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Economic Times
09-07-2025
- Business
- Economic Times
Best small cap mutual funds to invest in July 2025
iStock According to the Sebi mandate, small cap mutual funds must invest in companies that are ranked below 250 in terms of market capitalisation. Small cap mutual funds that invest in the stocks of very small companies have given over 26.38% in 2024. In May 2025, the small cap funds again gained investors' interest and received an inflow of Rs 3,214 talk about the higher valuations in the small cap space and the recent volatility in the market are forcing many investors to accept that a correction may be around the corner. Mutual fund managers and advisors say the valuations are rich but investors can continue to invest in small cap schemes to create wealth over a long period. According to many mutual fund advisors, even though the small cap segment has run up a lot in the last six months, investors can still invest in these schemes in a staggered manner to create wealth over a long period. Also Read | NFO Insight: Quant Mutual Fund's equity saving fund opens for subscription. Should you add this in current market scenario? Small cap schemes invest in very small companies or their stocks. According to the Sebi mandate, small cap schemes must invest in companies that are ranked below 250 in terms of market capitalisation. These schemes also will have to invest at least 65% in small cap stocks. Small companies go through many ups and downs - more than the established companies in the large and mid cap segments. That is why investing in small cap stocks is considered extremely risky; the small cap segment can also be extremely volatile, especially in the short term. That is why small cap schemes are recommended only to aggressive investors with a very high risk appetite and very long investment you wondering why anyone would take so much risk investing in small cap schemes? These schemes also have the potential to offer very high returns over a long period. For example, the small cap category offered an average return of 19% over 10 years. However, to pocket such fabulous returns you must be prepared to take so much risk and volatility. It is not very easy to identify winners in the small cap segment. Many of these companies are unknown. They are also under-researched. Their management can be unscrupulous and they can make big claims that can be bogus. Sometimes the management along with market operators can drive up prices. These are some of the reasons why the market rewards and punishes these companies these companies succeed, the market will be after these stocks and investors will suddenly have multi-baggers in their portfolio. However, if they falter, the stocks would be severely punished. Overnight the stocks can become absolute short, investing in small caps is not a child's play. You will have to find successful fund managers who specialise in small cap stocks. You should also pay attention to how the schemes fared during the market downturn. Also Read | 12 equity mutual funds offer over 25% CAGR in 5 years, smallcap funds lead Here are some small cap schemes you can invest to create wealth over a long period. Follow our monthly updates to keep track of the performance of these schemes. Axis Small Cap Fund has been in the third quartile for 26 months now. The scheme had been in the fourth quartile for two months before that. SBI Small Cap Fund has been in the fourth quartile in the last month. The scheme had been in the third quartile earlier. Kotak Small Cap Fund has been in the fourth quarter in the last two months. The scheme had been in the third quartile earlier. Nippon India Small Cap Fund had been in the first quartile for the last three months. Axis Small Cap Fund SBI Small Cap Fund Kotak Small Cap Fund Nippon India Small Cap Fund Our methodology:ETMutualFunds has employed the following parameters for shortlisting the Equity mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ii) When H <0.5,>iii) When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X =Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of Z 4. Outperformance: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} 5. Asset size: For Equity funds, the threshold asset size is Rs 50 crore (Disclaimer: past performance is no guarantee for future performance.) 0.5,>
Time of India
09-07-2025
- Business
- Time of India
Best small cap mutual funds to invest in July 2025
Small cap mutual funds that invest in the stocks of very small companies have given over 26.38% in 2024. In May 2025, the small cap funds again gained investors' interest and received an inflow of Rs 3,214 crore. The talk about the higher valuations in the small cap space and the recent volatility in the market are forcing many investors to accept that a correction may be around the corner. Mutual fund managers and advisors say the valuations are rich but investors can continue to invest in small cap schemes to create wealth over a long period. According to many mutual fund advisors, even though the small cap segment has run up a lot in the last six months, investors can still invest in these schemes in a staggered manner to create wealth over a long period. Also Read | NFO Insight: Quant Mutual Fund's equity saving fund opens for subscription. Should you add this in current market scenario? