Edelweiss Small Cap Fund - Direct Plan - Growth

Edelweiss Small Cap Fund - Direct Plan - Growth ranks among the stronger performers in the Small Cap category, backed by a 4-star rating. Consistent 3-year performance combined with a strong rating makes this one of the more credible options in its space. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 88/100.

Cost: At 0.65%, the expense ratio is meaningfully cheaper — about 20% below the Small Cap category average of 0.81% (based on 173 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a modest Sharpe ratio of 0.18 — returns have only marginally compensated for the risk taken. Separately, annualised volatility of 15.9% is fairly typical for actively managed equity funds.

Who should invest: This fund is best suited to investors with a 7-10 year horizon who can stomach 30-40% drawdowns in a bad year in exchange for higher long-term growth potential. Given the Very High risk rating, this fund is not suited to short-term goals or investors who may need to exit within 2-3 years.