INCOME TAX25 Sept 2026
Active vs passive small-cap mutual funds: How wide is one-year return gap? Don't assume index schemes always lag | Mint
Over the past year, active small-cap funds easily beat index peers. The Nifty Smallcap 250 Total Return Index (TRI) gave 6.39%. The top active fund, Trust MF Small Cap Fund, gave 30.04%, and the best index fund, Edelweiss Nifty Smallcap 250 Index Fund, gave 6.13%. The gap was 23.91%. So if you hold small-cap funds, check what your fund actually owns before deciding.
Key Statutory Highlights
- The Nifty Smallcap 250 TRI, the key benchmark for small-cap funds, delivered 6.39% returns in the last one year.
- Trust MF Small Cap Fund led the active small-cap funds with 30.04% returns, while Edelweiss Nifty Smallcap 250 Index Fund led the passive funds with 6.13%.
- Active small-cap funds must invest at least 65% of assets in small-cap stocks, while index funds and ETFs must invest at least 95% in the underlying index.
Actionable Advice for Taxpayers / Founders:Before you add or switch a small-cap fund, check what stocks the fund actually holds and which index it tracks, then discuss with your adviser whether an active or passive approach fits your goal.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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