The Bank of India Small Cap Fund mutual fund scheme has given absolute returns of 151.86% returns over 3-years. It has generated 35.53% annualised returns, which is higher than the category average returns of 27% over same period.
Small fund size yet big returns
Despite the small fund size of Rs 411.81 crore, Bank of India Small Cap Fund has delivered 184.30% absolute returns since inception. If a person had started a SIP of Rs 10,000 per month for 3 years, the value of the investment would be Rs 5.46 lakhs today. For the total SIP investment amount for Rs 3.6 lakhs, the growth is of 51.78 per cent. However, please note that past performance is not indicative of future good returns.
The portfolio includes 94.6%of equity holdings and remaining is cash. Its top 4 sector holdings are Construction(16.1%), Financials(15.3%), Capital Goods(13.2%), and Chemicals(13.2%). Bank of India Small Cap Fund holds 65 companies in its portfolio which include top banks like ICICI Bank, Federal Bank, Canara bank and City Union Bank Ltd that have performed really well. It also holds two stocks that are part of Apollo group which have robustly performed over few years.
Rankings and Risks
Bank of India Small Cap has been ranked number 2 by Crisil and Morningstar has given a 5-star rating. The portfolio has heavy investments into equities of 94.6%, with bare minimum investments in cash and no investments in debt. Also note a large portion is given to construction sector that is extremely volatile. So, please note the investment risk is extremely high. We are merely sharing the facts about the funds and not providing any recommendations.
Some of the top-performing small cap mutual funds:
Nippon India Small Cap: It was launched on September 2010. The fund scheme has given a return of 20.07 percent against the benchmark return of 10.69 percent. This means, if one had invested ₹10,000 at the time of scheme’s launch, it would have swelled to ₹90,593.
Its top constituent stocks include Tube Investments, KPIT Technologies, Poonawalla Fincorp, Fine Organic Industries, Tejas Networks, CreditAccess Grameen.
Edelweiss Small Cap Fund: The scheme was launched in February 2019. Its annualised return since inception was 28.56%. This means if you had invested ₹10,000 at the time of scheme’s launch, it would have swelled to ₹25,653.
Its top constituent stocks include JB Chemicals & Pharma, Westlife Development, Kei Industries, GMM Pfaudler, City Union Bank, Brigade Enterprises, Kajaria Ceramics, Federal Bank.
Kotak Small Cap Fund: The mutual fund was launched on February 2005. The scheme has given an annualised return of 20.32 percent. This means if someone had invested a sum of ₹10,000 at the time of launch, it would have swelled to ₹61,783.
The key constituents of the scheme include consumer durables (21.38%), capital goods (15.13%), chemicals (11.75%), services (5.33%) and automobile and auto components (5.02%).
Tata Small Cap Fund: The scheme was launched in November 2018. It has given an annualised return of 23.62. This means if someone had invested ₹10,000 at the time of launch, it would have swelled to ₹23,353.
The key constituent stocks include Basf India, Allcargo Logistics, Redington, Tube Investments of India, Kirloskar Pneumatic Company, Dcb Bank, Greenply Industries and others.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.
Disclaimer
Mutual fund investments are subject to market risk. The above-mentioned information is purely informational and doesn’t guarantee any return. Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
