Based on 1-year returns, the top performing Small Cap funds are TRUSTMF Small Cap Fund Direct-Growth with 34.39% return, Bank of India Small Cap Fund Direct-Growth with 28.89% return, and Motilal Oswal Small Cap Fund Direct-Growth with 25.71% return. The category average 1-year return is 13.92%.
Best Small Cap Mutual Funds 2026
Smallcap equity mutual funds invest in relatively small companies. SEBI guidelines require small-cap funds to invest 65% of total funds in small-cap companies. The SEBI defines small-cap companies as those ranked from 251 and thereafter by market capitalization.
Total Schemes
51
No. of schemes
Total AUM
₹ 4.54Lakh Cr
As on latest
Category Return (5Y)
17.34 %
CAGR
Benchmark
16.17%
NIFTY 500 TRI
Category Returns (%)
| Period | 1M | 6M | 1Y | 3Y CAGR | 5Y CAGR | 10Y CAGR | YTD |
|---|---|---|---|---|---|---|---|
Small Cap | 1.68 % | 22.63 % | 13.92 % | 16.52 % | 17.34 % | 18.09 % | 14.82 % |
Benchmark | 0.77 % | 20.29 % | 9.76 % | 15.25 % | 16.17 % | 14.99 % | 11.28 % |
About Small Cap Funds
What is it?
Smallcap equity mutual funds invest in relatively small companies. SEBI guidelines require small-cap funds to invest 65% of total funds in small-cap companies. The SEBI defines small-cap companies as those ranked from 251 and thereafter by market capitalization.
Objective
The objective of the small-cap fund is to generate maximum returns by investing in small companies.
Suitability and opinion
Smallcap funds are suitable for high risk investors. Small-cap funds involve high risk. According to the SPIVA report, more than 80% of small-cap funds outperform their benchmark in the 5-year time horizon. So, the fund manager's ability has a huge influence on the performance of the funds. These funds have very high volatility and can show very high levels of drawdowns during a market downturn. We feel one must check the fund performance before investing in a small-cap fund. This category can be a good choice for aggressive investors with a time horizon of at least 5 years.
Small Cap vs Other Categories
5Y CAGR Return Comparison
Key Insights
Small Cap delivered 17.34% CAGR over the last 5 years.
It ranks #4 out of 28 categories based on 5Y performance.
Above the category average return of 13.74%.
3 categories outperform it, while 24 categories have lower returns.
Top performer: Sectoral-Auto & Transportation (22.85%).
Lowest performer: Sectoral-Technology (4.94%).
Let's have a closer look
Now let us jump and check about these top 15 mutual fund schemes.
Nippon India Small Cap Fund Direct-Growth
Fund Performance: Nippon India Small Cap Fund Direct-Growth has given 15.16% annualized returns in the past three years and 19.60% in the last 5 years. The Nippon India Small Cap Fund Direct-Growth comes under the Equity category of Nippon India Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Small Cap Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 78,956.80Cr
1Y Returns
11.58%
Expense Ratio
0.69%
HDFC Small Cap Fund Direct-Growth
Fund Performance: HDFC Small Cap Fund Direct-Growth has given 10.77% annualized returns in the past three years and 15.54% in the last 5 years. The HDFC Small Cap Fund Direct-Growth comes under the Equity category of HDFC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in HDFC Small Cap Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 100.00
AUM
₹ 41,679.00Cr
1Y Returns
-0.33%
Expense Ratio
0.75%
SBI Small Cap Fund Direct-Growth
Fund Performance: SBI Small Cap Fund Direct-Growth has given 12.12% annualized returns in the past three years and 15.08% in the last 5 years. The SBI Small Cap Fund Direct-Growth comes under the Equity category of SBI Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in SBI Small Cap Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 39,954.70Cr
1Y Returns
9.23%
Expense Ratio
0.79%
Quant Small Cap Fund Direct Plan-Growth
Fund Performance: Quant Small Cap Fund Direct Plan-Growth has given 17.67% annualized returns in the past three years and 20.27% in the last 5 years. The Quant Small Cap Fund Direct Plan-Growth comes under the Equity category of Quant Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Quant Small Cap Fund Direct Plan-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 34,068.90Cr
1Y Returns
17.89%
Expense Ratio
0.93%
Bandhan Small Cap Fund Direct-Growth
Fund Performance: Bandhan Small Cap Fund Direct-Growth has given 25.19% annualized returns in the past three years and 20.42% in the last 5 years. The Bandhan Small Cap Fund Direct-Growth comes under the Equity category of Bandhan Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Bandhan Small Cap Fund Direct-Growth via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 1,000.00
