Spotlight on Small Cap Funds
We had commenced a discussion on the category of Small-Cap Funds and which Life Cycle Stage of an investor it is usually more suitable for. Let us now proceed to turn the spotlight on some randomly selected funds in this space, namely Axis Small Cap Fund, Franklin India Smaller Companies Fund, HSBC Small Cap Fund, Kotak Small Cap Fund and Nippon India Small Cap Fund.
Axis Small Cap Fund has an AUM of R15,025 crore. The current Asset allocation mix is nearly 3% in Large Cap, 17% in Mid Cap and 70% in Small Cap and others. Its top equity holdings are in the financial services, healthcare and chemicals sectors. The performances of this fund over a 1-year, 3-year and 5-year time period are 21.06%, 31.54% and 22.06%, respectively. Franklin India Smaller Companies Fund has an AUM of R9,104 crore.
The current Asset allocation mix is nearly 3% in Large Cap, 2% in Mid Cap and 87% in Small Cap and others. Its top equity holdings are in the banking, industrial products and construction sectors. The performances of this fund over a 1-year, 3-year and 5-year time period are 34.86%, 36.79% and 15.98%, respectively. HSBC Small Cap Fund has an AUM of R10,766 crore. The current Asset allocation mix is nearly 3% in Large Cap, 25% in Mid Cap and 70% in Small Cap and others. Its top equity holdings are in the industrial products, IT-software and consumer durables sectors. The performances of this fund over a 1-year, 3-year and 5-year time period are 29.26%, 39.33% and 17.22%, respectively.
Kotak Small Cap Fund has an AUM of R11,597 crore. The current Asset allocation mix is nearly 5% in Large Cap, 23% in Mid Cap and 67% in Small Cap and others. Its top equity holdings are in the consumer durables, industrial products and auto components sectors. The performances of this fund over a 1-year, 3-year and 5-year time period are 17.72%, 35.79% and 20.82%, respectively.
Nippon India Small Cap Fund has an AUM of R34,469 crore. The current Asset allocation mix is nearly 12% in Large Cap, 17% in Mid Cap and 66% in Small Cap and others. Its top equity holdings are in the industrial products, banks and auto components sectors. The performances of this fund over a 1-year, 3-year and 5-year time period are 34.10%, 40.89% and 21.86%, respectively.
While the past is no guarantee of future performances, there is some comfort to be derived from the past performances of these funds. But, as I have mentioned before, selection of funds from any category needs to be customised and is best left to a professional who has risk profiled the investor.