In the last few months, there has been a lot of volatility in the stock market, which has affected all categories of mutual funds. Indian equity benchmark indices Sensex and Nifty have shed 14% and 16%, respectively, in the last 5 months. Broader indices like BSE Smallcap and BSE Midcap have crashed over 25% and 22%, respectively.
Among all the major mutual fund categories, the biggest blow has been to small-cap funds amidst the current market mayhem. In the last 1 month, 3 months and 1 year, small-cap funds have performed the worst compared to mid-cap, large-cap, flexi-cap, and multi-cap funds.
In the small-cap funds category, the average return has been (-)11.82% in the last one month, (-)22.11% in 3 months and (-)4.35% in the last 1 year.
In contrast, the mid-cap funds have performed a little better, with an average return in the category at (-)9.95% returns in 1 month, (-)17.81% in 3 months and 0.19% for 1 year. Large-cap funds too have shown some resilience but the average return in this category also remained in the negative zone. The returns have been (-)7.55% in 1 month, (-)11.96% in 3 months and (-)1.33% in 1 year.
Also read: Large-Cap Funds: 28 of 33 fail to deliver even 5% returns in 1 year! Check 10 worst-performing schemes
Flexi-cap and multi-cap funds
The flexi-cap funds category has seen an average 1-month return at (-)8.53%, 3-month yield at (-)14.95% and 1-year return at (-)0.34%. Likewise, the multi-cap category has seen an average return of (-)9.24% in 1 month, (-)16.43% in 3 months and (-)0.30% in 1 year.
Compared with these above-mentioned categories, this decline in small-cap funds makes it clear that the shares of small companies are most sensitive to market uncertainties and when the market falls, they suffer the most.
No category is safe
If we talk about the last 5 months, the market turmoil has harmed almost all equity funds. All categories of funds have given negative returns during this period. However, the biggest decline has been seen in small cap funds. The reason for this is that these include small and emerging businesses, which prove to be weaker in withstanding market shocks than large companies.
10 worst performing small-cap funds in the last 1 year
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