Base effect contributing to small-cap funds' 30% return over three years

Limit exposure to this volatile category to 10-15% of equity portfolio, enter with 7-10-year horizon


'Small-cap funds have the potential to create wealth and generate sizeable alpha over the medium to long term'

Sanjay Kumar Singh New Delhi
Small-cap funds have given a category average return of 30 per cent over the past three years, which makes them among the best performing categories over this horizon. Over the past year, however, this category’s  return has been muted at 3 per cent.

Base effect

A couple of factors have contributed to the category’s strong performance over the three-year period.  

First Published: Nov 16 2022 | 6:00 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to