| Fund | Reasoning | How to use |
|---|---|---|
| Axis Small Cap | Compact portfolio with a stock-specific approach can deliver better returns; it uses a growth-based approach, picking stocks with strong earnings. It takes cash calls in difficult markets - helping containing losses, important in small-cap funds and helps mitigate risk in rallies that have gone on too long. It is lower-volatile than peers, with improving consistency across timeframes, and better-than-average return. | Suitable for high-risk investors with a 5+ year timeframe. Strategy can be useful now, as cash holding can help pick up stocks at cheaper prices. Can be paired with less aggressive mid-cap funds or along with large-and-midcap funds, and value-based funds. |
| Invesco India Mid Cap | Steady improvement in performance. Beats the Nifty Midcap 100 TRI 77% of the time on a 1-year rolling return basis over the past 3 years, which is close to the best in category. Returns better than peers; average 3-year returns are 1.3 percentage points higher than category average. It has contained downsides better than the index and peers, besides showing strong performance in market upsides as well. | Follows a growth-based bottom-up approach, but can take broader sector calls. It is also among the more aggressive in this category, with higher small-cap calls. Can be used by high-risk (and to a limited allocation by moderate risk investors) with a 5+ timeframe. Pair with less aggressive midcap or large-and-midcap funds. |
