These 4 smallcap MFs gave over 65% returns in 1 year. Check their top holdings

In today's MF Analysis, ETMarkets will review top-performing smallcap funds from the past year. Smallcap mutual funds are those that invest at least 65% of the corpus in smaller companies. As per Sebi's definition, small companies are those ranked above 250 in terms of market capitalisation. These companies are often seen as having significant potential for alpha generation and future growth, though this potential comes with heightened risk. While the ability to generate substantial returns is appealing, it is also accompanied by considerable risk. Notably, the top four smallcap funds have delivered returns exceeding 65% over the past year.

Furthermore, we delve deeper into the sectors in which these funds have allocated their investments and identify their key holdings. Take a look at these funds.

Bandhan Small Cap Fund Direct - Growth

Over the past year, the fund has yielded a return of 73.70%, with its current NAV standing at Rs 38.29 and its latest market value totalling Rs 4289.96. With an expense ratio of 0.35%, the fund predominantly allocates its investments to the financial, services and healthcare sectors, with its top three holdings comprising REC, Arvind and Cholamandalam Financial Holdings.

Mahindra Manulife Small Cap Fund Direct - Growth

Over the past year, the fund has yielded a return of 71.14%, with its current NAV standing at Rs 17.07 and its latest market value totalling Rs 3,502.84. With an expense ratio of 0.18%, the fund predominantly allocates its investments to the financial, capital goods and consumer staple sectors, with its top three holdings comprising REC, Godrej Industries and Cholamandalam Financial Holdings.

Quant Small Cap Fund Direct Plan-Growth

Over the past year, the fund has yielded a return of 69.74%, with its current NAV standing at Rs 257.01 and its latest market value totalling Rs 15,663.84. With an expense ratio of 0.70%, the fund predominantly allocates its investments to the energy and financial sectors, with its top three holdings comprising Reliance Industries, IRB Infrastructure Developers, and Jio Financial Services.

ITI Small Cap Fund Direct - Growth

Over the past year, the fund has yielded a return of 67.50%, with its current NAV standing at Rs 25.46 and its latest market value totalling Rs 2,085.37. With an expense ratio of 0.19%, the fund predominantly allocates its investments to the financial and capital goods sectors, with its top three holdings comprising Jindal Stainless, NCC, and KPIT Technologies.