The Total Expense Ratio (TER) of a Mutual Fund plays an important role in deciding the total return on your investments.
The Total Expense Ratio (TER) of a Mutual Fund plays an important role in deciding the total return on your investments. Experts believe that a fund with a lower expense ratio has a higher chance of outperforming other schemes in its category. This article looks at the TER of direct and regular plans of various small-cap funds as on June 21, 2023, as per data on the website of the Association of Mutual Funds in India (AMFI).
Data shows that Nippon India Small Cap Fund has the lowest TER of 1.59% under the regular plan, followed by Quant Small Cap (1.64%), HDFC Small Cap Fund (1.68%), Axis Small Cap Fund (1.68%) and Kotak Small Cap Fund (1.7%). (See chart below)
In one year, the regular plan of Nippon India Small Cap Fund has given 44.23% returns. The one-year regular plan return of Quant Small Cap fund has been 43.98% while HDFC Small Cap Fund’s regular plan has given a return of 49.17% in one year. The regular plan of Axis Small Cap Fund has given 32.57% returns in one year while Kotak Small Cap Fund has given 28.11% returns in this duration.
Total Expense Ratios of Small Cap Funds as on June 21
| Small Cap Fund | Regular Plan – Total TER (%) | Direct Plan – Total TER (%) |
| Aditya Birla Sun Life Small Cap Fund | 1.94 | 0.91 |
| Axis Small Cap Fund | 1.68 | 0.55 |
| BANDHAN Emerging Businesses Fund | 2.07 | 0.67 |
| Bank of India SMALL CAP FUND | 2.37 | 0.94 |
| Canara Robeco Small Cap Fund | 1.75 | 0.4 |
| DSP Small Cap Fund | 1.78 | 0.92 |
| Edelweiss Small Cap Fund | 2.02 | 0.48 |
| Franklin India Smaller Companies Fund | 1.79 | 0.82 |
| HDFC Small Cap Fund | 1.68 | 0.78 |
| HSBC Small Cap Fund | 1.75 | 0.73 |
| ICICI Prudential Smallcap Fund | 1.84 | 0.74 |
| IDBI Small Cap Fund | 2.51 | 1.54 |
| Invesco India Smallcap Fund | 2.03 | 0.76 |
| ITI Small Cap Fund | 2.06 | 0.28 |
| Kotak Small Cap Fund | 1.7 | 0.45 |
| Mahindra Manulife Small Cap Fund | 2.22 | 0.47 |
| Nippon India Small Cap Fund | 1.59 | 0.76 |
| PGIM India Small Cap Fund | 1.98 | 0.37 |
| QUANT SMALL CAP FUND | 1.64 | 0.64 |
| SBI SMALL CAP FUND | 1.82 | 0.72 |
| Sundaram Small Cap Fund | 2.03 | 0.91 |
| Tata Small Cap Fund | 1.9 | 0.45 |
| Union Small Cap Fund | 2.3 | 1.19 |
Under Direct Plan, ITI Small Cap Fund has the lowest TER of 0.28%, followed by PGIM India Small Cap Fund (0.37%), Canara Robeco Small Cap Fund (0.4%), Kotak Small Cap Fund (0.45%), Tata Small Cap Fund (0.45%).
Also Read: What is Total Expense Ratio (TER) of a mutual fund and how it affects your SIP returns?
In one year, the direct plan of ITI Small Cap Fund has given 40.88% returns. The one-year direct plan return of PGIM India Small Cap Fund fund has been 24.36 while Canara Robeco Small Cap Fund’s direct plan has given a return of 29.82 in one year. The direct plan of Kotak Small Cap Fund has given 29.76% returns in one year while Tata Small Cap Fund has given 43.74 returns in this duration.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.
