Instead, stop the SIP and let the invested amount remain and grow over time in the past funds. Then, don’t exit the investment in the old fund. Suppose you have not selected a better performing fund earlier or want to move to a new fund for any other reason (move to regular to direct funds). So, it is essential to go with a fund that has been doing it well in the past. Small-cap investment is all about investing in future leaders. So now I can be a little more confident that the process we are using ValueResearchOnline and CRISIL to choose the best small-cap fund for investing is working. It means either we do well investing or learn from the selection process.īoth the funds have returned 64% and 80%, respectively, which is impressive.
I share the series of best funds because we evaluate how we have done in the past. How Well The Best Small-Cap Fund of 2021 Performed? Moreover, CRISIL ranks Kotak Small Cap Fund as the best small-cap fund for 2022.Īnd don’t forget to check out the best large-cap fund for 2022 and the best mid-cap fund for 2022. So if one wants to opt for diversification, one can opt for more than one small-cap fund. Small-cap fund performance can vary greatly depending on the stock selection process. So, I think it should continue its outperformance in 2022 and be part of your portfolio in 2022 for sure. It has a lower expense ratio and has been a stellar performer in 2021. Tata small-cap fund has everything one needs to outperform in 2022. However, it can change as 2022 unfolds with new surprises, including inflation. At least, that is the view I have right at this moment. Lower expense ratio and correct allocation to the small-cap stocks can mean the fund can outperform in 2022 when the Nifty and Sensex consolidates. Small-cap performance depends mainly on selecting good and quality small-cap stocks that can become mid-cap and large-cap over time. We use 3,4, and 5 star rated funds instead of only 4-star and 5-star rated funds because there is only one fund rated as five stars and only five funds as 4 star.
We will use the process to come to the best small-cap fund for 2022 is – from the 3, 4, and 5-star rated small-cap fund by ValueResearchOnline, we will compare the performance for the past year along with the expense ratio to get the best small-cap fund. Voda Idea may have tripled or quadrupled from its low, but Bharti Airtel Investors may be better off in the long term. Investing in the right stocks and funds in 2021 made sure there is joy in the long run though you may sound foolish in the short term. Of course, anything and everything was rallying, but that doesn’t mean you can invest in low-quality stock. So it was even more challenging for small-cap stocks and predominantly small-cap funds to outperform. The year 2021 was quite different because it saw complete optimism. Let us find the best small-cap mutual fund to invest for 2022 and review the performance of our choice of best small-cap fund for 2021.