Do you know any mutual fund which has given such a great return, no? Well, there is this small-cap mutual fund that has given this supernormal returns.
Quant Small Cap Fund has given an amazing return of 169.8% in the last year. The benchmark S&P BSE 250 Smallcap TRI has appreciated 106.25% in the same time frame. This is mainly because of the timing. Markets tanked down last year in March and April and have created new highs recently.
source – valueresearchonline.com
There are quite a few smallcap funds that have given returns of over 100% in this time frame.
Quant Small Cap Fund specifically invested in 37 stocks and is highly concentrated, with the top 5 holdings accounting for 31% of the portfolio.
Funds top holdings –
source – valueresearchonline.com
Surprisingly the fund size is only 135 crores and is given one star by several publications.
The small size of the fund probably has given the benefits of selecting some great stocks in their portfolio. Their major investment is in the chemical sector, which has performed really well in the last year.
Reminds me of the article I read recently on what benefits small investors have over large investors.
“Small investors can beat huge funds. With over $300 billion, as Warren Buffett has in the value of his Berkshire Hathaway, he can not consider small investments in small companies. Mr. Buffett seeks big plays in very big companies. He has to find and go huge in huge companies or pass the investment opportunity.” (source)
Kudos to the Fund manager Ankit Pande and others who had been managing this fund.
Have any views on this fund? Comment and share your thoughts.