Best Small Cap Funds in India (2026)
Live · updated 2026-09-16 Ranked by data, refreshed from daily NAVs
This is the complete, data-ranked list of small caps we track - every Direct-Growth scheme in the category with a meaningful track record, ordered by long-term quality (King Score). This page is recomputed from NAV data every day, so it cannot go stale, and every fund on it links to a full research page with returns, risk, SIP outcomes, holdings and manager track record.
Small cap funds invest at least 65% of their money in companies ranked 251st and beyond by market value - the smallest listed businesses in India. This is where the market's future multibaggers hide, and also where its accidents happen: these companies have thinner trading volumes, less analyst coverage and fragile balance sheets, so both the rallies and the crashes run harder than anywhere else in equity investing.
Two practical truths follow. First, fund selection matters more here than in any other category - the gap between a good and a bad small cap fund is enormous, which is exactly what the ranking below measures. Second, entry and exit timing punish impatience: this category rewards people who can hold through a 40% fall without flinching and punishes everyone else. Most experienced investors treat small caps as a satellite holding, not the core of a portfolio, and prefer SIPs over lumpsums to average through the swings.
Tap any column heading to sort. Every fund name links to its full review.
| # | Fund | RS | King | 3M | 6M | 1Y | 3Y CAGR | 5Y CAGR | 10Y CAGR | Sharpe | Roll 3Y | Worst fall |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Bandhan Small Cap Fund | 59 | 87 | 5.3% | 21.4% | 9.8% | 23.9% | 19.1% | n/a | 0.94 | 31.3% | -24.3% |
| 2 | Invesco India Smallcap Fund | 66 | 86 | 6.4% | 22.3% | 14.0% | 22.2% | 19.6% | n/a | 0.83 | 28.7% | -37.7% |
| 3 | BANK OF INDIA Small Cap Fund | 99 | 79 | 8.5% | 39.1% | 24.3% | 20.7% | 19.4% | n/a | 0.72 | 29.9% | -32.4% |
| 4 | PGIM India Small Cap Fund | 73 | 77 | 8.3% | 25.0% | 11.8% | 15.8% | 13.3% | n/a | 0.58 | 15.8% | -24.6% |
| 5 | ITI Small Cap Fund | 90 | 75 | 8.9% | 30.5% | 19.0% | 23.8% | 18.5% | n/a | 0.85 | 26.5% | -39.9% |
| 6 | DSP Small Cap Fund | 75 | 74 | 7.3% | 23.4% | 15.7% | 16.8% | 17.7% | 16.9% | 0.57 | 23.3% | -49.1% |
| 7 | Axis Small Cap Fund | 55 | 74 | 5.9% | 20.0% | 8.7% | 14.7% | 15.5% | 19.3% | 0.53 | 19.9% | -34.6% |
| 8 | Mahindra Manulife Small Cap Fund | 86 | 73 | 8.8% | 26.3% | 16.0% | 19.6% | n/a | n/a | 0.68 | 24.8% | -26.0% |
| 9 | Sundaram Small Cap Fund | 66 | 71 | 4.5% | 26.5% | 13.6% | 16.3% | 16.5% | 15.2% | 0.56 | 21.2% | -57.1% |
| 10 | Edelweiss Small Cap Fund | 37 | 69 | 3.3% | 16.2% | 6.9% | 14.5% | 16.4% | n/a | 0.48 | 28.6% | -37.1% |
| 11 | Union Small Cap Fund | 87 | 68 | 7.6% | 25.0% | 19.9% | 16.5% | 16.7% | 17.1% | 0.51 | 18.5% | -44.7% |
| 12 | UTI Small Cap Fund | 27 | 68 | 2.9% | 17.1% | 4.4% | 13.1% | 14.8% | n/a | 0.38 | 20.8% | -22.3% |
| 13 | LIC MF Small Cap Fund | 83 | 64 | 6.9% | 29.4% | 13.8% | 17.9% | n/a | n/a | 0.55 | n/a | -27.0% |
| 14 | quant Small Cap Fund | 64 | 64 | 5.4% | 24.3% | 13.3% | 16.8% | 18.9% | 20.7% | 0.55 | 18.3% | -51.6% |
| 15 | Nippon India Small Cap Fund | 40 | 62 | 3.3% | 17.1% | 7.2% | 14.3% | 18.2% | 20.9% | 0.46 | 25.8% | -48.6% |
The category returns: 1 month to 10 years𝕏 Share this statWhatsApp
Over the last 1 year, the category averaged 9.9% - the best, BANK OF INDIA Small Cap Fund, returned 24.3% while the weakest managed -3.0%. That spread is why picking within the category matters. Over 10 years the average compounding rate is 17.6% a year, which turned ₹1 lakh into about ₹505,900.
