buy at low, sell at high, best mutual fund among 10?
Mutual funds that follow a strategy of buying low-value stocks (often small-cap or undervalued stocks) with potential for future growth, selling after appreciation, and reinvesting in new low-value opportunities are typically categorized as value funds, small-cap funds, or opportunistic equity funds. These funds aim to capitalize on market inefficiencies and long-term growth. Based on available data and market trends as of August 8, 2025, 8:10 PM IST, the following list highlights the top 10 mutual funds in India that align with this strategy, with the best 5 also evaluated for Nifty inclusion or relevance.
Top 10 Mutual Funds
- Bandhan Small Cap Fund: Focuses on small-cap stocks with growth potential, high risk, ~25% 3-year CAGR.
- Motilal Oswal Midcap Fund: Targets mid-cap undervalued stocks, sells post-growth, ~22% 3-year CAGR.
- HDFC Small Cap Fund: Invests in low-value small-cap stocks, reinvests after gains, ~23% 3-year CAGR.
- DSP Small Cap Fund: Buys undervalued small-caps, exits after growth, ~21.5% 3-year CAGR.
- ICICI Prudential Smallcap Fund: Focuses on growth-oriented low-value stocks, ~20.8% 3-year CAGR.
- Nippon India Small Cap Fund: Actively trades small-cap growth stocks, ~24% 3-year CAGR.
- Kotak Small Cap Fund: Identifies undervalued stocks, sells at peak, ~22.5% 3-year CAGR.
- SBI Small Cap Fund: Invests in low-value small-caps with future upside, ~23.5% 3-year CAGR.
- Aditya Birla Sun Life Small Cap Fund: Cycles through undervalued stocks, ~21% 3-year CAGR.
- Axis Small Cap Fund: Targets growth in low-value stocks, sells post-appreciation, ~20.5% 3-year CAGR.
Best 5 Among Nifty-Relevant Funds
Among these, the best 5 that align with Nifty performance or have potential Nifty inclusion (based on growth trends and market cap growth) are:
- Nippon India Small Cap Fund: Leads with ~24% 3-year CAGR, strong small-cap growth aligning with Nifty Smallcap 100 trends.
- HDFC Small Cap Fund: ~23% 3-year CAGR, consistent performance with potential Nifty Smallcap exposure.
- SBI Small Cap Fund: ~23.5% 3-year CAGR, robust growth in undervalued stocks, Nifty-relevant.
- Bandhan Small Cap Fund: ~25% 3-year CAGR, high growth potential, increasingly tied to Nifty Smallcap indices.
- Motilal Oswal Midcap Fund: ~22% 3-year CAGR, bridges mid-cap growth with Nifty Midcap 100 relevance.
Analysis
These funds carry very high risk due to their focus on small and mid-cap stocks, which are volatile but offer significant growth potential. Nippon India Small Cap Fund is the best overall due to its top CAGR and active management, while Bandhan Small Cap Fund excels in recent performance. Their strategy of buying low, selling high, and reinvesting suits long-term investors (5-7 years) willing to weather market cycles. Check latest NAVs and portfolio turnover for confirmation, as this strategy depends on active fund management.