As 2024 comes to an end, investors are eyeing this year’s performance of small and mid cap funds. Also, the search for top funds for investment in 2025 has also started. Let us know the top small and mid cap funds of 2024, possible best options for 2025, and what things should be kept in mind before investing in these funds.
Small Cap Funds: Top Performers of 2024
small cap funds has given excellent returns to investors this year. Here is the list of top 5 small cap funds:
| Fund Name | 1 year return | AUM(₹ crore) |
|---|---|---|
| Bandhan Small Cap Fund | 46.5% | 9248 |
| Invesco India Small Cap | 39.5% | 5842 |
| Tata Small Cap Fund | 33.9% | 9572 |
| Bank of India Small Cap | 33.3% | 1613 |
| HSBC Small Cap Fund | 33.1% | 17237 |
Small Cap Outlook to 2025
In 2025, these funds are likely to perform strongly:
- Bandhan Small Cap Fund
- Invesco India Small Cap
- SBI Small Cap Fund
- Nippon India Small Cap Fund
- Kotak Small Cap Fund
in these funds long-term investment There may be opportunities for investors with high risk appetite.
Mid Cap Funds: Top Performers of 2024
Mid cap funds have also given good returns to investors like small cap funds. Here is the list of top 5 mid cap funds of 2024:
| Fund Name | 1 year return | AUM(₹ crore) |
|---|---|---|
| Motilal Oswal Mid Cap | 56% | 22898 |
| Invesco India Mid Cap | 47.1% | 5863 |
| HSBC Mid Cap Fund | 43.5% | 11912 |
| Edelweiss Mid Cap Fund | 42.2% | 8280 |
| JM Mid Cap Fund | 36.7% | 1696 |
Mid cap outlook for 2025
The mid cap funds suggested to invest in 2025 are:
- Motilal Oswal Mid Cap Fund
- Invesco India Mid Cap Fund
- HSBC Mid Cap Fund
- Edelweiss Mid Cap Fund
- Mahindra Manulife Mid Cap Fund
These funds can be beneficial for investors who medium to long term Want to invest for.
Things to keep in mind before investing
Small and Mid Cap Funds The following points should be kept in mind while investing in:
- AUM (Assets Under Management):
The AUM of the fund shows how big the fund is and how much investors trust it.
- Portfolio Analysis:
Understand the number and diversity of stocks in the portfolio.
- Fund manager details:
The experience of the fund manager and his investment strategies are important.
- Expense Ratio:
Funds with lower expense ratios are generally more profitable.
- Fund Performance and Turnover Ratio:
Check past performance and turnover ratio (how many times the portfolio has been turned over).
Investment Risks in Small and Mid Cap Funds
- Volatility:
Small and mid-cap stocks are more volatile, which can lead to fluctuations in returns.
- Performance Fluctuation:
Fund performance may change over time.
- Long recovery period:
Recovery may take longer during market downturns.
