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Small Cap Mutual Funds

Find here some best Small Cap fund to invest

  • Annual Returns 15.87%
  • Average Risk Very High
  • Total Funds 28

What is Small Cap Mutual Fund?

Small Cap Mutual Funds are among the best category of equity funds that focuses on small companies in India. These funds primarily target early-stage growth companies with a market capitalisation of 1000 to 15000 Crore. Small cap funds provide very high returns than large cap funds but also have high volatility in the short term. So investors are suggested to have high-risk tolerance and invest for a long-term horizon of at least 5 years.

  • The CAGR of small cap mutual funds ranges between 15-18%, with a balanced risk-reward ratio.
  • The small cap funds have a highly volatile nature.
  • The best recommended time for minimum investment is 2-3 years.
More

Top Performing Small Cap Funds in India for High Returns

AMC List

  • Kotak
  • Aditya Birla Sun Life
  • ICICI
  • Tata
  • HDFC
  • SBI
  • UTI
  • Nippon
  • Sundaram
  • Canara
  • Invesco
  • Axis
  • Baroda BNP Paribas
  • DSP
  • EDELWEISS
  • Franklin
  • HSBC
  • JM Financial
  • LIC
  • Mirae Asset
  • Motilal Oswal
  • Mahindra
  • PGIM
  • WOC
  • Bandhan
  • 360 One
  • Bajaj Finserv
  • Quant
  • Parag Parikh
  • ITI
  • Bank of India
  • Groww

Minimum SIP Amt.

  • ₹100 - ₹500
  • ₹500 - ₹1000
  • ₹1000 - ₹5000

Fund Option

  • Growth
  • Dividend
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Snapshot

Returns

Risk

Information

NAV Details

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1D NAV Changed -0.77%
SIP 3Y P.a. 11.08%
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1D NAV Changed -1.08%
SIP 3Y P.a. 14.9%
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1D NAV Changed -1.22%
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1D NAV Changed -1.23%
SIP 3Y P.a. 18.64%
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1D NAV Changed -1.33%
SIP 3Y P.a. 14.11%
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1D NAV Changed -1.36%
SIP 3Y P.a. 16.99%
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1D NAV Changed -1.37%
SIP 3Y P.a. 18.25%
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1D NAV Changed -1.39%
SIP 3Y P.a. 10.94%
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1D NAV Changed -1.42%
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1D NAV Changed -1.43%
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1D NAV Changed -1.55%
SIP 3Y P.a. 12.32%
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1D NAV Changed -1.56%
SIP 3Y P.a. 16.51%
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1D NAV Changed -1.57%
SIP 3Y P.a. 14.88%
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1D NAV Changed -1.59%
SIP 3Y P.a. 27.66%
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1D NAV Changed -1.64%
SIP 3Y P.a. 11.98%
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1D NAV Changed -1.68%
SIP 3Y P.a. 9.08%
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1D NAV Changed -1.68%
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1D NAV Changed -1.72%
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1D NAV Changed -1.75%
SIP 3Y P.a. 21.77%
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1D NAV Changed -1.82%
SIP 3Y P.a. 12.2%
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1 Week -2.58%
1 Month -6.63%
3 Months -16.48%
6 Months -18.79%
1 Year -2%
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1 Month -6.31%
3 Months -14.18%
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Annual Rt 19.1%
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Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 1.59%
Fund Manager Rama Iyer Srinivasan
Launch Date 09-Sep 2009
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.61%
Fund Manager Tejas Sheth
Launch Date 29-Nov 2013
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Min SIP ₹5000
Min Lumpsum ₹5000
Expense Ratio -
Fund Manager Varun Goel
Launch Date 31-Jan 2025
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Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 1.6%
Fund Manager Sanjeev Sharma
Launch Date 30-Oct 1996
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.97%
Fund Manager Ravi Gopalakrishnan
Launch Date 15-Feb 2005
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 1.76%
Fund Manager R Janakiraman
Launch Date 13-Jan 2006
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 1.45%
Fund Manager Samir Rachh
Launch Date 16-Sep 2010
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Min SIP ₹100
Min Lumpsum ₹1000
Expense Ratio 1.89%
Fund Manager Vishal Gajwani
Launch Date 31-May 2007
Invest
Min SIP ₹500
Min Lumpsum ₹1000
Expense Ratio 1.85%
Fund Manager Abhinav Khandelwal
Launch Date 12-Dec 2022
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Min SIP ₹100
Min Lumpsum ₹5000
Expense Ratio 2.32%
Fund Manager Asit Bhandarkar
Launch Date 24-Jun 2024
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Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 1.81%
Fund Manager Anish Tawakley
Launch Date 18-Oct 2007
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Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.57%
Fund Manager Chirag Setalvad
Launch Date 03-Apr 2008
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Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 1.9%
Fund Manager Ankit Agarwal
Launch Date 22-Dec 2020
Invest
Min SIP ₹100
Min Lumpsum ₹1000
Expense Ratio 1.72%
Fund Manager Manish Gunwani
Launch Date 26-Feb 2020
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.65%
Fund Manager Arjun Khanna
Launch Date 24-Feb 2005
Invest
Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 2.07%
Fund Manager Puneet Pal
Launch Date 29-Jul 2021
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 0.73%
Fund Manager Devender Singhal
Launch Date 30-Jan 2025
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 2.19%
Fund Manager Shiv Chanani
Launch Date 27-Oct 2023
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 1.95%
Fund Manager Dhimant Shah
Launch Date 14-Feb 2020
Invest
Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 1.7%
Fund Manager Pranav Gokhale
Launch Date 15-Feb 2019
Invest
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Comparison of Top Small Cap Funds

