Performance Comparison of Selected Small Cap Mutual Fund Schemes

Mutual fund industry has witnessed tremendous growth in the recent years and have been successful in offering variety of schemes. These schemes ensure that they offer investment opportunities to all categories of investors: conservative, moderate / balanced as well as aggressive. Small cap funds are the schemes which specifically invest in equity stock of small cap companies which are the ranked from 251st onwards in terms of full market capitalization. The objective of the research paper is to anlayse the risk-adjusted performance of selecte small-cap mutual fund schemes using Standard deviation, Beta, Sharpe ratio, Treynor ratio and Jensen alpha. The results indicate that most selected small-cap funds have outperformed the benchmark both in absolute and risk-adjusted terms, with Quant, Nippon, and Bandhan leading overall performance. Despite higher volatility, the category has consistently delivered strong alpha and competitive returns.