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After years of lag, active smallcap funds reclaimed ground, aided by broader market breadth, selective largecap exposure, and sharper stock-picking discipline
3 min read Last Updated : Sep 15 2025 | 9:35 AM IST
Most active equity schemes outperformed their benchmarks over the past year, offering some relief to investors battered by a volatile equity market.
Smallcap funds, which hold the largest number of investor accounts, led the gains relative to their benchmarks. As of September 8, 23 of 28 schemes posted higher returns than the Nifty Smallcap 250 TRI (Total Return Index), which fell 7 per cent. The outperformance gap is even wider against the BSE 250 SmallCap TRI, which declined 7.7 per cent.
This marks a rebound after more than two years of underperformance during a strong rally in smallcap stocks.
Ashwin