Small Cap Funds Return Calculator

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  • Invested Amount ₹43,855
  • Interest Earned ₹6,145

How Do Small Cap Mutual Funds Work?

According to SEBI guidelines, small cap mutual funds need to put at least 65% of their money into small companies. Among the thousands of listed companies, small caps are usually ranked beyond 250 and have a market value between 1000 to 15000 crore.

These companies provide investors with higher returns over a long time, but small cap funds also come with more risks and can be unpredictable, so the fund manager tries to control risk by diversifying the portfolio between 50-70 stocks. Also, the remaining 35% of money is allocated as per market conditions in tough situations it is kept in large or mid cap stocks and more money goes into small cap stocks when see the good opportunities in the market.

Best Small Cap Mutual Funds Advantages

Investing in top small cap mutual funds has its own advantages compared to other types of Mutual Funds. Here are some of the benefits:

  1. Early Investment Opportunities in Emerging Companies

    Small cap funds provide investors with the chance to invest early in emerging companies that are ready for development. These small companies are often under-researched and undervalued but have a high potential to become industry leaders, fund managers & their teams identify these companies at a very early stage.

  1. High Growth Potential

    Smaller companies with the right business model and strong management teams often grow faster than larger ones, which means they are offering the chance for substantial returns in the long run. When these companies perform well in business, their stock prices can rise quickly.

  1. Highest Returns Equity Funds

    Small cap funds offer some higher returns within their equity category. Even though they can be riskier because they invest in smaller companies, but these equity stocks have the potential to generate higher returns sometimes more than large and mid cap funds.

  1. Access to 50+ Best Companies in a Single Portfolio

    Firstly, it offers diversification, spreading the risk across different companies and reducing the impact of any single company's poor performance. The top small cap mutual funds carefully select high-potential companies for investment, managed by experienced professionals.

Moving on, let’s get you a list of the best small cap mutual funds 2025 to begin an early systematic investment plan online.

Top 5 Small Cap Mutual Funds To Invest in 2025

Here are the 5 Best Small Cap Mutual Funds 2025 to begin your SIP (systematic investment plan) with:

  1. Bandhan Small Cap Fund

    After being launched on February 1st, 2020, this Bandhan Small Cap Fund has made long strides by delivering 43.30% returns in just one year. Although being a newcomer in the small cap mutual funds category, it manages a robust AUM (Asset Under Management) at Rs.9,236 Cr as of 31.01.25. It is a good investment option for 2-3 years, starting your SIP with just Rs.1000 on today's date.

  1. Invesco India Small Cap Fund

    The Invesco India Small Cap Fund has given an impressive return of 29.73% in 5 years, supposedly beating its benchmark at 20.62%. This small cap mutual fund is managing an AUM of Rs.5,904 Crores as of 31.01.25. Investing in this fund will be a smart decision if driving benefits from the fast-growing business is what you need in your portfolio.

  1. Tata Small Cap Fund

    Starting the year with a high reward-giving small cap fund, the Tata Small Cap Fund has delivered 32.74% returns in the last 3 years. Apart from the Tata Mutual Fund legacy, it manages a strong AUM of 8,883 Cr as of 31.01.25. It is a good investment choice if you are willing to invest a premium amount for a higher return.

  1. Quant Small Cap Fund

    The Quant Small Cap Fund has done well in recent years, with a strong return of 41% over the last 3 years, outstandingly beating its benchmark return of 25.66%. It is managed by Quant Mutual Fund and currently has an AUM of Rs.102 Crores. This small cap mutual fund keeps its major investment in smaller companies that have the potential to grow, making it a good choice for investors who are okay with taking some risk for the chance of higher returns in the future.

