Widely read:
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Summary: Forget the flashier names (Nippon India Small Cap, HDFC Small Cap and SBI Small Cap), this underdog small-cap fund has quietly outperformed almost everyone in the long run. Let’s find out the fund’s name and how consistently it has performed in the long run.
In a world obsessed with rankings and popularity, Kotak Small Cap Fund has flown under the radar. It isn't the biggest, flashiest or loudest small-cap fund out there. In fact, it's only the sixth largest fund in its category, with assets under management (AUM) topping Rs 18,000 crore. But over the past decade, it has delivered numbers that would make even the most celebrated funds blush.
Think of Kotak Small Cap Fund as the Rahul Dravid of mutual funds — no unnecessary noise, just strong performances.
What makes this fund special?
To find out, we dug deeper than just point-to-point returns. Instead of looking at fixed calendar returns, we examined five-year daily rolling returns over the last five years.
Why does this matter? Rolling returns help you understand how a fund performs consistently across market cycles — bull, bear and everything in between. It’s a much better lens for long-term investors than looking at one-time returns during market highs or lows.
And what we found was remarkable.
- 90.68 per cent of the time, Kotak Small Cap Fund has delivered annualised returns above 15 per cent. The only small-cap fund that has a better record is Axis Small Cap, which has delivered over 15 per cent returns 92 per cent of the time over a similar time frame.
- It has never delivered less than 4 per cent over any five-year period in the last five years.
- And perhaps most impressively, it has outperformed the benchmark 100 per cent of the time in those rolling periods.
Consistency is the middle name
Kotak Small Cap Fund has delivered strong double-digit returns with remarkable consistency
| Fund | Negative | 0-5% | 5-8% | 8-12% | 12-15% | Above 15% |
|---|---|---|---|---|---|---|
| Kotak Small Cap (direct) | 0.00% | 0.00% | 1.78% | 4.86% | 2.67% | 90.68% |
That’s not just outperformance. That’s dominance.
Want to start a Rs 10,000+ SIP in Kotak Small Cap Fund?
To know if this fund makes the cut, explore Value Research Fund Advisor — where our experienced analysts do the heavy lifting to shortlist funds with long-term wealth-building potential.
Head to the Analyst’s Choice section to see our top small-cap recommendations, handpicked with research, not hype.
…and invest with clarity
A word of caution, though. Small-cap funds come with higher volatility. While the long-term rewards can be significant, so can the short-term ups and downs. That's why selecting the right fund — and staying the course — matters even more.
Also read: 5 funds that turned ₹10k SIP into ₹12L+ in just 5 years
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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