If an investor has the patience to tolerate volatility and is willing to take some additional risk, these funds can earn high returns.
Smallcap funds have returned 28.59% over the past three years, according to reports released by mutual fund tracking firm Value Research.
12 projects in this category are giving more than 30 percent return. Out of which the quant small cap fund has given a higher return of 44.11% to its investors.
It is followed by Bank of India Small Cap Fund at 38.90 percent, Canara Robeco Small Cap Fund at 38.61 percent and Aditya Birla Sun Life Small Cap Fund at 18.20 percent.
Small cap schemes generally come with higher risk from a volatility perspective. However compared to Large CAP companies they have been performing well over the long term.
Disclaimer: Mutual fund schemes are subject to market risks. Consult your advisor before investing and invest at your own discretion.