2018 was one of the most volatile years in recent time for investors. Despite having faced an unpredictable year, the following small-cap funds have performed better than its benchmark in 2018.
|Fund||1 Year Return||Alpha (Fund Return - Benchmark Return)|
|Axis Multicap Fund||5.79%||11.09%|
|UTI Equity Fund||1.19%||3.59%|
|Canara Robeco Equity Diversified Fund||1.19%||2.98%|
Axis Multicap Fund gave a return of 5.79% in one year while its benchmark gave a negative return of 5.3%. The fund invests in companies across market capitalization. It aims to offer investors an ideal mix of equities by minimizing risks and provide a long-term return in a volatile market. The fund launched in November 2017 and gave a return of 6.7% since then. Investing in multi cap funds is better than investing in pure mid and small-cap funds as the fund manager has the scope of capturing the opportunities in the market. In the one-year return category, the fund has performed way better than it’s peers and benchmark.
UTI Equity Fund gave a return of 1.19% in one year while its benchmark gave a negative return of 2.4%. The fund focuses on quality and invests in companies that have the ability to show strong growth for a long period and perform across market cycles. The fund follows a bottom-up process to stock selection. The fund’s 3 and 5-year return are 1 percentage point ahead of its category and 1-3 percentage points ahead of its benchmark. A SIP worth ₹5,000 in this fund started 5 years ago is worth ₹3.95 lakhs now.
Canara Robeco Equity Diversified Fund gave a return of 0.58% while its benchmark gave a negative return of 2.4%. The fund aims to deliver robust and better risk-adjusted returns by taking a flexible approach to investing in a mix of large cap and mid & small cap companies based on relative valuation. The fund focuses on bottom-up stocks selection with top-down risk allocation. The fund’s 3 return is 2 percentage point ahead of its category and its 5-year return is 1 percentage points ahead of its benchmark. A SIP worth ₹5,000 in this fund started 5 years ago is worth ₹3.95 lakhs now. The fund gave 18% return since its launch in 2003.
These multi cap funds, despite bad market conditions, have performed well in 2018.