Quant Small Cap Holders, Do You Know ? Your Fund has India's Highest 5-Year Returns, But Also Its Lowest 1-Year.

Its 1-year return is among the lowest in the small-cap category, at a modest -5.41%. Yet, flip the coin and look at its 5-year return, and you'll find it leading the pack with an impressive 48.30%.

When most of us embark on the journey of analyzing mutual funds – any fund, for that matter, but let's stick to small-cap funds for now – the first, and perhaps, often the only, metric we tend to scrutinize is performance. While looking at returns is inherently not a bad thing, making your final investment decision based solely on a single performance snapshot can prove to be financially costly.

Let's delve into why, using a compelling case study.

Enter the Quant Small Cap Fund. Take a glance at its recent performance (based on April 2025). You'll notice a curious paradox: its 1-year return is among the lowest in the small-cap category, at a modest -5.41%. Yet, flip the coin and look at its 5-year return, and you'll find it leading the pack with an impressive 48.30%. This striking contrast – short-term lag versus long-term leadership – is quite bizarre, isn't it?

To truly appreciate this, let's briefly compare it with some other popular funds in the category. The Bandhan Small Cap Fund, for instance, has delivered a healthy 1-year return of 10.68%, while its 5-year return stands at 34.85%. Similarly, the Tata Small Cap Fund shows a 1-year return of 0.72% and a 5-year return of 33.52%. These funds exhibit a more consistent performance across both horizons, making Quant's pattern particularly intriguing.

So, why this seemingly bizarre behaviour from Quant Small Cap Fund?

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