Top 5 Mutual Funds Making The Highest NAV Recovery In The Last Week

Recently small-cap and mid-cap funds saw a significant drop in their respective NAVs after the regulator announced stress testing of small-cap and mid-cap funds. But in the last 4 days, the markets have recovered sharply while the mutual funds have also bounced back intensely. From the data, we found out that the thematic funds have recovered 3.47% and small-cap has bounced 2.84% in a week. In this article, we will review the top three thematic mutual funds and the top two small-cap funds that showed the highest rise in NAV in the last week.

The small-cap funds, which had been sharply climbing, have recently hit a pause due to significant profit-taking and facing the impact of SEBI’s stress test. Over the past year, there was an impressive surge, but now the Nifty Small-cap 100 index has dropped by almost 11.91% since its all-time high, while the Nifty 50 index has seen a 2% drop. The Nifty Mid-cap 100 index also experienced a slight decline of about 6.96% during this time.

The rapid increase in the fund’s value raised concerns among investors that the small-cap market might have become overheated and unsustainable. Many anticipated a significant correction, which we saw last month. The reason is that SEBI’s recommendation to stress test the small-cap and midcap portfolio of the mutual funds drew down the market and raised concerns about the valuations.

The above data is calculated from February 7 to March 21

Following are the top 5 mutual fund schemes that showed sharp recovery in NAV

UTI Innovation Fund has a Net Asset Value (NAV) of Rs 10.4786 as of March 21st, 2024, with a fund size of Rs 624.38 crore, constituting 0.22% of the investment in its category. The expense ratio stands at 0.96%, slightly higher than the category average of 0.93%.

Quant ConsumptionFund boasts a NAV of Rs 10.3955 on March 21st, 2024, with a fund size of Rs 227.27 crore, representing 0.08% of the investment in its category. Its expense ratio is 0.77%, which is lower than the category average of 0.93%.

Motilal Oswal Small Cap Fund has an NAV of Rs 10.073 as of March 21st, 2024, and a fund size of Rs 1490.82 crore, comprising 0.6% of the investment in its category. With an expense ratio of 0.61%, it aligns perfectly with the category average.

HDFC Transportation and Logistics Fund also features an NAV of Rs 10.073 as of March 21st, 2024, with a fund size of Rs 1490.82 crore, making up 0.6% of the investment in its category. Its expense ratio, at 0.61%, is in line with the category average.

PGIM India Small Cap Fund exhibits an NAV of Rs 13.61 as of March 21st, 2024, with a fund size of Rs 1437.88 crore, representing 0.58% of the investment in its category. Its expense ratio is notably lower at 0.51%, compared to the category average of 0.61%.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.