Small Cap Mutual Funds
Small cap equity mutual funds invest in companies that rank below 250 in terms of market capitalisation. Since 2018, all stocks are indexed descending on market capitalisation. Small-cap funds have to invest at least 65% of their corpus in small cap stocks. View More
Best Small Cap Mutual Funds
Small Cap Mutual Funds List
| Fund Name | Fund Size(Cr.) | 3Y | 5Y | |
|---|---|---|---|---|
Nippon India Small Cap Fund - Direct Growth
|
62,260 | 29.76% | 36.45% | |
Bandhan Small Cap Fund - Direct Growth
|
8,489 | 29.16% | - | |
Tata Small Cap Fund - Direct Growth
|
9,319 | 27.76% | 35.15% | |
Quant Small Cap Fund - Direct Growth
|
26,645 | 27.74% | 47.39% | |
HSBC Small Cap Fund - Direct Growth
|
17,306 | 26.27% | 31.78% | |
Invesco India Smallcap Fund - Direct Growth
|
5,376 | 25.82% | 32.77% | |
Bank of India Small Cap Fund - Direct Growth
|
1,517 | 25.82% | 38.47% | |
Franklin India Smaller Companies Fund - Direct Growth
|
14,460 | 25.39% | 29.96% | |
LIC MF Small Cap Fund - Direct Growth
|
370 | 25.14% | 30.14% | |
Edelweiss Small Cap Fund - Direct Growth
|
4,293 | 24.89% | 34.46% |
| Fund Name | 1Y | Rating | Fund Size |
|---|---|---|---|
Nippon India Small Cap Fund - Direct Growth
|
43.95% Fund Size - 62,260 |
||
Bandhan Small Cap Fund - Direct Growth
|
67.34% Fund Size - 8,489 |
||
Tata Small Cap Fund - Direct Growth
|
51.71% Fund Size - 9,319 |
||
Quant Small Cap Fund - Direct Growth
|
51.10% Fund Size - 26,645 |
||
HSBC Small Cap Fund - Direct Growth
|
41.99% Fund Size - 17,306 |
||
Invesco India Smallcap Fund - Direct Growth
|
47.76% Fund Size - 5,376 |
||
Bank of India Small Cap Fund - Direct Growth
|
43.78% Fund Size - 1,517 |
||
Franklin India Smaller Companies Fund - Direct Growth
|
40.15% Fund Size - 14,460 |
||
LIC MF Small Cap Fund - Direct Growth
|
49.94% Fund Size - 370 |
||
Edelweiss Small Cap Fund - Direct Growth
|
40.82% Fund Size - 4,293 |
Who Should Invest in Small Cap Mutual Funds?
Features of Small Cap Mutual Funds
Factors to consider while investing in Small Cap Funds
Taxability of Small Cap Funds
Risk Involved With Small Cap Funds
Advantages of Small Cap Funds
Popular Small Cap Mutual Funds
- Nippon India Small Cap Fund - Direct Growth
- ₹ 100
- ₹ 62,2600
- 29.76%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 62,260
- 3Y Return
- 29.76%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 62,260
- 3Y Return
- 29.76%
- Bandhan Small Cap Fund - Direct Growth
- ₹ 100
- ₹ 8,4890
- 29.16%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 8,489
- 3Y Return
- 29.16%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 8,489
- 3Y Return
- 29.16%
- Tata Small Cap Fund - Direct Growth
- ₹ 100
- ₹ 9,3190
- 27.76%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 9,319
- 3Y Return
- 27.76%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 9,319
- 3Y Return
- 27.76%
- Quant Small Cap Fund - Direct Growth
- ₹ 1000
- ₹ 26,6450
- 27.74%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 26,645
- 3Y Return
- 27.74%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 26,645
- 3Y Return
- 27.74%
- HSBC Small Cap Fund - Direct Growth
- ₹ 500
- ₹ 17,3060
- 26.27%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 17,306
- 3Y Return
- 26.27%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 17,306
- 3Y Return
- 26.27%
- Invesco India Smallcap Fund - Direct Growth
- ₹ 500
- ₹ 5,3760
- 25.82%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 5,376
- 3Y Return
- 25.82%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 5,376
- 3Y Return
- 25.82%
- Bank of India Small Cap Fund - Direct Growth
- ₹ 1000
- ₹ 1,5170
- 25.82%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 1,517
- 3Y Return
- 25.82%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 1,517
- 3Y Return
- 25.82%
- Franklin India Smaller Companies Fund - Direct Growth
- ₹ 500
- ₹ 14,4600
- 25.39%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 14,460
- 3Y Return
- 25.39%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 14,460
- 3Y Return
- 25.39%
- LIC MF Small Cap Fund - Direct Growth
- ₹ 200
- ₹ 3700
- 25.14%
- Min SIP Investment Amt
- ₹ ₹ 200
- AUM (Cr.)
- ₹ 370
- 3Y Return
- 25.14%
- Min SIP Investment Amt
- ₹ ₹ 200
- AUM (Cr.)
- ₹ 370
- 3Y Return
- 25.14%
- Edelweiss Small Cap Fund - Direct Growth
- ₹ 100
- ₹ 4,2930
- 24.89%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 4,293
- 3Y Return
- 24.89%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 4,293
- 3Y Return
- 24.89%
FAQs
If you are looking for higher returns in a shorter period, you should invest in small-cap funds. Small-cap funds usually invest in the stocks of smaller companies that respond severely to market dynamics. As a result, these funds are high-risk. In the shorter term, the volatility may cause you to sustain losses in small-cap; however, if the fund performs well, the returns are exponential.
Yes. Small-cap funds have low liquidity, making them unsuitable for investing in if you intend to improve your liquidity through investment. Additionally, small-cap funds are highly volatile and may cause you to sustain high losses if the market underperforms. It is best to carefully select the small-cap fund you wish to invest in and plan your investment in it.
You can begin investing in small cap funds online through websites like 5Paisa. These websites provide you with the right market analytics and information that helps you judge fund performance yourself and take a call for your investment. They also help with predictions that help you plan your investments better.
You can also invest in the stock of small-cap companies by creating a Demat account; however, this method is riskier.
Experts believe that while small-cap funds are high-risk investments, you can invest in a few good small-cap funds for the long term instead of the short term. Long-term small cap funds can potentially outperform large and mid-cap funds, enabling you to get better returns and absorb market risks that tend to be highly effective to small cap.
On a long-term horizon, small-cap funds can perform better than other caps and give you great returns. With that said, on a 10-year timeline, you can dedicate 10% to 20% of your portfolio to small-cap funds, keeping the losses under control should the market become bearish.
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