What are the top performing Small Cap funds?

Based on 1-year returns, the top performing Small Cap funds are TRUSTMF Small Cap Fund - Direct Plan with 21.06% return, Union Small Cap Fund - Direct Plan with 15.60% return, and Bank of India Small Cap Fund - Direct Plan with 12.78% return. The category average 1-year return is 3.51%.

Which Small Cap funds have given the best returns over 3 years?

Over a 3-year period, the best performing Small Cap funds are TRUSTMF Small Cap Fund - Direct Plan with a 29.72% CAGR, Union Small Cap Fund - Direct Plan with 25.76% CAGR, and Bank of India Small Cap Fund - Direct Plan with 23.62% CAGR. The category average 3-year return stands at 19.24% CAGR.

Which Small Cap funds have given the best returns over 5 years?

Over a 5-year period, the top Small Cap funds are TRUSTMF Small Cap Fund - Direct Plan with a 22.66% CAGR, Union Small Cap Fund - Direct Plan with 21.74% CAGR, and Bank of India Small Cap Fund - Direct Plan with 21.63% CAGR. The category average 5-year return is 18.27% CAGR.

Which are the best Small Cap funds for SIP investment?

Based on average 5-year rolling returns, the best Small Cap funds for SIP are Nippon India Small Cap Fund - Direct Plan with 5-year average rolling return of 24.90%, SBI Small Cap Fund - Direct Plan with 23.54%, and LIC MF Small Cap Fund - Direct Plan with 23.20%. You can start a SIP in Small Cap funds with as little as ₹99 per month.

What are the largest Small Cap mutual funds by assets?

The largest Small Cap funds by Assets Under Management (AUM) are Nippon India Small Cap Fund - Direct Plan with ₹ 72,673.00 crore, HDFC Small Cap Fund - Direct Plan with ₹ 38,168.20 crore, and SBI Small Cap Fund - Direct Plan with ₹ 37,140.80 crore. Together, there are 55 Small Cap funds available in India.

What is the minimum amount to invest in Small Cap funds?

You can start investing in Small Cap funds with a minimum SIP of ₹99 per month or a minimum lumpsum of ₹100. The minimum investment varies across fund houses — some funds allow even lower entry points.

How are Small Cap fund returns taxed?

Gains from Small Cap funds held for less than 12 months are taxed at 20% (Short-Term Capital Gains). Gains on units held for 12 months or more are taxed at 12.5% (Long-Term Capital Gains), with ₹1.25 lakh per year being exempt per financial year. Dividends (IDCW) are taxed at your applicable income tax slab rate.

Which Small Cap funds have the lowest expense ratio?

Among Small Cap funds, Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF FoF - Direct Plan has the lowest expense ratio at 0.09% (Direct Plan), followed by Kotak Nifty Smallcap 250 Index Fund - Direct Plan at 0.15%. Lower expense ratios directly improve your net returns over the long term.

How many Small Cap mutual funds are available in India?

There are currently 55 Small Cap mutual funds available in India across different fund houses. You can compare all 55 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Small Cap

Small Cap Funds

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

No. of schemes

Total AUM

₹ 4.05Lakh Cr

As on latest

Category Return (5Y)

18.27 %

CAGR

Benchmark

17.07%

NIFTY 500 TRI

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Small Cap	1.25 %	1.43 %	3.51 %	19.24 %	18.27 %	17.74 %	2.72 %
Benchmark	0.80 %	0.67 %	0.01 %	19.75 %	17.07 %	15.68 %	1.18 %

