List of Top Small Cap Mutual Funds in India 2026
Small cap mutual funds in India invest in companies ranked 251st and beyond by market capitalisation, targeting high-growth businesses before they enter the mainstream. The category's AUM has surged from around ₹90,000 cr. in 2020 to over ₹4.34 lakh cr. by September 2025, reflecting growing investor appetite. Here is the complete list of small cap mutual funds in India with live NAV, AUM, expense ratio, 1Y, 3Y, 5Y returns and more.
Top Small Cap Mutual Funds - Best Funds, Benefits & Risks
Showing 1 - 20 of 36 results
last updated at 11:00 PM IST
| NameMFs (36)↓ | ↓Sub CategorySub Category↓ | ↓PlanPlan↓ | ↓AUMAUM↓ | ↓NAVNAV↓ | ↓Absolute Returns - 3MAbsolute Ret. - 3M↓ | ↓Absolute Returns - 1YAbsolute Ret. - 1Y↓ | ↓CAGR 3YCAGR 3Y↓ | ↓Expense RatioExpense Ratio↓ | ↓Exit LoadExit Load↓ | ↓VolatilityVolatility↓ | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1. | Nippon India Small Cap Fund Nippon India Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 78,407.03 78,407.03 | 200.46 200.46 | 5.86 5.86 | 3.10 3.10 | 16.95 16.95 | 0.73 0.73 | 1.00 1.00 | 15.25 15.25 | |
| 2. | HDFC Small Cap Fund HDFC Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 40,416.80 40,416.80 | 157.65 157.65 | 5.19 5.19 | -3.43 -3.43 | 12.69 12.69 | 0.77 0.77 | 1.00 1.00 | 15.25 15.25 | |
| 3. | SBI Small Cap Fund SBI Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 40,156.66 40,156.66 | 204.85 204.85 | 7.23 7.23 | 1.05 1.05 | 12.68 12.68 | 0.79 0.79 | 1.00 1.00 | 14.13 14.13 | |
| 4. | Quant Small Cap Fund Quant Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 32,739.05 32,739.05 | 306.24 306.24 | 12.13 12.13 | 7.98 7.98 | 19.35 19.35 | 0.81 0.81 | 1.00 1.00 | 15.68 15.68 | |
| 5. | Bandhan Small Cap Fund Bandhan Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 28,466.18 28,466.18 | 55.11 55.11 | 6.80 6.80 | 5.60 5.60 | 27.27 27.27 | 0.63 0.63 | 1.00 1.00 | 16.05 16.05 | |
| 6. | Axis Small Cap Fund Axis Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 27,438.53 27,438.53 | 130.59 130.59 | 7.96 7.96 | 3.90 3.90 | 16.37 16.37 | 0.74 0.74 | 1.00 1.00 | 14.72 14.72 | |
| 7. | DSP Small Cap Fund DSP Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 19,634.90 19,634.90 | 243.53 243.53 | 9.83 9.83 | 9.24 9.24 | 17.85 17.85 | 0.82 0.82 | 1.00 1.00 | 16.19 16.19 | |
| 8. | Kotak Small Cap Fund Kotak Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 18,690.79 18,690.79 | 313.19 313.19 | 6.66 6.66 | -0.81 -0.81 | 13.20 13.20 | 0.65 0.65 | 1.00 1.00 | 15.50 15.50 | |
| 9. | HSBC Small Cap Fund HSBC Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 17,830.20 17,830.20 | 95.40 95.40 | 8.71 8.71 | 2.12 2.12 | 15.46 15.46 | 0.76 0.76 | 1.00 1.00 | 17.55 17.55 | |
| 10. | Franklin India Small Cap Fund Franklin India Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 14,336.42 14,336.42 | 199.72 199.72 | 4.70 4.70 | -0.06 -0.06 | 15.48 15.48 | 1.05 1.05 | 1.00 1.00 | 16.38 16.38 | |
| 11. | Canara Rob Small Cap Fund Canara Rob Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 13,967.05 13,967.05 | 44.39 44.39 | 5.77 5.77 | 0.68 0.68 | 13.66 13.66 | 0.65 0.65 | 1.00 1.00 | 15.72 15.72 | |
| 12. | Invesco India Smallcap Fund Invesco India Smallcap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 13,384.88 13,384.88 | 51.67 51.67 | 10.93 10.93 | 8.39 8.39 | 23.11 23.11 | 0.67 0.67 | 1.00 1.00 | 16.97 16.97 | |
| 13. | Tata Small Cap Fund Tata Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 12,528.86 12,528.86 | 43.05 43.05 | 10.26 10.26 | -7.46 -7.46 | 12.75 12.75 | 0.51 0.51 | 0.50 0.50 | 16.91 16.91 | |