  1. Mahindra Manulife Small Cap Fund

    The Mahindra Manulife Small Cap Fund has also performed well, with a return of about 35% over the last 3 years. This fund, managed by Mahindra Manulife Investment Managers, has an AUM of Rs.3540 Crores as of 31.01.25. It invests in small-sized companies that are expected to grow, which could provide good returns for investors who are willing to take on a bit more risk for the potential of higher profits down the road.

Pro Tip: Fast track your investments using the SIP Calculator and get your estimated returns in minutes.

How to Invest in Small Cap Mutual Funds via MySIPonline?

Here is an easy way to start your investment with MySIPonline:

  • Step 1:Verify your KYC (Know Your Customer) details.
  • Step 2:Fill out personal & banking information.
  • Step 3:Choose from the best small cap funds or seek assistance from our expert advisors.
  • Step 4:Decide whether to invest through SIP or Lumpsum.
  • Step 5:Place funds in the cart and complete online payment via UPI or Net Banking.
  • Step 6:Track investment regularly on our dashboard with detailed analytical reports.

Pro Tip: level up your portfolio with Step Up SIP Calculator for maximum growth.

Should I Invest in Small Cap Mutual Funds in 2025?

The following points will help investors identify if the top small cap mutual funds are the right match for them in the new financial year:

  1. Investors with Long Term Investing Goals

    Small cap funds are ideal for investors with long-term goals. These funds focus on small companies with strong growth potential, making them suitable for patient investors who are ready to keep their assets for five years or more to maximize growth chances.

  1. Investors Having High Risk & High Returns Investing Style

    The small cap mutual funds are a good match for investors who are okay with taking high risks in exchange for the possibility of making high returns. These investors don't mind when prices go up and down a lot because they believe they can make big profits in the long run.

  1. Growth Focused Investor

    Small cap funds invest in small companies that are in their initial stage but have the potential to grow a lot while making them attractive to investors who are seeking capital appreciation.

In short, investments in the best small cap funds will take you one step closer to achieving your desired goals.

Is it Safe to Invest in Small Cap Mutual Funds for Long Term?

Before investing in the small cap mutual funds, it is important to understand the risks that are involved:  

  1. High Volatility

    As small cap funds largely invest their portfolio in small cap stocks that have very low traded volume. Therefore, any changing factors like market sentiments, company performance, economic condition creates high buying volume or high selling volume that fluctuate stock prices very rapidly. That is why small cap stocks have higher volatility than large cap-stocks. Hence, the small cap fund NAV (Net Asset Value) price always shows the same kind of volatility.

  1. Higher Drawdown or Fall

    During every market crash or correction small cap stocks tend to fall very sharply. So investing can cause more significant declines compared to larger companies. Investors should be prepared for potential losses during these periods.

  1. Liquidity Risk

    Investing in small cap funds carries liquidity risk, where buying or selling shares can affect the price of your mutual funds investment due to lower trading volumes and fewer market participants. This can result in bigger differences between buying and selling prices and make it harder to buy or sell shares, especially when the market is unpredictable.

Pro Tip: Smartly plan your tax via the Tax Calculator within seconds.

Frequently Asked Questions

What Is Small Cap Fund & How Do They Work?

Small cap funds invest in companies with a smaller market size (below Rs.5,000 crore). They aim for high growth, but their stock prices can be more volatile.

How Risky Are Small Cap Mutual Funds Compared To Large Cap Funds?

Small cap funds are riskier than Large Cap Funds because they invest in smaller, less established companies. However, they have the potential for higher returns in the long term.

Which Small Cap Mutual Fund Has Given The Highest Returns?

Past performance varies, but some small cap funds with high returns over the years include:

Fund Name 3 Yrs Returns (%) Consistency
Bandhan Small Cap Fund 32.26 100
NIFTY Smallcap 250 TRI 33.53 100
Invesco India Small Cap 30.41 100
NIFTY Smallcap 250 TRI 26.68 99.83
Tata Small Cap Fund 32.74 100
NIFTY Smallcap 250 TRI 27.1 100
Edelweiss Small Cap 33.85 100
NIFTY Smallcap 250 TRI 27.74 100
Quant Small Cap 41 97.16
NIFTY Smallcap 250 TRI 25.66 85.43

*As on 20-02-2025

What Are The Tax Implications Of Small Cap Mutual Fund Investments?

Small cap funds are taxed as equity funds. Long-term capital gains (LTCG) over Rs.1 lakh are taxed at 10%, while short-term capital gains (STCG) are taxed at 15%.

Which Is The Best Small Cap Mutual Fund In India?

