As an investor, it’s crucial to have a clear understanding of the performance of different small cap funds before making any investment decisions. In a recent tweet, Mr. B. Padmanabhan shared a list of small cap funds that have performed well in the past year. However, it’s important to interpret these numbers in the right context to avoid any misconceptions.
First and foremost, it’s essential to compare the performance of these small cap funds with the performance of the small cap index itself. During the period discussed, the small cap index gained an impressive 51.2%. Therefore, it’s crucial to note that more than half of the funds on the list have actually underperformed the index. This information is not meant to discredit or praise any particular fund; rather, it highlights the importance of having a reference point for comparison.
Out of the dozen small cap funds analysed, only five managed to outperform the small cap index, with three of them doing so by a considerable margin.
In comparison, our Smallcap strategy Mi 35 has managed to perform quite well compared to the Smallcap 250 benchmark while Mi 25 has remained in line.
One valuable tool for such comparisons is the Analytics Tool on the Weekend Investing website.
Here, investors can delve into the analytics section and compare different strategies, such as mid and small cap strategies. For example, two strategies analysed here are the Mi 20 and Mi 35.
Comparing the Mi 20 strategy to the Mi 400 strategy, during the period from January 12th, 2023, to January 11th, 2024, the Mi 20 strategy achieved an impressive 91% return, while the Mi 400 strategy gained 49.2%. This information can be instrumental in making investment decisions based on the historical performance of these strategies.
Another strategy, the HNI wealth builder, achieved a notable 68.53% absolute return within the same period, outperforming the mid and small cap 400 strategy, which gained 49.2%.
Utilising the analytics section of Weekend Investing’s website, investors can also compare different strategies against each other. Comparing the Mi 20 and Mi 35 strategies, for instance, reveals that the Mi 20 strategy achieved a 91% return, while the Mi 35 strategy achieved 74% within the same period.
This tool provides valuable insights into the historical performance of various strategies, helping investors make informed decisions.
If you have any questions, please write to support@weekendinvesting.com