| 14. | ICICI Pru Smallcap Fund ICICI Pru Smallcap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 9,378.80 9,378.80 | 99.35 99.35 | 4.52 4.52 | -0.75 -0.75 | 12.56 12.56 | 1.14 1.14 | 1.00 1.00 | 14.17 14.17 | |
| 15. | Motilal Oswal Small Cap Fund Motilal Oswal Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 7,179.39 7,179.39 | 16.77 16.77 | 14.90 14.90 | 14.69 14.69 | - - | 0.82 0.82 | 1.00 1.00 | 16.92 16.92 | |
| 16. | Edelweiss Small Cap Fund Edelweiss Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 6,579.72 6,579.72 | 51.80 51.80 | 7.52 7.52 | 3.89 3.89 | 17.28 17.28 | 0.62 0.62 | 1.00 1.00 | 15.73 15.73 | |
| 17. | Aditya Birla SL Small Cap Fund Aditya Birla SL Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 5,731.31 5,731.31 | 108.66 108.66 | 8.64 8.64 | 8.58 8.58 | 16.27 16.27 | 1.03 1.03 | 1.00 1.00 | 16.54 16.54 | |
| 18. | UTI Small Cap Fund UTI Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 4,970.44 4,970.44 | 29.16 29.16 | 6.79 6.79 | 2.00 2.00 | 15.83 15.83 | 0.87 0.87 | 1.00 1.00 | 16.09 16.09 | |
| 19. | Mahindra Manulife Small Cap Fund Mahindra Manulife Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 4,930.36 4,930.36 | 22.43 22.43 | 8.67 8.67 | 9.42 9.42 | 22.02 22.02 | 0.88 0.88 | 1.00 1.00 | 16.63 16.63 | |
| 20. | Mirae Asset Small Cap Fund Mirae Asset Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 4,842.22 4,842.22 | 12.31 12.31 | 5.86 5.86 | 5.73 5.73 | - - | 0.73 0.73 | 1.00 1.00 | 15.44 15.44 |
Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.
Selection criteria: Plan: Growth, Category: Equity, Sub-Category: Small Cap Fund | AUM: Sorted from Highest to Lowest
Selection criteria: Plan: Growth, Category: Equity, Sub-Category: Small Cap Fund | AUM: Sorted from Highest to Lowest
What are Small Cap Mutual Funds?
Small cap mutual funds are open-ended equity mutual fund schemes that invest at least 65% of their total assets in small cap companies, as defined by SEBI. The fund manager has discretion in selecting which small cap stocks to hold within this minimum allocation and may also hold some mid-cap or large-cap stocks with the remaining portion of the portfolio.
The SEBI definition of a small cap company is any company ranked 251st or lower by full market capitalisation among all companies listed on Indian stock exchanges. As of 2026, the 251st-ranked company on NSE has a market capitalisation of approximately ₹5,000 cr, meaning small cap funds primarily invest in companies with market caps below this threshold.
Overview of Best Small Cap Mutual Funds in 2026
Nippon India Small Cap Fund
The Nippon India Small Cap Fund invests in Small Cap stocks, aiming for long-term capital appreciation. It focuses on the growth potential of emerging companies and keeps a diversified portfolio within the Small Cap segment.
SBI Small Cap Fund
SBI Small Cap Fund invests mainly in Small Cap companies to achieve long-term growth. It aims for superior capital appreciation by maintaining a diversified equity portfolio and targeting emerging businesses with strong growth potential.
HDFC Small Cap Fund
HDFC Small Cap Fund aims for long-term capital growth by investing in a diversified portfolio of Small Cap stocks. It focuses on finding high-growth potential companies across different sectors, giving exposure to India’s expanding Small Cap market.
Quant Small Cap Fund
Quant Small Cap Fund primarily invests in Small Cap stocks to generate long-term capital appreciation. The fund takes a diversified approach, focusing on high-potential, under-researched companies in the Small Cap market.
Axis Small Cap Fund
Axis Small Cap Fund invests in Small Cap stocks to seek long-term capital appreciation. It targets emerging companies with high growth potential, providing diversified exposure to India’s Small Cap equity market.
