Top Small Cap Mutual Funds - Best Funds, Benefits & Risks
Mutual funds attract investors because they offer diversification and professional management. However, choosing the right fund among many options can be difficult. This guide explains the leading long-term mutual funds in India using performance data, risk measures, and consistent records.
Top Small Cap Mutual Funds in 2025
Showing 1 - 20 of 32 results
last updated at 8:00 AM IST
| NameMFs (32)↓ | ↓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 | 68,969.15 68,969.15 | 187.28 187.28 | -0.98 -0.98 | -5.93 -5.93 | 21.20 21.20 | 0.63 0.63 | 1.00 1.00 | 16.38 16.38 | |
| 2. | HDFC Small Cap Fund HDFC Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 38,412.10 38,412.10 | 159.87 159.87 | -1.35 -1.35 | -0.71 -0.71 | 21.13 21.13 | 0.67 0.67 | 1.00 1.00 | 16.33 16.33 | |
| 3. | SBI Small Cap Fund SBI Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 36,945.09 36,945.09 | 194.34 194.34 | -1.67 -1.67 | -5.49 -5.49 | 14.14 14.14 | 0.75 0.75 | 1.00 1.00 | 13.77 13.77 | |
| 4. | Quant Small Cap Fund Quant Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 30,504.39 30,504.39 | 276.41 276.41 | 0.72 0.72 | -6.51 -6.51 | 22.03 22.03 | 0.75 0.75 | 1.00 1.00 | 16.57 16.57 | |
| 5. | Axis Small Cap Fund Axis Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 27,065.84 27,065.84 | 122.41 122.41 | -0.12 -0.12 | -0.94 -0.94 | 18.57 18.57 | 0.56 0.56 | 1.00 1.00 | 15.14 15.14 | |
| 6. | Kotak Small Cap Fund Kotak Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 18,023.96 18,023.96 | 295.98 295.98 | -3.33 -3.33 | -9.27 -9.27 | 15.86 15.86 | 0.55 0.55 | 1.00 1.00 | 15.64 15.64 | |
| 7. | Bandhan Small Cap Fund Bandhan Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 17,380.29 17,380.29 | 51.14 51.14 | 1.35 1.35 | -1.18 -1.18 | 30.64 30.64 | 0.40 0.40 | 1.00 1.00 | 17.63 17.63 | |
| 8. | DSP Small Cap Fund DSP Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 16,867.93 16,867.93 | 216.34 216.34 | -0.35 -0.35 | -1.82 -1.82 | 20.11 20.11 | 0.77 0.77 | 1.00 1.00 | 17.46 17.46 | |
| 9. | HSBC Small Cap Fund HSBC Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 16,547.87 16,547.87 | 87.81 87.81 | -2.04 -2.04 | -11.21 -11.21 | 18.53 18.53 | 0.64 0.64 | 1.00 1.00 | 19.32 19.32 | |
| 10. | Franklin India Small Cap Fund Franklin India Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 13,789.53 13,789.53 | 188.97 188.97 | -1.33 -1.33 | -7.77 -7.77 | 20.33 20.33 | 0.90 0.90 | 1.00 1.00 | 15.92 15.92 | |
| 11. | Canara Rob Small Cap Fund Canara Rob Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 13,285.48 13,285.48 | 42.50 42.50 | -0.21 -0.21 | -5.76 -5.76 | 16.18 16.18 | 0.46 0.46 | 1.00 1.00 | 16.29 16.29 | |
| 12. | Tata Small Cap Fund Tata Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 11,792.26 11,792.26 | 41.86 41.86 | -7.29 -7.29 | -12.72 -12.72 | 16.93 16.93 | 0.33 0.33 | 0.50 0.50 | 17.40 17.40 | |
| 13. | Invesco India Smallcap Fund Invesco India Smallcap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 8,720.48 8,720.48 | 47.07 47.07 | 1.95 1.95 | 0.02 0.02 | 25.35 25.35 | 0.40 0.40 | 1.00 1.00 | 18.80 18.80 | |
| 14. | ICICI Pru Smallcap Fund ICICI Pru Smallcap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 8,621.53 8,621.53 | 97.22 97.22 | -2.20 -2.20 | -2.36 -2.36 | 17.11 17.11 | 0.76 0.76 | 1.00 1.00 | 13.40 13.40 | |
| 15. | Motilal Oswal Small Cap Fund Motilal Oswal Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 5,829.87 5,829.87 | 14.53 14.53 | 2.64 2.64 | -1.09 -1.09 | - - | 0.61 0.61 | 1.00 1.00 | 16.99 16.99 | |
| 16. | Edelweiss Small Cap Fund Edelweiss Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 5,296.70 5,296.70 | 48.32 48.32 | -0.67 -0.67 | -3.47 -3.47 | 20.26 20.26 | 0.43 0.43 | 1.00 1.00 | 16.47 16.47 | |
| 17. | Aditya Birla SL Small Cap Fund Aditya Birla SL Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 5,127.12 5,127.12 | 97.36 97.36 | 1.06 1.06 | -4.13 -4.13 | 17.94 17.94 | 0.89 0.89 | 1.00 1.00 | 17.26 17.26 | |
| 18. | UTI Small Cap Fund UTI Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 4,917.65 4,917.65 | 27.80 27.80 | -0.46 -0.46 | -3.46 -3.46 | 18.23 18.23 | 0.63 0.63 | 1.00 1.00 | 17.29 17.29 | |
| 19. | Mahindra Manulife Small Cap Fund Mahindra Manulife Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 4,307.53 4,307.53 | 20.36 20.36 | 1.47 1.47 | -3.65 -3.65 | - - | 0.43 0.43 | 1.00 1.00 | 17.63 17.63 | |
| 20. | Sundaram Small Cap Fund Sundaram Small Cap Fund | Small Cap Fund Small Cap Fund | Growth Growth | 3,495.63 3,495.63 | 291.42 291.42 | 2.59 2.59 | 0.33 0.33 | 20.83 20.83 | 0.85 0.85 | 1.00 1.00 | 16.51 16.51 |
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?
