Best Small Cap Mutual Funds
Small cap funds invest in companies beyond the top 250 by size. They offer the highest growth potential of any equity category and also the sharpest falls, so they suit long horizons and strong stomachs.
Top small cap mutual funds by 3Y returns
20Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 06 Oct 2026, ITI Small Cap Fund (Direct plan, Growth option) leads small cap mutual funds on 3-year CAGR at +23.50%, followed by Bandhan Small Cap Fund at +23.02% and Bank of India Small Cap Fund at +22.17%. Across 36 small cap mutual funds the category averaged +15.25% over three years, at an average expense ratio of 0.95%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | ITI Small Cap Fund ITI | ★★★★☆ | +20.3% | +23.5% | +18.5% | 0.84% | ₹3,533Cr |
| 2 | Bandhan Small Cap Fund Bandhan | ★★★★★ | +11.2% | +23.0% | +19.1% | 0.61% | ₹32,794Cr |
| 3 | Bank of India Small Cap Fund Bank of India | ★★★★☆ | +31.7% | +22.2% | +20.3% | 0.78% | ₹3,105Cr |
| 4 | Invesco India Small Cap Fund Invesco | ★★★★★ | +14.3% | +21.9% | +19.4% | 0.64% | ₹15,129Cr |
| 5 | Mahindra Manulife Small Cap Fund Mahindra Manulife | ★★★☆☆ | +16.1% | +19.3% | — | 0.92% | ₹5,252Cr |
| 6 | LIC MF Small Cap Fund LIC | ★★☆☆☆ | +15.6% | +17.7% | — | 1.28% | ₹796.80Cr |
| 7 | Quant Small Cap Fund quant | ★★★☆☆ | +13.9% | +17.4% | +18.8% | 0.90% | ₹35,054Cr |
| 8 | DSP Small Cap Fund DSP | ★★★★☆ | +18.0% | +16.8% | +17.2% | 0.82% | ₹20,857Cr |
| 9 | Union Small Cap Fund Union | ★☆☆☆☆ | +20.6% | +16.7% | +17.0% | 1.08% | ₹2,544Cr |
| 10 | PGIM India Small Cap Fund PGIM India | ★★★☆☆ | +13.1% | +15.6% | +12.8% | 0.93% | ₹1,729Cr |
| 11 | Aditya Birla Sun Life Small Cap Fund Aditya Birla Sun Life | ★☆☆☆☆ | +17.6% | +15.0% | +13.0% | 1.07% | ₹6,030Cr |
| 12 | Axis Small Cap Fund Axis | ★★★★☆ | +9.2% | +14.9% | +15.2% | 0.72% | ₹30,705Cr |
| 13 | Nippon India Small Cap Fund Nippon India | ★★★☆☆ | +8.9% | +14.8% | +18.1% | 0.69% | ₹80,841Cr |
| 14 | Edelweiss Small Cap Fund Edelweiss | ★★★★☆ | +7.3% | +14.6% | +16.0% | 0.63% | ₹6,986Cr |
| 15 | HSBC Small Cap Fund HSBC | ★☆☆☆☆ | +13.4% | +14.3% | — | 0.77% | ₹18,453Cr |
| 16 | UTI Small Cap Fund UTI | ★★☆☆☆ | +4.9% | +13.2% | +14.5% | 1.05% | ₹5,348Cr |
| 17 | Kotak Small Cap Fund Kotak Mahindra | ★★★☆☆ | +5.7% | +12.1% | +12.2% | 0.65% | ₹19,241Cr |
| 18 | Tata Small Cap Fund Tata | ★★★☆☆ | +1.7% | +12.0% | +15.4% | 0.52% | ₹12,995Cr |
| 19 | Franklin India Small Cap Fund Franklin Templeton | ★★☆☆☆ | +4.5% | +11.7% | +14.9% | 1.06% | ₹14,646Cr |
| 20 | Canara Robeco Small Cap Fund Canara Robeco | ★★★☆☆ | +4.2% | +11.7% | +13.9% | 0.71% | ₹14,356Cr |
NAV data as of 06 Oct 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
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Frequently asked questions
What are small cap mutual funds?
Small cap funds invest in companies beyond the top 250 by size. They offer the highest growth potential of any equity category and also the sharpest falls, so they suit long horizons and strong stomachs.
Which is the best small cap fund right now?
ITI Small Cap Fund by ITI currently ranks first among small cap mutual funds by 3-year CAGR at +23.50%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have small cap mutual funds given?
The category has averaged +12.10% over 1 year, +15.25% annualized over 3 years, +15.45% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are small cap mutual funds taxed?
Equity taxation: gains within 1 year are short-term and taxed at 20%; beyond 1 year, long-term gains above ₹1.25 lakh a year are taxed at 12.5%.