The 3 most improved small-cap funds of the last 5 years

Summary: Three funds that were near the bottom of the charts between 2015–2020 have turned into top-half performers, with one even becoming the No. 1 small-cap fund of the last five years. So, which funds have pulled off this dramatic turnaround? Let’s find out If there’s one segment of the market that can make you feel like a genius one year and a fool the next, it’s small caps. These funds invest in some of the smallest listed companies, the ones with the most potential to grow but also the most prone to wild swings. That volatility is what scares many investors, but it’s also what creates the biggest wealth-building opportunities. The last decade is proof. Between September 2015 and September 2020, small-cap funds gave rather unremarkable returns, mostly in single digits, with just a few funds standing out. But the last five years have been a completely different story. Several small-cap funds have turned into wealth-compounding machines, and a few have delivered stunning performance compared to their past track record. Looking back: The 2015–2020 phase Let’s rewind to the September 2015 to September 2020 period. Here’s how the then 13 small-cap funds ranked on five-year returns back then: SBI Small Cap: 14.6 per cent (Rank 1) Axis Small Cap: 12.1 per cent (Rank 2) Nippon India Small Cap: 12.0 per cent (Rank 3) Kotak