The best small cap mutual fund depends on your investment goals and risk tolerance. Here is a list of the best small cap mutual funds to begin your SIP:

Scheme Name Launch Date AUM (Cr as of 31.01.25)
Bandhan Small Cap Fund 01.02.2020 9,236
Edelweiss Small Cap Fund 01.02.2019 4,170
Quant Small Cap Fund 24.11.1996 24,812

*As on 20-02-2025

 

Is It Good To Invest In Small Cap Funds For Long Term?

Yes, small cap funds are suitable for long-term investors who can handle short-term volatility. Over time, they have the potential to deliver higher returns compared to large caps.

How Do I Compare The Top Small Cap Mutual Funds?

Compare funds based on their past performance, NAV, expense ratio, portfolio holdings and risk factors. At MySIPonline you get expert analysis between schemes.

Should I Invest In New Small Cap Mutual Funds In 2025?

New small cap funds (New Fund Offer) may offer growth potential however, comes with higher risks. It's important to research the fund's strategy, portfolio and manager before investing.

Top Videos and Blogs on Small Cap Mutual Funds

Videos

Blogs

https://www.youtube.com/watch?v=A6DFMI_BRDU&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj Best Small Cap Mutual Funds 2024 | 2-3X Returns in 5 Yrs | Comparison of Top 5 Small Cap Funds https://www.youtube.com/watch?v=HdXEp5aaaUs&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj Market Crash 2024 | Top 3 Reasons - Inflation & Interest Rate | Small Cap Bubble | FII https://www.youtube.com/watch?v=PB4vi9c9j3A&list=PL0iuspj5vV4XK0joFYBx0RbOldMM16B49 Best Small Cap Mutual Funds 2024 Research | Small cap mutual funds for long term https://www.youtube.com/watch?v=UIWFdkGBWL0&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj Axis Small Cap Fund Direct Growth | Detailed Analysis for Investment or Selling Decisions by TMFT https://www.youtube.com/watch?v=SiHdBBksmaM&list=PL0iuspj5vV4VHqnF4pQ-Q3C_8CHfBTeAg SIP Mutual Funds Returns in 2021| Top & Bottom - Large Cap, Mid cap & Small Cap Sip Funds https://www.youtube.com/watch?v=WxS15vxSW5g&list=PL0iuspj5vV4XK0joFYBx0RbOldMM16B49 Top 5 Small Cap Funds 2021 | Best Mutual Funds in 2021 | High Returns Mutual Funds 2021 https://www.youtube.com/watch?v=Iq2xBIFGHxA&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj What are Small Cap Funds? | New SEBI Categorization 2018 | Who can Invest? | Past Performance https://www.youtube.com/watch?v=h85pd3X9sA4&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj Small Cap Mutual Funds - Analysis & Performance | Expert Analysis on Small Cap Category 2018 https://www.youtube.com/watch?v=LoO3L6jbYB4&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj Top 5 Small Cap Mutual Funds | Best Recommended Small Cap Funds 2018 -19 https://www.youtube.com/watch?v=MoL15f-a2hQ&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj SBI Small Cap Fund 2018 | Mutual fund Review | SBI Small Cap Mutual Fund Analysis & Performance https://www.youtube.com/watch?v=NSf5hl1ehak&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj Nippon India Small Cap Fund | Mutual Fund Analysis | Top Performing Mutual Fund https://www.youtube.com/watch?v=R1f6uqri42Q&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj HDFC Small Cap Fund Review 2018 | HDFC Small Cap Mutual Fund Analysis & Performance https://www.youtube.com/watch?v=hAnqAa9ZMNY&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj Canara Robeco Small Cap Fund Review 2021 | Best Small Cap fund | Top Performing Mutual Fund 2021 https://www.youtube.com/watch?v=97q4-T4azVc&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj Quant Small Cap Fund Review | 302% Returns* | Quant Mutual Fund | Best Analysis https://www.youtube.com/watch?v=0iQSeiylVec&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj L&T Emerging Businesses Fund Review 2022 | High Return Small Cap Fund | Rise, Fall & Comeback Story https://www.youtube.com/watch?v=1-NTeiHJB40&list=PL0iuspj5vV4XrAPhyeyvNNYaVkDEIonGj Best Small Cap Mutual Fund 2023 |Compare SBI small cap vs Nippon Small Cap vs Quant small cap & More https://www.youtube.com/watch?v=WQ5xD-sPcVE&list=PL0iuspj5vV4UDJ1y5Y0tPdFttqQqcAZ-x Large Cap vs Mid Cap vs Small Cap Mutual Funds | Performance of Mutual Funds
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