MUMBAI: With 72 per cent return to investors, S&P BSESmallCap index has outperformed the sensex and large-cap indices in the three-year period ended May 31.
While the small-cap index of the BSE has given a return of 72.11 per cent, S&P BSE SmallCap Select index, which is a measure of the performance of the 60 most liquid small-cap companies, has generated a return of 66.86 per cent, as per data compiled by S&P Dow Jones Indices for a period of three years ended May 31, 2017.
On the other hand, blue-chip index sensex and S&P BSE LargeCap companies have shelled out a return of 34.24 per cent and 38.56 per cent, respectively, in the period under review.
“We see that in the three-year period ending May 31, 2017, the absolute returns of the S&P BSE SmallCap and S&P BSE SmallCapSelect were significantly higher than those of the S&P BSE LargeCap and S&P BSE sensex,” S&P BSE Indices Associate Director (product management) Ved Malla told PTI.
“This significant outperformance by small-cap stocks has resulted in more market participants looking at the small-cap segment,” he added.
Small-cap indices have also outperformed the large cap companies over one year period ended May 31, delivering a return of 36.22 per cent. S&P BSE SmallCap Select generated a return of 30.89 per cent for its investors.
Comparatively, large-cap has given a return of 20.78 per cent, while sensex companies shelled out 18.22 per cent return for the one-year period.
Similarly, investors received a return of 36.10 per cent and 26.03 per cent from S&P BSE SmallCap and Smallcap Select indices, respectively, over two-year period ended May 31, 2017.
This is much higher returns from BSE LargeCap (17.51 per cent) and benchmark BSE sensex (15.14 per cent).