How to Invest in Small-Cap Mutual Funds?
Here’s how you can identify and invest in top small-cap mutual funds with Tickertape Mutual Fund Screener -
- Launch Tickertape Mutual Fund Screener.
- Under the Category search for “Small-Cap Funds”.
- Sort out the top small-cap mutual funds based on over 50 fundamental and technical filters.
- After identifying the small-cap mutual fund that aligns with your investment thesis, click on “Place Order” to invest in the mutual fund.
With Tickertape Mutual Fund Screener, you can invest via ‘lumpsum’ or start a ‘SIP’ in small-cap Mutual Funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.
Taxation of Small Cap Mutual Funds
Below is a simplified breakdown of the tax rules that apply to small-cap mutual funds across short-term and long-term holdings.
| Capital Gains Type | Holding Period | Tax Rate |
|---|---|---|
| Short-Term Capital Gains (STCG) | Less than 12 months | 20% |
| Long-Term Capital Gains (LTCG) | More than 12 months | 12.5% |
Documents Required for Mutual Fund Investment
The following are some documents required for mutual fund investment:
Application Form
You would need one form to open a mutual fund account and another if you want to opt for an SIP plan. In addition, you will be required to submit an ECS form if you are opting for an electronic transfer from your bank account. Some fund houses may also request that you complete additional forms, such as a risk profile form.
KYC Compliance
You must verify your PAN to comply with the Know Your Customer (KYC) norms for investing in mutual funds. You can register yourself for KYC via CDSL Ventures Limited (CVL). If you are KYC-compliant, you are required to submit the KYC acknowledgement letter or a copy. But if you are not, you need to furnish the following documents:
- KYC form
- Passport-sized photograph
- Identity Proof: PAN with photograph, passport, Aadhaar, driving licence, or voter ID
- Address proof: Aadhaar, passport, driving licence, voter ID card, registered lease, sale agreement of residence, ration card, flat maintenance bill, insurance copy, utility bills for the last three months
How To Select The Top Performing Small Cap Mutual Funds In India?
- Review the fund's track record: Check how the fund performed during market downturns in the past.
- Look at the fund's Alpha value: Alpha shows if the fund has done better than its benchmark.
- Check the expense ratio: The expense ratio tells you how much the AMC charges to manage the fund, shown as a percentage of small cap mutual funds returns.
- Match the fund's objective with yours: Make sure the fund’s goals align with your financial needs.
- Consider the fund manager's performance: The manager’s ability can impact how well the fund does.
Benefits of Investing in Small Cap Mutual Funds
High Growth Potential
Small cap mutual funds invest in smaller companies that may still be in the early stages of business expansion. As these companies grow their revenues, market share and profitability, they may offer higher growth potential compared to more established large-cap companies.
Portfolio Diversification
Small cap mutual funds provide exposure to companies beyond the large-cap universe. This can add a different segment of the equity market to an investor’s portfolio and reduce dependence on only large, well-established businesses.
Access to Emerging Businesses
These funds allow investors to participate in companies that may be at an early growth stage. Some of these businesses may later expand into mid-cap or large-cap companies, although this transition is not guaranteed.
Long-Term Wealth Creation Potential
Small cap stocks have the potential to deliver strong returns over longer periods, especially when businesses scale successfully. However, they can also face sharp volatility, and past performance does not guarantee future returns.
Risks of Investing in Small Cap Mutual Funds
High Volatility
Small cap mutual funds can see sharper price movements than large cap or diversified equity funds. Since smaller companies are more sensitive to market sentiment, earnings changes and liquidity conditions, fund values may rise or fall significantly over short periods.
Lower Liquidity
Small cap stocks usually have lower trading volumes compared to larger companies. This can make it harder for fund managers to buy or sell certain stocks quickly, especially during market corrections or periods of heavy redemption pressure.
Market Risk
Small cap companies may be more affected by economic slowdowns, interest rate changes and weak market conditions. During uncertain phases, investors may move towards larger, more stable companies, which can lead to sharper declines in small cap stocks.
Limited Financial Stability
Many small cap companies operate with smaller balance sheets, limited cash reserves and lower access to capital compared to established large-cap companies. This can make it harder for them to manage debt, expand operations or withstand difficult business cycles.