Top Small Cap Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
Nippon India Small Cap Fund - Direct PlanNAV: ₹192.93	72,673.00 Cr	3.91%	19.41%	21.63%	1.25%
HDFC Small Cap Fund - Direct PlanNAV: ₹151.13	38,168.20 Cr	-1.41%	14.81%	17.98%	0.73%
SBI Small Cap Fund - Direct PlanNAV: ₹192.32	37,140.80 Cr	-0.19%	13.26%	14.61%	0.74%
Quant Small Cap Fund - Direct PlanNAV: ₹291.16	30,373.70 Cr	6.78%	21.28%	21.74%	1.08%
Axis Small Cap Fund - Direct PlanNAV: ₹123.28	27,364.00 Cr	2.72%	16.74%	17.94%	0.61%
Bandhan Small Cap Fund - Direct PlanNAV: ₹52.43	25,345.80 Cr	5.67%	29.72%	22.66%	0.39%
DSP Small Cap Fund - Direct PlanNAV: ₹227.10	17,905.80 Cr	6.99%	19.89%	19.27%	0.78%
Kotak Small Cap Fund - Direct PlanNAV: ₹297.95	17,416.50 Cr	-1.33%	14.56%	15.03%	0.58%
HSBC Small Cap Fund - Direct PlanNAV: ₹91.00	16,393.60 Cr	2.60%	17.15%	19.63%	0.66%
Franklin India Small Cap Fund - Direct PlanNAV: ₹191.49	13,850.20 Cr	-0.66%	17.11%	18.86%	0.91%
Canara Robeco Small Cap Fund - Direct PlanNAV: ₹42.22	13,276.00 Cr	1.10%	15.00%	17.84%	0.55%
Tata Small Cap Fund - Direct PlanNAV: ₹40.28	11,329.80 Cr	-8.39%	12.79%	16.75%	0.48%
Invesco India Smallcap Fund - Direct PlanNAV: ₹47.81	11,038.20 Cr	7.04%	23.62%	21.42%	1.17%
ICICI Prudential Smallcap Fund - Direct PlanNAV: ₹96.11	8,741.30 Cr	0.22%	14.31%	17.04%	0.76%
Motilal Oswal Small Cap Fund - Direct PlanNAV: ₹15.41	6,206.07 Cr	9.72%	-	-	1.73%

About Small Cap Funds

What is it?

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

18.48%

18.28%

18.27%

18.18%

16.49%

Sectoral-Auto & Transportation

Thematic-Manufacturing

Small Cap

Mid Cap

Thematic-Business Cycle

Key Insights

Small Cap delivered 18.27% CAGR over the last 5 years.

It ranks #5 out of 24 categories based on 5Y performance.

Above the category average return of 15.13%.

4 categories outperform it, while 19 categories have lower returns.

Top performer: Thematic-PSU (24.47%).

Lowest performer: Sectoral-Technology (8.85%).

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 Plan

Fund Performance: Nippon India Small Cap Fund - Direct Plan has given 19.41% annualized returns in the past three years and 21.63% in the last 5 years. The Nippon India Small Cap Fund - Direct Plan 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 Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 72,673.00Cr

1Y Returns

3.91%

Expense Ratio

1.25%

HDFC Small Cap Fund - Direct Plan

Fund Performance: HDFC Small Cap Fund - Direct Plan has given 14.81% annualized returns in the past three years and 17.98% in the last 5 years. The HDFC Small Cap Fund - Direct Plan comes under the Equity category of HDFC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HDFC Small Cap Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 38,168.20Cr

1Y Returns

-1.41%

Expense Ratio

0.73%

SBI Small Cap Fund - Direct Plan

Fund Performance: SBI Small Cap Fund - Direct Plan has given 13.26% annualized returns in the past three years and 14.61% in the last 5 years. The SBI Small Cap Fund - Direct Plan comes under the Equity category of SBI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in SBI Small Cap Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 37,140.80Cr

1Y Returns

-0.19%

Expense Ratio

0.74%

Quant Small Cap Fund - Direct Plan

Fund Performance: Quant Small Cap Fund - Direct Plan has given 21.28% annualized returns in the past three years and 21.74% in the last 5 years. The Quant Small Cap Fund - Direct Plan 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 via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 30,373.70Cr

