Small cap mutual funds lose 2.96% in a day. Should you worry?
valuations.
The small cap mutual fund category has given an average return of 24.95% in this year so far. The category offered around 26.53% returns in six months. Mutual fund managers and advisors have been cautioning investors about imminent corrections in the small cap segment after the indices soared very high over a short period of time.
There were around 24 schemes in the small cap category. Quant Small Cap Fund lost the most of around 3.95% in the one-day horizon. DSP Small Cap Fund, and Mahindra Manulife Small Cap Fund lost around 3.57%. ITI Small Cap Fund and Bandhan Emerging Businesses Fund lost 3.40%.
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UTI Small Cap Fund and ICICI Prudential Smallcap Fund lost around 2.68%. SBI Small Cap Fund lost the least of around 2.15%.
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 4.10%, 3.88%, and 3.80% respectively in the one-day horizon.
Except for Quant Small Cap Fund, all small cap schemes lost lower than their benchmarks. Quant Small Cap Fund lost 3.95%, compared to 3.88% by Nifty Smallcap 250 — TRI, its benchmark.
Out of 24 schemes in the small cap category, nine schemes lost around 3% and 15 schemes lost around 2%.
LIC MF Small Cap Fund, the smallest scheme in the category based on assets managed, lost 2.64%. The scheme manages assets amounting to Rs 170.59 crore. However, Nippon India Small Cap Fund, the largest scheme in the category based on assets managed, lost 3.51%. The scheme manages assets of Rs 36,539.54 crore.
Note, the above