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Factors to Consider Before Investing in Small Cap Mutual Funds
Investment Horizon
Small cap mutual funds can move through sharp phases of rise and decline across market cycles. A longer investment horizon helps investors understand how short-term volatility may fit into their overall timeline and financial goals.
Risk Tolerance
Small cap stocks usually show higher price swings than large-cap stocks. Understanding personal risk tolerance helps investors assess whether they are comfortable with possible short-term declines, uneven returns and higher volatility in fund value.
Research and Analysis
Reviewing the fund’s portfolio, sector exposure, stock concentration and diversification gives a clearer view of where the money is allocated. This also helps understand whether the fund is spread across businesses or concentrated in select themes.
Fund Manager Expertise
Small cap funds rely heavily on stock selection because many companies in this space have limited coverage. The fund manager’s experience, investment style and ability to manage risk across market cycles can influence fund performance.
Market Conditions
Small sap stocks may react strongly to changes in interest rates, liquidity, earnings trends and broader market sentiment. Observing market conditions helps investors understand why Small cap funds may perform differently during rallies, corrections or uncertain phases.
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Frequently Asked Questions About Small-Cap Mutual Funds
What is a Small Cap fund in mutual funds?
A Small Cap mutual fund primarily invests in companies with smaller market capitalisation, typically those ranked beyond the top 250 by market value. These funds aim for long-term capital appreciation by investing in emerging and growing businesses.What are the best small cap mutual funds in 2026?
Here are the best small cap mutual funds in 2026 as per 3Y CAGR:
- Bandhan Small Cap Fund
- ITI Small Cap Fund
- Invesco India Smallcap Fund
- Mahindra Manulife Small Cap Fund
- Bank of India Small Cap Fund
Disclaimer: Please note that this small cap fund list is not a recommendation. Please do your own research or consult your financial advisor before investing.How to select a Small Cap mutual fund?
Here’s how to choose the best Small Cap mutual fund for investing -
- Assess your risk tolerance.
- Analyse the fund’s performance on Tickertape Mutual Fund Screener.
- Compare the expense ratio.
- Evaluate portfolio diversification across sectors, market caps, and asset classes.
- Understand tax implications as equity and debt funds are taxed differently.
- Check for exit load and lock-in period.
Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.Is it good to invest in Small Cap funds?
Small Cap funds have higher growth potential but also come with higher volatility and risk. These funds may be suitable for investors with a higher risk tolerance and a long-term investment horizon, as they can experience significant market fluctuations.Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.Why should I invest in top mutual funds?
Top mutual funds tend to offer attractive returns in the long run. However, you should research funds well before investing in them. Additionally, mutual funds can be top performers based on various parameters, including rolling returns, CAGR returns, Alpha, and more. So research well and analyse them before investing.Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.How to invest in top Small Cap mutual funds?
- Launch Tickertape Mutual Fund Screener.
- Sort out the top Small Cap mutual funds based on over 50 fundamental and technical filters.
- Click on “Place Order” to invest in the desired mutual fund. Your order will be placed.
Is SIP better than lumpsum for small cap funds?
SIP may help spread investments over time and reduce the impact of short-term volatility, which is common in Small Cap funds. Lumpsum investing may work differently depending on market timing, valuations and investor risk appetite. The suitable option between lump sum and SIP depends on the investment horizon, cash flow, and comfort with market fluctuations.Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.What is the tax treatment of small cap mutual funds?
Small cap funds are equity-oriented schemes and are subject to equity capital gains tax rates. Short-term capital gains (STCG) on units held for 12 months or less are taxed at 20%. Long-term capital gains (LTCG) on units held for more than 12 months are taxed at 12.5%, with a Rs 1.25 lakh annual exemption on total equity LTCG (across all equity funds and listed shares combined). These rates were updated by the Union Budget 2024 effective July 23, 2024. Dividends from small cap funds are added to the investor's income and taxed at slab rates.What is rolling return consistency in small cap funds?
Rolling return consistency measures what percentage of all historical 3-year or 5-year investment windows gave a positive return (or outperformed the benchmark). For example, a small cap fund with 90% positive 3-year rolling returns delivered positive results regardless of entry point in 90% of historical scenarios.How to evaluate a small cap mutual fund?
A small cap mutual fund can be evaluated by reviewing its long-term returns, consistency across market cycles, risk measures, expense ratio, portfolio diversification and fund manager track record. Investors also look at sector exposure, stock concentration, AUM size and downside performance during market corrections.Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
