equity Fund

Small Cap Mutual Funds

Invest in companies ranked beyond 250th by market cap for maximum growth potential.

Avg. Return (5Y)

22.15%

No. of Funds

Risk Level

Very High

Ideal Horizon

7+ years

Top Small Cap Mutual Funds Sorted by Returns

Scheme

Quant Small Cap Fund

Quant MF

Expense: 0.64%

1Y: 18.2%

3Y: 28.5%

5Y: 26.1%

Nippon India Small Cap Fund

Nippon India MF

Expense: 0.73%

1Y: 16.9%

3Y: 26.8%

5Y: 24.7%

HDFC Small Cap Fund

HDFC MF

Expense: 0.68%

1Y: 15.4%

3Y: 25.1%

5Y: 23.2%

Axis Small Cap Fund

Axis MF

Expense: 0.56%

1Y: 14.8%

3Y: 24.3%

5Y: 22.5%

SBI Small Cap Fund

SBI MF

Expense: 0.62%

1Y: 13.5%

3Y: 23.7%

5Y: 21.8%

* Returns are annualized and based on historical data. Past performance does not guarantee future results. Min. SIP: ₹500.

What is a Small Cap Fund?

Small-cap mutual funds invest in companies ranked below 250th by market capitalization. These are emerging businesses with significant room for expansion. While they carry higher risk, they also offer the potential for multi-bagger returns as these companies scale.

Key Advantages

Highest growth potential among equity fund categories
Early access to future mid-cap and large-cap companies
Power of compounding works best over long durations
Portfolio diversification across niche sectors

How It Works

Small Cap funds must invest at least 65% of their corpus in stocks ranked beyond 250 by market cap. Fund managers conduct deep research to identify hidden gems with strong fundamentals, scalable business models, and capable management teams.