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Mutual FundsPremium

Small-Cap Mutual Funds Outperform but Valuations Flash Caution Signals

Arth Vani DeskPublished: 4 min readFact Verified
Small-Cap Mutual Funds Outperform but Valuations Flash Caution Signals

Source: Arth Vani

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AI Summary

Smallcap schemes delivered chart-topping returns over the past year, yet fund managers are raising cash and advising investors to temper return expectations.

Key Highlights
  • ▸Smallcap funds top return charts
  • ▸Managers raise cash buffers
  • ▸Valuations above historical averages
  • ▸SIP route preferred over lumpsum

Smallcap schemes delivered chart-topping returns over the past year, yet fund managers are raising cash and advising investors to temper return expectations.

The development marks a significant shift in how Indian investors and institutions are positioning themselves for the coming quarters. Analysts tracking the sector note that liquidity, policy direction and global cues will remain the dominant themes. Retail participation has continued to deepen, with SIP inflows and demat account additions sustaining their multi-year uptrend.

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Smart picks
Mirae Asset ELSS Tax Saver Fund
Mirae Asset Mutual Fund · ELSS
14.1%
3Y CAGR
Nippon India Small Cap Fund
Nippon India Mutual Fund · Small Cap
13.8%
3Y CAGR
Parag Parikh Flexi Cap Fund
PPFAS Mutual Fund · Flexi Cap
13.5%
3Y CAGR
Axis ELSS- Tax Saver Fund
Axis Mutual Fund · ELSS
12.8%
3Y CAGR
ICICI Prudential Balanced Advantage Fund
ICICI Prudential Mutual Fund · Hybrid
12.3%
3Y CAGR
HDFC Balanced Advantage Fund
HDFC Mutual Fund · Hybrid
11.9%
3Y CAGR

Mutual fund data is sourced from AMFI and shown for information only — funds are subject to market risks. Read all scheme-related documents carefully. Some listings may be sponsored. Not investment advice.

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