3 high-rated small-cap funds turn SIP of ₹10,000 to over ₹6 lakhs in 3 years

Small-cap funds are the only funds where positive inflows have marginally grown, while all other main categories of equity fund inflows have plummeted in July, as per AMFI. 

Small-cap funds have a high risk/high reward ratio, which means that high-risk investors can invest in small-cap funds using the SIP method 

Here are the 3 small-cap funds that have turned a monthly SIP of ₹10,000 to over ₹6 lakhs in a period of 3 years. 

1. Nippon India Small Cap Fund - Direct Plan

The fund was introduced on January 1, 2013, and as of this writing, Value Research has given it a 4-star rating. 

A monthly SIP of ₹10,000 established in this fund three years ago would now have grown to about ₹6.29 lakh according to the fund's trailing return of 35.78%. 

2. Kotak Small Cap Fund - Direct Plan

Since its introduction, Kotak Small Cap Fund Direct-Growth has generated returns of an average of 20.58% per year, and 11.59% during the past year.  

A monthly SIP of ₹10,000 established in this fund three years ago would now have grown to around ₹6.20 lakh according to the fund's trailing return of 37.68%. 

3. Edelweiss Small Cap Fund - Direct Plan

Since its introduction, Edelweiss Small Cap Fund Direct has produced average annual returns of 31.40%, with 1-year growth returns of 14.58%.  

A monthly SIP of ₹10,000 started in this fund three years ago would now have grown to around ₹6.22 lakh according to the fund's trailing return of 36.27% over the past three years.