1Y Returns

6.78%

Expense Ratio

1.08%

Axis Small Cap Fund - Direct Plan

Fund Performance: Axis Small Cap Fund - Direct Plan has given 16.74% annualized returns in the past three years and 17.94% in the last 5 years. The Axis Small Cap Fund - Direct Plan comes under the Equity category of Axis Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Axis Small Cap Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 27,364.00Cr

1Y Returns

2.72%

Expense Ratio

0.61%

Bandhan Small Cap Fund - Direct Plan

Fund Performance: Bandhan Small Cap Fund - Direct Plan has given 29.72% annualized returns in the past three years and 22.66% in the last 5 years. The Bandhan Small Cap Fund - Direct Plan comes under the Equity category of Bandhan Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Small Cap Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 25,345.80Cr

1Y Returns

5.67%

Expense Ratio

0.39%

DSP Small Cap Fund - Direct Plan

Fund Performance: DSP Small Cap Fund - Direct Plan has given 19.89% annualized returns in the past three years and 19.27% in the last 5 years. The DSP Small Cap Fund - Direct Plan comes under the Equity category of DSP Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in DSP Small Cap Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 17,905.80Cr

1Y Returns

6.99%

Expense Ratio

0.78%

Kotak Small Cap Fund - Direct Plan

Fund Performance: Kotak Small Cap Fund - Direct Plan has given 14.56% annualized returns in the past three years and 15.03% in the last 5 years. The Kotak Small Cap Fund - Direct Plan 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 Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 17,416.50Cr

1Y Returns

-1.33%

Expense Ratio

0.58%

HSBC Small Cap Fund - Direct Plan

Fund Performance: HSBC Small Cap Fund - Direct Plan has given 17.15% annualized returns in the past three years and 19.63% in the last 5 years. The HSBC Small Cap Fund - Direct Plan comes under the Equity category of HSBC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HSBC Small Cap Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 16,393.60Cr

1Y Returns

2.60%

Expense Ratio

0.66%

Franklin India Small Cap Fund - Direct Plan

Fund Performance: Franklin India Small Cap Fund - Direct Plan has given 17.11% annualized returns in the past three years and 18.86% in the last 5 years. The Franklin India Small Cap Fund - Direct Plan 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 Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 13,850.20Cr

1Y Returns

-0.66%

Expense Ratio

0.91%

Canara Robeco Small Cap Fund - Direct Plan

Fund Performance: Canara Robeco Small Cap Fund - Direct Plan has given 15.00% annualized returns in the past three years and 17.84% in the last 5 years. The Canara Robeco Small Cap Fund - Direct Plan 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 Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 13,276.00Cr

1Y Returns

1.10%

Expense Ratio

0.55%

Tata Small Cap Fund - Direct Plan

Fund Performance: Tata Small Cap Fund - Direct Plan has given 12.79% annualized returns in the past three years and 16.75% in the last 5 years. The Tata Small Cap Fund - Direct Plan comes under the Equity category of Tata Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Tata Small Cap Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 11,329.80Cr

1Y Returns

-8.39%

Expense Ratio

0.48%

Invesco India Smallcap Fund - Direct Plan

Fund Performance: Invesco India Smallcap Fund - Direct Plan has given 23.62% annualized returns in the past three years and 21.42% in the last 5 years. The Invesco India Smallcap Fund - Direct Plan comes under the Equity category of Invesco Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Invesco India Smallcap Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 11,038.20Cr

1Y Returns

7.04%

Expense Ratio

1.17%

ICICI Prudential Smallcap Fund - Direct Plan

Fund Performance: ICICI Prudential Smallcap Fund - Direct Plan has given 14.31% annualized returns in the past three years and 17.04% in the last 5 years. The ICICI Prudential Smallcap Fund - Direct Plan comes under the Equity category of ICICI Prudential Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Smallcap Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 8,741.30Cr

1Y Returns

0.22%

Expense Ratio

0.76%

Motilal Oswal Small Cap Fund - Direct Plan

Fund Performance: The Motilal Oswal Small Cap Fund - Direct Plan 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 Plan via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 6,206.07Cr

1Y Returns

9.72%

Expense Ratio

1.73%