Why these four
Of the 36 small-cap funds with a published average AUM for the July–September 2026 quarter, these four are the largest: Nippon India Small Cap, HDFC Small Cap, SBI Small Cap, and Quant Small Cap. Together they hold ₹1,98,951 crore, 44% of the category. Small-cap funds hold at least 65% in companies ranked 251st and below by market value. The funds that have gathered the most money are the ones most exposed to a problem small caps pose: there is only so much of a small company's stock to buy. Every figure is for the Direct plan, Growth option, from NAVs to 22 October 2026.
| Fund | Average AUM, July–September 2026 (₹ crore) | Share of category | Direct plan expense ratio |
|---|---|---|---|
| Nippon India Small Cap | 80,841 | 17.8% | 0.69% |
| HDFC Small Cap | 41,670 | 9.2% | 0.79% |
| SBI Small Cap | 41,386 | 9.1% | 0.81% |
| Quant Small Cap | 35,054 | 7.7% | 0.92% |
Returns
| Fund | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| Nippon India Small Cap | 1.59% | 12.23% | 17.05% | 19.39% |
| HDFC Small Cap | −7.07% | 8.25% | 13.34% | 16.50% |
| SBI Small Cap | 0.08% | 8.92% | 11.75% | 17.30% |
| Quant Small Cap | 6.19% | 15.69% | 17.07% | 20.12% |
| Category median | 4.57% | 12.32% | 14.14% | 16.24% |
Returns of a year or more are compounded annual rates. Over three years Quant Small Cap led at 15.69% and HDFC Small Cap was lowest at 8.25%, a gap of 7.44 points a year against a category median of 12.32%. One of the four was negative over one year.
Calendar years
| Year | Nippon India Small Cap | HDFC Small Cap | SBI Small Cap | Quant Small Cap | Category median |
|---|---|---|---|---|---|
| 2022 | 7.53% | 5.64% | 9.29% | 11.20% | 1.37% |
| 2023 | 50.17% | 46.17% | 26.62% | 48.05% | 42.98% |
| 2024 | 27.06% | 21.54% | 25.30% | 23.50% | 26.72% |
| 2025 | −4.02% | 0.25% | −4.08% | −1.36% | −2.81% |
| 2026 to 22 Oct | 3.65% | −4.49% | 2.02% | 9.28% | 7.11% |
A single calendar year can flatter or punish a fund by several points, which is why a table by year says more than one trailing figure. A dash means the fund did not hold a full record for that year.
Risk
| Fund | Volatility (3 yr) | Worst fall (3 yr) | Sharpe ratio | Now vs peak |
|---|---|---|---|---|
| Nippon India Small Cap | 16.6% | −24.2% | 0.35 | −8.2% |
| HDFC Small Cap | 16.0% | −22.6% | 0.11 | −9.1% |
| SBI Small Cap | 14.2% | −22.4% | 0.17 | −9.2% |
| Quant Small Cap | 17.7% | −24.4% | 0.52 | −6.8% |
| Category median | 17.0% | −24.1% | 0.35 | −8.8% |
SBI Small Cap was the steadiest of the four on three-year volatility (14.2%) and Quant Small Cap the bumpiest (17.7%). Volatility is the annualised standard deviation of daily returns; the worst fall is the deepest peak-to-trough drop in the last three years. The Sharpe ratio uses a 6.5% risk-free rate.
What a monthly SIP earned
| Fund | 3-year SIP return (a year) | 5-year SIP return (a year) |
|---|---|---|
| Nippon India Small Cap | 4.53% | 14.18% |
| HDFC Small Cap | 0.95% | 10.78% |
| SBI Small Cap | 3.05% | 9.73% |
| Quant Small Cap | 7.69% | 16.57% |
| Category median | 7.16% | 13.21% |
SIP returns are annualised (XIRR) for ₹10,000 a month. They differ from lump-sum returns because each instalment buys at a different price.
