Meet the outperfomer: This smallcap fund jumped 185% with these stocks

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Smallcap mutual funds have outpaced mid and largecaps in the domestic equity market. On an average, smallcap funds have gained 109% during the past one year with Quant Small Cap fund rallying the most (185%).

The latest data available with Value Research shows that the fund has given a maximum 25.71% weightage to the chemical sector in its portfolio, followed by healthcare (19.89%), FMCG (11.01%), metals (9.65%) and technology (7.50%).

As of February 28, 2021, the mutual fund held stocks like Stylam Industries, Tata Steel Long Products, Neuland Laboratories, Mastek, Fortis Healthcare, Balaji Amines, Bharti Airtel, Deepak Fertilisers, Bharat Rasayan and Linde India, among others.

On the other hand, Kotak Small Cap, Nippon India Small Cap, Motilal Oswal Nifty Smallcap, ABSL Small Cap, Canara Robeco Smallcap and Edelweiss Small Cap funds have also gained between 115-138% in the past one year.

Commenting on the broader markets, Rusmik Oza, Executive Vice President, Head of Fundamental Research, Kotak Securities said, “We see smallcaps having better scope to outperform large caps. Between midcaps and largecaps, we would prefer largecaps because valuations of the Nifty Midcap 100 is higher than Nifty50 on forward PE basis.”

Midcap funds on an average have delivered 93% return to investors since April 5 last year, while largecap mutual funds gained 75% during the same period. With a gain of around 128%, PGIM India Midcap Opportunities Fund emerged as the top gainer in the midcap space. It was followed by SBI Magnum Midcap (up 111%), Mirae Asset Midcap (110%), Quant Midcap (107%) and ICICI Prudential Midcap (up 105.80%).

In the largecap space, Quant Focused, which delivered 99.22% return to investors, emerged as the top gainer in the list. DSP Equal Nifty50, Franklin Bluechip, SBI Bluechip and Principal Nifty100 Equal have also gained between 83%-96%.

Gopal Kavalireddi, Head of Research, FYERS said, “The broader market may continue to outperform in the coming months. Also, with government taking proactive steps to promote economic recovery in the form of various reforms and implementation of schemes, the mid and small caps are expected to be the larger beneficiaries in comparison to their largecap peers.”