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Small cap schemes invest in very small companies or their stocks. According to the Sebi mandate, small cap schemes must invest in companies that are ranked below 250 in terms of market capitalisation. These schemes also will have to invest at least 65% in small cap stocks. Small companies go through many ups and downs - more than the established companies in the large and mid cap segments. That is why investing in small cap stocks is considered extremely risky; the small cap segment can also be extremely volatile, especially in the short term. That is why small cap schemes are recommended only to aggressive investors with a very high risk appetite and very long investment horizon. Should you invest in small cap funds? Are you wondering why anyone would take so much risk investing in small cap schemes? These schemes also have the potential to offer very high returns over a long period. For example, the small cap category offered an average return of 19% over 10 years. However, to pocket such fabulous returns you must be prepared to take so much risk and volatility. Live Events It is not very easy to identify winners in the small cap segment. Many of these companies are unknown. They are also under-researched. Their management can be unscrupulous and they can make big claims that can be bogus. Sometimes the management along with market operators can drive up prices. These are some of the reasons why the market rewards and punishes these companies disproportionately. If these companies succeed, the market will be after these stocks and investors will suddenly have multi-baggers in their portfolio. However, if they falter, the stocks would be severely punished. Overnight the stocks can become absolute dud. In short, investing in small caps is not a child's play. You will have to find successful fund managers who specialise in small cap stocks. You should also pay attention to how the schemes fared during the market downturn. Also Read | 12 equity mutual funds offer over 25% CAGR in 5 years, smallcap funds lead Here are some small cap schemes you can invest to create wealth over a long period. Follow our monthly updates to keep track of the performance of these schemes. Axis Small Cap Fund has been in the third quartile for 26 months now. The scheme had been in the fourth quartile for two months before that. SBI Small Cap Fund has been in the fourth quartile in the last month. The scheme had been in the third quartile earlier. Kotak Small Cap Fund has been in the fourth quarter in the last two months. The scheme had been in the third quartile earlier. Nippon India Small Cap Fund had been in the first quartile for the last three months. Best small cap funds to invest in July 2025: Axis Small Cap Fund SBI Small Cap Fund Kotak Small Cap Fund Nippon India Small Cap Fund Our methodology: ETMutualFunds has employed the following parameters for shortlisting the Equity mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ii) When H <0.5, the series is said to mean reverting. iii) When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X =Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} 5. Asset size: For Equity funds, the threshold asset size is Rs 50 crore
Time of India
08-07-2025
- Business
- Time of India
NFO Alert: Bandhan Mutual Fund launches multi-factor fund
Bandhan Mutual Fund has announced the launch of Bandhan Multi- Factor Fund, an open-ended equity scheme investing based on an adaptive and evolving multi- factor quantitative model theme. The new fund offer (NFO) of the fund will open for subscription on July 10 and will close on July 24. Also Read | NFO Insight: Quant Mutual Fund's equity saving fund opens for subscription. Should you add this in current market scenario? Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Brain tumor has left my son feeling miserable; please help! Donate For Health Donate Now Undo The fund offers investors diversified exposure by blending four time-tested investment factors—Momentum, Value, Quality, and Low Volatility—into a single portfolio. The fund will be benchmarked against BSE 200 TRI and will be managed by Rishi Sharma and Brijesh Shah. Live Events 'As markets become increasingly dynamic, investors need strategies that can adapt and remain resilient through cycles. Multi-factor investing has emerged as a compelling equity strategy, especially in a market where no single factor consistently leads across all conditions,' said Vishal Kapoor , CEO, Bandhan AMC. 'Momentum tends to perform well in bull markets, value during recoveries, quality in slowdowns, and low volatility in uncertain phases. By combining these factors, the Bandhan Multi-Factor Fund aims to reduce reliance on any one factor and enhance overall risk-adjusted returns,' Kapoor added. The portfolio is constructed from a universe of the top 250 large and mid-cap companies. Each stock is scored on the four factors, after which the most effective factor combinations are shortlisted. A final score is then assigned to each stock, and a portfolio of approximately 50– 65 stocks is created, guided by a defined risk management framework. The fund is well-suited for investors seeking to move beyond traditional equity styles and adopt a more structured, data-driven approach to long-term equity investing. The fund is suitable for investors who are seeking to create wealth over a long term and want investment predominantly in equity and equity related instruments based on an adaptive and evolving multi-factor quantitative model. Also Read | JioBlackRock Mutual Fund seeks Sebi nod to launch 8 new funds: Report The minimum investment amount for lumpsum purchase is Rs 1,000 and in multiples of Re 1 thereafter. For SIP, the minimum investment is Rs 100 and in multiples of Re 1 thereafter with minimum six installments. The fund will allocate 80-100% in equity and equity related instruments selected based on multi-factor quantitative model theme, 0-20% in other equities and equity related securities, 0-20% in debt securities and money market instruments (including Government securities, Securitised debt), and 0-10% in units issued by REITs & InvITs.
