Top 10 Small Cap Funds in India

 

Top 10 Small-Cap Funds (India)

Here are funds that frequently show up at the top of performance lists with strong 5-year and longer-term returns:

FundKey Highlights
Quant Small Cap FundAmong the best performers: ~44.85% 5-yr annualised return as of July 2025. Angel One+2Moneycontrol+2
Nippon India Small Cap FundLarge AUM, ~33-40% 5-yr returns in many lists. Scripbox+2Angel One+2
Bandhan Small Cap Fund~36%+ 5-yr returns in some lists. Angel One+1
HSBC Small Cap Fund~35% 5-yr returns based on recent data. Angel One
HDFC Small Cap FundStrong performance over 5-yr, good name in the category. Scripbox+1
Franklin India Smaller Companies FundGood 5-yr returns (~34-36%) in many rankings. Angel One
Edelweiss Small Cap FundIncluded in several “top 10 small cap” lists for returns. mint+1
Tata Small Cap FundGood 5-yr growth, more moderate size. Moneycontrol+1
Canara Robeco Small Cap FundProvides a slightly different flavour; solid performance. Moneycontrol
Kotak Small Cap FundAlso features in top funds for 10-yr rolling returns; good option for long term. Value Research Online

🔍 Some Key Things to Check Before You Pick

When narrowing down your final choice, pay attention to:

  • 5-yr and 10-yr annualised returns: Longer term gives more confidence (see Kotak, Nippon, etc).

  • Expense ratio (TER): Lower is better, especially for active small-cap funds.

  • AUM (Fund size): Very large size may reduce flexibility in small-cap stocks; smaller size might have higher risk.

  • Fund Manager / Team: Experience in small-cap segment crucial.

  • Risk / Volatility: Small-cap funds can swing widely in downturns.

  • Your horizon & risk profile: These funds suit 7+ years horizon and higher risk tolerance.

  • Overlap with your existing portfolio: If you already have large/mid-cap funds, adding a small cap should diversify rather than double up.

  • Direct plan vs regular plan: Direct plan has lower fees.

  • Portfolio holdings & strategy: Are they chasing momentum, or focusing on quality small-caps?

  • Tax / exit implications: Equity funds in India are taxed differently depending on holding period.

Comments

Post a Comment

Popular posts from this blog

The best Flexicap funds in India

  When analysing Flexi-Cap mutual funds in India (i.e., funds that can invest across large-, mid- and small‐cap stocks) here are some of the top picks as of 2025, plus some key criteria / caveats you should use to pick one that fits your goals. Important disclaimer : This is not investment advice. You should check current data, expense ratios, risk levels, your investment horizon & tax implications, and link up with a SEBI-registered advisor where appropriate.  What makes a good Flexi-Cap fund Here are features to look for: Flexibility across market-caps: Flexi‐cap funds are allowed to invest in large, mid and small caps, giving them a broad opportunity set. Unstop +2 Upstox - Online Stock and Share Trading +2 Strong historical returns (3-yr, 5-yr, 10-yr) and good risk-adjusted metrics (Sharpe ratio, downside protection) rather than just past high returns. Reasonable AUM (so fund size is manageable), and a fund manager/team with good track record. Ex...
Read more

Guy Spier - Investment Lessons

 Guy Spier, author of The Education of a Value Investor , is a successful value investor who draws much of his investment philosophy from Warren Buffett and Charlie Munger. However, Spier has also developed his own unique approach over time. Here’s a summary of his investment philosophy: 1. Value Investing At the core of Spier’s philosophy is value investing, which involves buying stocks or companies that are undervalued by the market. Spier looks for companies with a margin of safety—where the price is below the intrinsic value. This approach is inspired by Benjamin Graham’s principles, where the focus is on buying high-quality businesses at a discount. Key Principle: Buy stocks for less than their intrinsic value to limit downside risk and allow for long-term gains. 2. Long-Term Focus Spier emphasizes patience and long-term thinking. Similar to Buffett and Munger, he believes in holding investments for the long run rather than frequently trading or reacting to short-term market ...
Read more

Balanced Advantage Funds

Balanced Advantage Funds, also known as Dynamic Asset Allocation Funds, are a category of mutual funds that aim to provide investors with a dynamic mix of equity and debt instruments based on market conditions. These funds automatically adjust their asset allocation between equities and debt, seeking to optimize returns while managing risk. The primary objective is to maintain a balance between potential capital appreciation and capital preservation. Here are some key features of Balanced Advantage Funds: Dynamic Asset Allocation: These funds have the flexibility to dynamically allocate assets between equity and debt based on certain predefined parameters or models. The asset allocation may be adjusted based on market valuations, economic indicators, or other quantitative factors. Risk Management: The dynamic nature of asset allocation allows these funds to respond to changing market conditions. For example, if equity markets are perceived to be overvalued, the fund manager may reduce ...
Read more