AUM
₹ 31,103.00Cr
1Y Returns
15.02%
Expense Ratio
0.58%
Axis Small Cap Fund Direct-Growth
Fund Performance: Axis Small Cap Fund Direct-Growth has given 15.83% annualized returns in the past three years and 16.69% in the last 5 years. The Axis Small Cap Fund Direct-Growth comes under the Equity category of Axis Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Axis Small Cap Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 100.00
AUM
₹ 30,088.60Cr
1Y Returns
12.77%
Expense Ratio
0.71%
DSP Small Cap Direct Plan-Growth
Fund Performance: DSP Small Cap Direct Plan-Growth has given 17.43% annualized returns in the past three years and 19.11% in the last 5 years. The DSP Small Cap Direct Plan-Growth comes under the Equity category of DSP Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in DSP Small Cap Direct Plan-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 100.00
AUM
₹ 20,220.80Cr
1Y Returns
19.61%
Expense Ratio
0.81%
Kotak Small Cap Fund Direct-Growth
Fund Performance: Kotak Small Cap Fund Direct-Growth has given 12.06% annualized returns in the past three years and 13.52% in the last 5 years. The Kotak Small Cap Fund Direct-Growth comes under the Equity category of Kotak Mahindra Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Kotak Small Cap Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 100.00
AUM
₹ 18,932.80Cr
1Y Returns
6.76%
Expense Ratio
0.64%
HSBC Small Cap Fund Direct-Growth
Fund Performance: HSBC Small Cap Fund Direct-Growth has given 14.86% annualized returns in the past three years and 18.48% in the last 5 years. The HSBC Small Cap Fund Direct-Growth comes under the Equity category of HSBC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in HSBC Small Cap Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 17,783.70Cr
1Y Returns
16.44%
Expense Ratio
0.77%
Invesco India Small Cap Fund Direct-Growth
Fund Performance: Invesco India Small Cap Fund Direct-Growth has given 23.00% annualized returns in the past three years and 20.62% in the last 5 years. The Invesco India Small Cap Fund Direct-Growth comes under the Equity category of Invesco Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Invesco India Small Cap Fund Direct-Growth via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 100.00
AUM
₹ 14,474.80Cr
1Y Returns
18.10%
Expense Ratio
0.63%
Franklin India Small Cap Fund Direct-Growth
Fund Performance: Franklin India Small Cap Fund Direct-Growth has given 13.11% annualized returns in the past three years and 16.67% in the last 5 years. The Franklin India Small Cap Fund Direct-Growth comes under the Equity category of Franklin Templeton Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Franklin India Small Cap Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 14,466.50Cr
1Y Returns
8.20%
Expense Ratio
1.07%
Canara Robeco Small Cap Fund Direct-Growth
Fund Performance: Canara Robeco Small Cap Fund Direct-Growth has given 13.11% annualized returns in the past three years and 15.82% in the last 5 years. The Canara Robeco Small Cap Fund Direct-Growth comes under the Equity category of Canara Robeco Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Canara Robeco Small Cap Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 14,230.90Cr
1Y Returns
9.27%
Expense Ratio
0.67%
Tata Small Cap Fund Direct-Growth
Fund Performance: Tata Small Cap Fund Direct-Growth has given 11.96% annualized returns in the past three years and 16.23% in the last 5 years. The Tata Small Cap Fund Direct-Growth comes under the Equity category of Tata Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Tata Small Cap Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 12,695.80Cr
1Y Returns
0.48%
Expense Ratio
0.51%
ICICI Prudential Small Cap Fund Direct-Growth
Fund Performance: ICICI Prudential Small Cap Fund Direct-Growth has given 10.96% annualized returns in the past three years and 14.92% in the last 5 years. The ICICI Prudential Small Cap Fund Direct-Growth comes under the Equity category of ICICI Prudential Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Small Cap Fund Direct-Growth via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.
Min Investment Amt
₹ 5,000.00
AUM
₹ 9,533.38Cr
1Y Returns
4.66%
Expense Ratio
1.18%
Motilal Oswal Small Cap Fund Direct-Growth
Fund Performance: The Motilal Oswal Small Cap Fund Direct-Growth comes under the Equity category of Motilal Oswal Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Small Cap Fund Direct-Growth via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.
Min Investment Amt
₹ 500.00
AUM
₹ 7,604.53Cr
1Y Returns
25.71%
Expense Ratio
0.85%
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