| Period | Average | Median | Best fund | Weakest |
|---|---|---|---|---|
| 1 month | -1.5% | -1.7% | quant Small Cap Fund (0.3%) | -3.3% |
| 3 months | 5.5% | 5.9% | ITI Small Cap Fund (8.9%) | 1.8% |
| 6 months | 22.0% | 22.1% | BANK OF INDIA Small Cap Fund (39.1%) | 9.7% |
| 1 year | 9.9% | 9.8% | BANK OF INDIA Small Cap Fund (24.3%) | -3.0% |
| 3 years (CAGR) | 15.6% | 14.5% | Bandhan Small Cap Fund (23.9%) | 10.2% |
| 5 years (CAGR) | 16.2% | 15.9% | Invesco India Smallcap Fund (19.6%) | 12.3% |
| 10 years (CAGR) | 17.6% | 17.2% | Nippon India Small Cap Fund (20.9%) | 13.5% |
Averages across every qualifying fund, refreshed daily. Best-fund links open that fund's full review.
What ₹1 lakh became
The same returns, translated into money - at the average pace and at the best fund's pace:
| Held for | Average pace | ₹1 lakh → (average) | ₹1 lakh → (best fund) |
|---|---|---|---|
| 1 year | 9.9% a year | ₹109,900 | ₹124,300 |
| 3 years | 15.6% a year | ₹154,500 | ₹190,200 |
| 5 years | 16.2% a year | ₹211,900 | ₹244,700 |
| 10 years | 17.6% a year | ₹505,900 | ₹667,200 |
Pre-tax, from historical returns. The averages smooth over a very bumpy ride - see the worst-fall column in the ranking above for what the journey involved.
The category by the numbers
| Funds that qualify | 25 |
| Combined assets | ₹459,368 Cr |
| Average 3-year return | 15.6% a year (best 23.9%, weakest 10.2%) |
| Average 5-year return | 16.2% a year |
| Average worst-ever fall | -39.5% (deepest: -57.4%) |
| Average expense ratio (Direct) | 0.61% |
| Largest fund by assets | Nippon India Small Cap Fund (₹74,604 Cr) |
Put the risk number in rupees: at the average worst fall of -39.5%, ₹1 lakh temporarily becomes about ₹60,500. That is the stretch every ranked fund's investors had to sit through at some point - the ranking rewards the funds that made that wait worthwhile.
Momentum check: what is hot right now
As of 2026-09-16, 2 of the 25 funds here rate RS 90 or above (top-decile recent momentum versus peers). The strongest momentum belongs to BANK OF INDIA Small Cap Fund (RS 99/99). Average return over the last 3 months: 5.5%; over 6 months: 22.0%. Momentum is a snapshot, not a ranking criterion here - but it tells you whether this corner of the market is currently in favour.
Before you pick a small cap fund: four checks
- Open the fund's page and look at the worst-fall figure in rupees - decide whether you could genuinely sit through it without selling.
- Check the rolling-return consistency, not just the trailing return: a fund that delivered in most windows beats one lucky streak.
- Compare its expense ratio against the category average shown above - a persistent 0.5% cost gap compounds into lakhs over decades.
- If you already own funds in this category, check the portfolio overlap section on the fund page - two funds owning the same stocks is one bet, not two.
Filter the entire Indian mutual fund universe by 40+ metrics - returns, consistency, drawdown, RS Rating, King Score, cost - then chart, compare and backtest anything you find.
How to read the table
RS (1-99) is recent momentum versus category peers - 99 is the hottest right now. King (0-100) is the long-term quality composite this list is ranked by. 3M/6M are recent returns; 3Y and 5Y CAGR are annualised longer records. Sharpe is return earned per unit of volatility - higher means smoother compounding. Roll 3Y is the median of every 3-year holding period in the fund's history, the fairest single return number a fund has. Worst fall is the deepest peak-to-bottom loss ever - the number that tests whether you would have stayed invested. Missing values show as n/a, usually because the fund is too young for that measurement.
The top 10, decoded𝕏 Share this statWhatsApp
- Bandhan Small Cap Fund (Small Cap Fund) - King Score 87/100, RS 59/99 right now. 3-year return 23.9% a year, against a worst-ever fall of 24.3% (₹1 lakh briefly ₹75,700). 5-year pace 19.1% a year, median 3-year rolling return 31.3%, sharpe 0.94.
- Invesco India Smallcap Fund (Small Cap Fund) - King Score 86/100, RS 66/99 right now. 3-year return 22.2% a year, against a worst-ever fall of 37.7% (₹1 lakh briefly ₹62,300). 5-year pace 19.6% a year, median 3-year rolling return 28.7%, sharpe 0.83.
