These Small-Cap Mutual Funds Discovered the Most Multibaggers in the Last 3 Years

Over the past 3 years, some funds have managed to identify multibaggers, stocks that have grown over 3 times their value. But does finding more multibaggers necessarily mean better returns? 

Small-Cap Funds and Their Multibaggers 

Among small-cap funds, Nippon India Small Cap stands out with 26 multibaggers from 361 stocks, achieving a hit rate of 7%. ITI Small Cap follows with 18 multibaggers from 224 stocks.  

Franklin India Small Cap, despite having fewer holdings, boasts a hit rate of over 11% with 17 multibaggers from 152 stocks. HDFC Small Cap also achieved an 11.5% strike rate. 

Bandhan Small Cap, the category leader over the last 3 years, had only 13 multibaggers from 386 stocks. 

Does More Multibaggers Mean Better Returns? 

Contrary to popular belief, more multibaggers do not automatically translate to better returns. For instance, Franklin and HDFC had higher success rates than Bandhan, yet Bandhan outperformed with a 3-year annualised return of 30.6%. The key lies in the size and duration of holding these multibaggers. 

Read More: Indian Mutual Fund and Equity Assets Projected to Grow Sixfold by FY2035: Report! 

Prominent Multibagger Stocks 

Some stocks have been pivotal in driving returns for these funds. Kaynes Technology, for instance, delivered 11x returns for Nippon India. ITI Small Cap benefited from a 10x surge in Inox Wind. Across the industry, Multi Commodity Exchange of India and Hitachi Energy were significant contributors. 

Conclusion 

While identifying multibaggers is crucial, the real story is about owning the right ones in the right sizes for the right duration. Investors should focus on their risk tolerance and investment horizon rather than chasing funds with the most multibaggers. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.