation offered an average return of (3.19%) in the January-March quarter in 2023. The small cap schemes are benchmarked against Nifty Smallcap 100 - TRI, Nifty Smallcap 250 - TRI, and S&P BSE 250 Small Cap - TRI. Nifty Smallcap 100 - TRI, Nifty Smallcap 250 - TRI, and S&P BSE 250 Small Cap - TRI lost 7.42%, 7.18%, and 5.99% respectively.

There were 24 schemes in the small cap category. Only Franklin India Smaller Companies Fund and HSBC Small Cap Fund offered positive returns in the January-March quarter in 2023. All the other schemes in the category were in the negative territory. Franklin India Smaller Companies Fund and HSBC Small Cap Fund managed to offer marginal returns of around 0.57% and 0.16% respectively. Top losers in the category lost around 6%. PGIM India Small Cap Fund lost the most around 6.19% in the quarter that ended in March 2023. UTI Small Cap Fund lost around 5.35% in the quarter that ended in March 2023.

Around eight small cap schemes lost around 4% and five schemes lost 2%. HDFC Small Cap Fund lost the lowest of around 0.17% respectively in the quarter that ended in March 2023.



ETMutualFunds also compared the performance of small cap schemes for the quarter that ended in March 2023 with the performance of their respective benchmarks. Out of 24 schemes in the category, all the schemes managed to beat their benchmarks.

As per recent AMFI data, the small cap category in the quarter that ended in March 2023 received a total inflow of Rs 6,932.19 crore. The category received the highest inflow in March of Rs 2,430.04 crore. The net asset under management for the small cap category as on March 31, 2023 was Rs 1.33 lakh crore.

Small cap schemes are recommended for aggressive investors. Investors should consider investing in small cap schemes only if they have a high risk appetite and long investment horizon.

If you are looking for recommendations, see: Best small cap schemes to invest in 2023