- BANK OF INDIA Small Cap Fund (Small Cap Fund) - King Score 79/100, RS 99/99 right now. 3-year return 20.7% a year, against a worst-ever fall of 32.4% (₹1 lakh briefly ₹67,600). 5-year pace 19.4% a year, median 3-year rolling return 29.9%, sharpe 0.72.
- PGIM India Small Cap Fund (Small Cap Fund) - King Score 77/100, RS 73/99 right now. 3-year return 15.8% a year, against a worst-ever fall of 24.6% (₹1 lakh briefly ₹75,400). 5-year pace 13.3% a year, median 3-year rolling return 15.8%, sharpe 0.58.
- ITI Small Cap Fund (Small Cap Fund) - King Score 75/100, RS 90/99 right now. 3-year return 23.8% a year, against a worst-ever fall of 39.9% (₹1 lakh briefly ₹60,100). 5-year pace 18.5% a year, median 3-year rolling return 26.5%, sharpe 0.85.
- DSP Small Cap Fund (Small Cap Fund) - King Score 74/100, RS 75/99 right now. 3-year return 16.8% a year, against a worst-ever fall of 49.1% (₹1 lakh briefly ₹50,900). 5-year pace 17.7% a year, median 3-year rolling return 23.3%, sharpe 0.57.
- Axis Small Cap Fund (Small Cap Fund) - King Score 74/100, RS 55/99 right now. 3-year return 14.7% a year, against a worst-ever fall of 34.6% (₹1 lakh briefly ₹65,400). 5-year pace 15.5% a year, median 3-year rolling return 19.9%, sharpe 0.53.
- Mahindra Manulife Small Cap Fund (Small Cap Fund) - King Score 73/100, RS 86/99 right now. 3-year return 19.6% a year, against a worst-ever fall of 26.0% (₹1 lakh briefly ₹74,000). Median 3-year rolling return 24.8%, sharpe 0.68.
- Sundaram Small Cap Fund (Small Cap Fund) - King Score 71/100, RS 66/99 right now. 3-year return 16.3% a year, against a worst-ever fall of 57.1% (₹1 lakh briefly ₹42,900). 5-year pace 16.5% a year, median 3-year rolling return 21.2%, sharpe 0.56.
- Edelweiss Small Cap Fund (Small Cap Fund) - King Score 69/100, RS 37/99 right now. 3-year return 14.5% a year, against a worst-ever fall of 37.1% (₹1 lakh briefly ₹62,900). 5-year pace 16.4% a year, median 3-year rolling return 28.6%, sharpe 0.48.
Frequently asked questions
Which is the best small cap fund right now?
On our data-driven ranking as of 2026-09-16, Bandhan Small Cap Fund scores highest (King Score 87/100). That is a description of its record versus peers, not a recommendation - rankings move as NAVs update, and the right fund depends on your goals and risk tolerance.
Are small cap funds risky?
The category's numbers answer this better than adjectives: the average fund here has seen a worst-ever fall of -39.5%, and the deepest fall in the category is -57.4%. If a temporary loss of that size would make you sell, this category (or its allocation size in your portfolio) deserves a rethink. Risk here is not hypothetical - it is a matter of record.
What returns have small cap funds given historically?
Across the 25 funds we track in this category, the average 3-year return is 15.6% a year, with the best at 23.9% and the weakest at 10.2%. Over 5 years the category average is 16.2% a year. These are records, not projections - the next three years owe nothing to the last three.
What is the average 1-year return of small cap funds right now?
As of 2026-09-16, the 25 qualifying funds averaged 9.9% over the last year (median 9.8%). The best, BANK OF INDIA Small Cap Fund, returned 24.3%; the weakest returned -3.0%. One year is weather, not climate - check the 5 and 10 year columns before drawing conclusions.
Which small cap fund gave the highest return in the last 10 years?
Nippon India Small Cap Fund leads with 20.9% a year over 10 years - ₹1 lakh became about ₹667,200 pre-tax. The average across funds with a 10-year record is 17.6% a year. A decade-long record says a lot about the past and nothing certain about the next decade.
How is this list ranked?
Funds are ordered by King Score - a 0-100 composite of 3-year returns, rolling consistency, worst drawdown and Sharpe, each measured against category peers. The full formulas are public - see our methodology page. No fund pays to be here and rankings cannot be bought.
Should I invest in the #1 fund on this list?
We cannot tell you that - MF Terminal is descriptive research, not investment advice. A top rank says the past record was strong versus peers. Read the fund's full page, check the drawdowns you would have to sit through, and decide against your own horizon.
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All figures pre-tax, from AMFI NAV history. Rankings are descriptive and change with the data. Nothing here is investment advice or a recommendation to buy, sell or hold any fund. Past performance does not guarantee future returns.