Time of India
08-07-2025
- Business
- Time of India
Best mid cap mutual funds to invest in July 2025
Many mutual fund investors are worried about the valuations in the mid cap space. Mid cap stocks have witnessed a robust rally in the longer term. Investors made handsome returns on their investments in mid cap funds. That could explain why investors are anxious about their investments. What should investors do? Before answering that question, let us cover the basics. Mid cap schemes invest in mid cap stocks or in stocks of medium-sized companies. As per Sebi norms, the mid cap mutual funds are mandated to invest in companies that are between 101 and 250 in the market capitalisation. These companies can be leaders of tomorrow. That's what makes them great bets. If these companies live up to the promise, the market will reward the investors handsomely. Also Read | NFO Insight: Quant Mutual Fund's equity saving fund opens for subscription. Should you add this in current market scenario? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » What happens when these companies don't live up to their promises? Well, the market punishes such companies. And some of these companies would have managements that are not clean. In fact, corporate governance is an area that plagues many mid cap and small cap companies. Markets, again, punish such companies severely. This is what makes investing in mid cap companies risky. Being a mutual fund investor, you cannot overlook these aspects of investing in mid cap companies. You should invest in these schemes only if you have very high risk tolerance. You should also have a longer investment horizon of, say, seven to 10 years. A longer investment horizon would help investors to navigate the volatility better. Live Events Sure, the valuations have peaked. So, investors shouldn't look for quick gains. Now is the time for great caution. Proceed with your regular investments. However, be prepared for some volatility and short-term losses. If you are convinced that mid cap schemes are the best suited for you, here are our recommended mid cap schemes. Please follow our monthly update to find out regularly how your schemes are performing. Invesco India Midcap Fund has been in the first quartile in the last two months. The scheme had been in the second quartile earlier. Axis Mid Cap Fund has been in the third quartile in the last two months. The scheme had been in the fourth quartile earlier. Tata Midcap Growth Fund has been in the third quartile in the last seven months. The scheme had been in the second quartile earlier. PGIM India Mid cap Opportunities Fund has been in the fourth quartile for the last 15 months Also Read | Mutual fund SIP guide: How to invest for the rest of 2025 Best mid cap mutual funds to invest in July 2025: Axis Midcap Fund PGIM India Midcap Opportunities Fund Invesco India Midcap fund Kotak Emerging Equity Fund Tata Midcap Growth Fund Our methodology: ETMutualFunds has employed the following parameters for shortlisting the Equity mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ii) When H <0.5, the series is said to mean reverting. iii) When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X =Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} 5. Asset size: For Equity funds, the threshold asset size is Rs 50 crore
Time of India
13-06-2025
- Business
- Time of India
Indian stock market outperforms global market indices: Bandhan Mutual Fund
India emerged as the top-performing market globally in the three months ending May 2025, delivering a robust 16% return. In comparison, emerging markets gained 5%, while world and developed market indices saw modest gains of just 2% during the same period, according to the latest Bandhan Mutual Fund Monthly Market Outlook. According to the outlook, India is also the top performing market over a longer period of five years, delivering US dollar returns of 18%, beating the 12% return of the world and developed markets and delivering more than 4X the emerging market returns and India's returns from the lows hit on March 20. Source: Bandhan Mutual Fund June 25 Market outlook Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » In May, China stood out amongst major markets globally by falling 2%, whilst other major global markets saw gains. Also Read | NFO Insight: Baroda BNP Paribas Health and Wellness Fund opens. Is it the right prescription for your portfolio? Live Events In terms of market capitalisation, small caps have given the best returns over the last 3 months, 5 years and since March 2020. Mid caps were the second-best-performing capitalisation category over the same period, followed by the large caps. Source: Bandhan Mutual Fund June 25 Market outlook In May 2025, while most sectoral indices showed gains, utilities gave almost flat returns, while metals were marginally negative. In contrast, industrials, capital goods and telecom all delivered double-digit gains in May, while the lowest positive gains in the sector were delivered by the traditionally defensive sectors of FMCG, Healthcare and IT. India's Services Purchasing Manager's Index (PMI) increased m-o-m, indicating a service sector recovery. Conversely, the Manufacturing PMI declined m-o-m, indicating a slowdown in the manufacturing sector. Continued weakness in the US$, falling interest rates in the domestic economy, and earnings broadly in line with muted expectations helped drive the market higher in May 2025, said the fund house in its June 2025 market outlook. 'We expect continued volatility during the next couple of quarters, as the US continues to sign trade deals. While economic activity has remained strong due to the front-loading of global trade, there could be significant disruptions as the tariffs come into force. The domestic economy seems to be turning around and is much better placed than the global economy,' said Manish Gunwani , Head Equities, Bandhan AMC. Also Read | HDFC Defence Fund adds Bharat Forge and Bharat Dynamics in its portfolio in May On the fiscal front, India's FY25 central government accounts met the revised estimate of 4.8% of GDP , with the FY26 deficit budgeted at 4.4%. Inflation data showed negative momentum in CPI food prices for the sixth consecutive month, and core inflation inched up. The India Meteorological Department (IMD) forecasts an 'above-normal' southwest monsoon, contributing to a benign inflation outlook. Bank credit outstanding as of May 16, 2025 grew 9.8% YoY, with deposits up 10% YoY. 'The recent surprise 50 bps rate cut and 100 bps CRR cut by the RBI underscore a proactive stance to ensure rapid monetary transmission, aiming to support growth,' said Suyash Choudhary, Head fixed income, Bandhan AMC.
