Report Wire

News at Another Perspective

Small-cap mutual fund offers CAGR of 28%, 11% alpha return since inception

3 min read

Edelweiss Small Cap Fund is without doubt one of the greatest performing mutual funds in small-cap class. This fairness mutual fund scheme has greater than doubled traders’ cash is final three years. The small-cap fund has given CAGR (compound annual development charge) of greater than 28 per cent since its inception in February 2019 whereas the class return on this interval is to the tune of 17 per cent. This means Edelweiss Small Cap Fund has generated alpha return of 11 per cent in final three years.

Edelweiss Small Cap Fund truth sheet

In final one yr, Edelweiss Small Cap Fund has delivered 6.35 per cent annual return whereas class return on this interval is 5.40 per cent. In final two years, this small-cap mutual fund has given 40.58 per cent annual return whereas absolute return given on this interval is round 98 per cent. So, an traders’ cash received virtually doubled in Edelweiss Small Cap Fund in final two years. Catetgory return in final two years was at 40.76 per cent. Likewise, in final three years, Edelweiss Small Cap Fund has delivered 31.40 per cent annual returns whereas its absolute return on this interval stands at round 127 per cent. Category return on this interval is at 28.55 per cent.

However, since its inception in February 2019, this small-cap fairness mutual fund has yielded annual return of 28.10 per cent whereas its absolute return is at whopping 146 per cent. The class return on this interval is 17.10 per cent.

SIP calculator

As per the Value Research information, this 5-star rated small-cap mutual fund has expense ratio of two.16 per cent in final one yr. If an investor had stareted month-to-month systematic funding plan (SIP) of ₹10,000 one yr in the past, absolutely the worth of 1’s funding might have been ₹1,26,423. If the investor had this ₹10,000 month-to-month SIP on this 5-star rated plan two years in the past, its ₹10,000 month-to-month SIP would have grown to ₹3,06,854. Similarly, if an investor had began this SIP three years in the past, its ₹10,000 month-to-month SIP would have grown to ₹5,94,110.

Should you make investments now?

Speaking on Edelweiss Small Cap Fund, Nidhi Manchanda, an authorized monetary planner mentioned, “Edelweiss Small Cap Fund is one of the best funds under Small Cap fund category as it has helped investors to more than double their money in around 3 years. Along with high returns, the fund has controlled the upward and downward volatility. It has a beta of 0.82, which indicates lower volatility and low market risk. It has beaten the benchmark returns with a positive alpha of more than 10 per cent.”

Advising mutual fund traders to decide on this fund in SIP mode, the licensed monetary planner mentioned, “It is suitable for investors planning to start an SIP for their long-term goals. Investors with an investment horizon of at least 5 years can opt for this fund. Instead of lumpsum investment, it is suggested to start an SIP or park the lumpsum in a short-term Debt Fund and start an STP in this fund. This is to avoid high exposure to equity at one go and instead diversify it over time.”

Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Subscribe to Mint Newsletters

* Enter a sound electronic mail

* Thank you for subscribing to our e-newsletter.

Topics