If you are planning to invest in a mutual fund scheme, it is quite usual to evaluate the past returns of that scheme and compare the same with its rivals in the same category. Although past returns do not guarantee the future returns, they, however, give a sense of the scheme’s potential to grow in near future.
Generally, mid cap and small cap mutual funds carry a higher potential for an upside, they are more volatile than their larger peers.
On the other hand, large cap mutual funds are more stable but their upside – relatively speaking – is limited.
Mid cap funds
For those who are not aware, mid cap mutual funds refer to the schemes which invest at least 65 per cent in mid cap stocks. There are 29 mid cap mutual fund schemes in the entire mutual fund universe in India with net assets under management (AUMs) amounting to ₹3,99,784 crore.
As we can see in the table below, there are seven mid cap funds which have managed to beat the benchmark index based on the past 3 year returns.
Highest return (29.46 per cent) was delivered by Motilal Oswal MidCap Fund which was ahead of the benchmark index return of 21.83 percent per annum.
When seen through the lens of the fund’s size, largest mid cap scheme is HDFC Mid-Cap Opportunities Fund with total AUM of ₹73,087 crore (as on Jan 24, 2025) followed by Nippon India Growth Fund which has an AUM of ₹33,426 crore.
(Source: AMFI; Returns as on Jan 24, 2025)
Small cap funds
Small cap funds refer to the schemes which invest a minimum of 65 percent in small cap stocks. There are 29 small cap mutual fund schemes with net assets under management (AUMs) amounting to ₹3,29,245 crore.
(Source: AMFI; Returns as on Jan 24, 2025)
As we can see in the table above there are eleven small cap schemes which have delivered higher returns than their benchmark index. Highest return was given by Bandhan Small Cap Fund which delivered 25.19 per cent return, which was more than the benchmark return of 19.05 per cent.
As far as the size of the fund is concerned, the largest scheme is Nippon India Small Cap Fund with total AUM of ₹58,272 crore followed by HDFC Small Cap Fund with AUM of ₹31,383 crore.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.