What they own
| Fund | Stocks held | Top-10 share of portfolio | Largest five holdings |
|---|---|---|---|
| Nippon India Small Cap | 256 | 14.5% | TD Power Systems Ltd 1.9%, Bharat Heavy Electricals Ltd 1.8%, HDFC Bank Ltd 1.8%, Apar Industries Ltd 1.7%, Acme Solar Holdings Ltd 1.3% |
| HDFC Small Cap | 85 | 25.4% | Firstsource Solutions Ltd 3.7%, Aster DM Quality Care Ltd 3.4%, Gabriel India Ltd 3.1%, eClerx Services Ltd 2.9%, Bank of Baroda 2.6% |
| SBI Small Cap | 63 | 27.3% | Ather Energy Ltd 3.5%, Navin Fluorine International Ltd 3.3%, City Union Bank Ltd 2.9%, Sundram Fasteners Ltd 2.8%, Kalpataru Projects International Ltd 2.7% |
| Quant Small Cap | 104 | 36.1% | HFCL Ltd 6.1%, RBL Bank Ltd 4.8%, Adani Enterprises Ltd 4.4%, Adani Power Ltd 3.6%, Aegis Logistics Ltd 3.5% |
Portfolios are the latest filed monthly disclosures. A concentrated fund puts more of its result on a few names; Quant Small Cap is the most concentrated of the four with 36.1% in its ten largest holdings, and Nippon India Small Cap the least at 14.5%.
How much they overlap
| Pair | Stocks in common | Overlap by weight |
|---|---|---|
| Nippon India Small Cap / HDFC Small Cap | 31 | 11.1% |
| Nippon India Small Cap / SBI Small Cap | 29 | 10.1% |
| Nippon India Small Cap / Quant Small Cap | 27 | 6.9% |
| HDFC Small Cap / SBI Small Cap | 8 | 8.7% |
| HDFC Small Cap / Quant Small Cap | 8 | 4.0% |
| SBI Small Cap / Quant Small Cap | 3 | 2.8% |
"Overlap by weight" adds up, stock by stock, the smaller of the two weights. The closest pair is Nippon India Small Cap and HDFC Small Cap at 11.1%; the most different is SBI Small Cap and Quant Small Cap at 2.8%. Holding two funds with a high overlap buys little diversification.
Cost
Among the four, Nippon India Small Cap charged the lowest Direct expense ratio at 0.69% and Quant Small Cap the highest at 0.92%. On a ₹10 lakh holding that is a difference of ₹2,300 a year. Expense ratios are deducted from the NAV every day, so they are already inside the returns shown above.
Reading the comparison
- Size is not a verdict. These are the largest funds in the category, not the best; a fund's rank by AUM says nothing about its rank by return.
- Three years is a short window for an equity fund. A fund that led in the last rally may lag in the next fall.
- Returns are historical, computed from NAVs, and not a forecast. The closest pair by holdings was Nippon India Small Cap and HDFC Small Cap (11.1% overlap by weight).
- This is not a recommendation to buy or sell any fund.
Source: AMFI NAVs to 22 October 2026; AMFI average AUM for July–September 2026; fund houses' TER disclosures; monthly portfolio disclosures.
Frequently asked questions
Which is the biggest small-cap fund in India?
By average AUM for July–September 2026, Nippon India Small Cap at about ₹80,841 crore, ahead of HDFC Small Cap (₹41,670 crore), SBI Small Cap (₹41,386 crore) and Quant Small Cap (₹35,054 crore).
Which of the four biggest small-cap funds has the best 3-year return?
Quant Small Cap, at 15.69% a year to 22 October 2026, against 8.25% for HDFC Small Cap and a category median of 12.32%. Direct plan, Growth option.
Which has the lowest expense ratio?
Nippon India Small Cap, at 0.69% for the Direct plan; Quant Small Cap charges 0.92%.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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