A small-cap mutual fund is an equity mutual fund that invests a minimum of 65% in the stocks of companies with a market capitalisation of less than ₹5,000 cr. The stocks that are ranked 251 and below are called small-cap stocks. Small-cap mutual funds are highly volatile Since they are risky, these funds can be considered for a long-term investment horizon.
What is a Mutual Fund's NAV?
The Net Asset Value or NAV of a mutual fund shows the price of one unit in the scheme. Similar to paying a stock price for one share, investors pay the NAV to buy one unit of a mutual fund. Unlike stock prices that change during trading hours, the NAV is calculated at the end of the day after adjusting for the closing prices of all underlying assets. The NAV also includes adjustments for management, administration, distribution costs, and other related expenses.
Overview of Top Small-Cap Mutual Funds
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.
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.
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.
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
<p>Below is a simplified breakdown of the tax rules that apply to small-cap mutual funds across short-term and long-term holdings.</p>
| 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% |
Benefits of Investing in Small Cap Mutual Funds
High Growth Potential
Small-cap companies tend to grow faster than their large-cap counterparts, which can translate into stronger returns as these businesses expand.
Diversification
Small-cap mutual funds spread your investment across numerous smaller companies, adding a different dimension to your portfolio mix.
Early Investment Opportunity
These funds provide access to emerging businesses during their growth phase, before they potentially transition into mid or large-cap companies.
Long-Term Returns
Historically, small-cap stocks have delivered superior returns over extended periods when compared to large-cap alternatives. However, historical performance does not guarantee future returns and investors must remain vigilant and consult a financial advisor before investing.
Risks of Investing in Small Cap Mutual Funds
High Volatility
Price swings in small-cap stocks tend to be more pronounced, resulting in greater fluctuations in your investment value over shorter periods.
Lower Liquidity
Trading volumes for these stocks are typically lighter, which can make entering or exiting positions more challenging without affecting prices.
Market Risk
Smaller companies often face greater exposure to market turbulence and economic slowdowns due to their size and resources.
Limited Financial Stability
These companies typically operate with tighter financial margins and fewer resources to weather difficult periods compared to established corporations.
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Factors to Consider Before Investing in Small Cap Mutual Funds
Investment Horizon
Small-cap funds move through phases of rise and decline over time. Knowing how long you plan to stay invested helps you understand how these market cycles may fit into your timeline.
Risk Tolerance
Small-cap stocks often show bigger price swings. Being aware of how much movement you are comfortable seeing in your investment value helps you understand this category better.
Research and Analysis
Checking the fund’s portfolio, sectors it invests in, and how diversified it is gives you a clearer view of where the money is allocated and how the fund is positioned.
Fund Manager Expertise
Understanding the fund manager’s background and approach helps you learn how decisions are made and how the fund is managed on a day-to-day basis.
Market Conditions
Small-cap stocks may react strongly to changes in economic trends or market events. Observing these conditions helps you understand how the fund could behave in different phases of the market.
Popular Stock Collections
Popular Mutual Fund Collections
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 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.Which small-cap mutual fund is the best?
Here are the best small-cap mutual funds as per 3Y CAGR:
- Bandhan Small Cap Fund
- Quant Small Cap Fund
- HDFC Small Cap Fund
- Nippon India Small Cap Fund
- Franklin India Small Cap Fund
Disclaimer: Please note that this 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.
Do I need to have market knowledge to invest in top mutual funds?
It is not mandatory to have market knowledge to invest in mutual funds, but having a sound understanding helps you avoid avoidable risks. If you lack market knowledge, seeking financial advice before investing is paramount.
Disclaimer: Please note that small-cap funds are subject to market risks and investors without sufficient knowledge may suffer from losses. Investors should conduct thorough research on these funds and/or consult a financial advisor before investing.
