Tenacity in Performance of Small and Mid-cap Mutual Funds in Indian Scenario- In support to Investors Decision

Abstract

Mutual funds play a crucial role in financial sector for small-scale and large-scale investors. Within the Indian scenario, there is a need to define criteria to guide the investors in selection between small-caps and mid-caps mutual funds. Although small-caps provide there is always a question of higher market risks compared to mid-caps. So, the work emphasizes on analysis performances of Small caps in comparison with mid-caps that would certainly support decision-making. In the present work a comprehensive assessment of existing mutual funds that involves small and mid-cap with respect to Indian scenario is presented and their performance in the market for the past ten years is analyzed. The study analyses the fund’s performance by considering parameters like market risk, momentum, expenses, size and value. The persistence and decision-making of the investor are discussed with respect to the small and mid-cap funds. In this regard, we have considered the best and worst-performing small and mid-cap funds according to their returns in a overall span of more than 3 years. A comparative analysis between the decision making parameters that are performing and underperforming during this period are considered. In this study, small-caps funds like HDFC small-cap fund, Kotak, DSP small Cap fund and Franklin India Small MF and in parallel, mid-cap funds including Kota Emerging equity, DSP Midcap and Axis Midcap and Franklin India are considered