Best Small & Midcap Equity Mutual Funds 2026

Updated on May 28, 2026 , 3544 views

Mid and small cap Mutual Funds are a well-known plan due to its potential of delivering good profits in the long-run. These funds are also considered as one of the best wealth creation tools for long-term investment goals. Investors can plan their various goals like Retirement planning, a child's higher education or a purchase of house/car, etc. Mid and Small cap funds are a type of Mutual Funds that invest in stocks of mid to small sized companies.

These funds are typically defined as firms with a market capitalization (MC=no of shares issued by the company X market price per share) of INR 1000- 500 Crore. Traditionally, mid-caps are mid-sized companies, which, if run well and have a good business strategy become tomorrow’s leaders or large-caps. In fact, mid-cap stocks outperformed both large cap and small cap stocks in the year 2015, due to lower interest rates, lower input cost, and improvement in capital reduction. The BSE mid-cap and BSE small-cap index surged 7.43% & 6.76%, respectively, whereas, BSE Sensex fell 5.03% during the same period of time.

Investors who are keen to invest in mid & small cap funds, below are the top performing funds with an AUM size of more than 2500 Cr.

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Fund Selection Methodology used to find 6 funds

Category: Equity
Sub-category: Mid%20Cap, Small%20Cap
AUM Range: 2500%20TO%205000 Cr
Sorted On : 3-year return (high to low)
Tags: fcpro
No Of Funds: 6

Top 6 Best Small & Midcap Funds To Invest In 2026

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
Sundaram Small Cap Fund Growth	₹276.149 ↓ -2.26	₹3,563	9.6	4.9	10	19.8	17.9	0.4
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 May 26

Research Highlights & Commentary of 1 Funds showcased

Commentary	Sundaram Small Cap Fund
Point 1	Highest AUM (₹3,563 Cr).
Point 2	Oldest track record among peers (21 yrs).
Point 3	Top rated.
Point 4	Risk profile: Moderately High.
Point 5	5Y return: 17.93% (top quartile).
Point 6	3Y return: 19.76% (top quartile).
Point 7	1Y return: 10.05% (top quartile).
Point 8	Alpha: 5.65 (top quartile).
Point 9	Sharpe: 0.48 (top quartile).
Point 10	Information ratio: -0.23 (top quartile).

Sundaram Small Cap Fund

Highest AUM (₹3,563 Cr).
Oldest track record among peers (21 yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 17.93% (top quartile).
3Y return: 19.76% (top quartile).
1Y return: 10.05% (top quartile).
Alpha: 5.65 (top quartile).
Sharpe: 0.48 (top quartile).
Information ratio: -0.23 (top quartile).

About the Fincash Research Team

At Fincash, our mission is to help investors make informed, confident decisions. With over 10 years in Mutual Fund distribution, our team blends deep industry expertise with a commitment to transparency, accuracy, and investor education.

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AMFI Registration No.: 112358
MCA CIN: U74999MH2016PTC282153
Location: Thane, Maharashtra, India
Experience: 10+ years in Mutual Fund distribution

Our Expertise

Certified Mutual Fund Distributors with hands-on advisory experience.
Market analysts tracking performance, macro trends, and sectors.
Data specialists processing NAVs, allocations, and risk metrics from Morning Star.

Our Research Process

Data sourcing: SEBI-registered fund houses & verified third-party provider Morning Star
Screening: Returns, manager track record, expenses, sector mix, risk-adjusted metrics.
Expert review: Senior team members review every article and list for accuracy.
Updates: Regular refreshes so performance data reflects current market conditions.

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Disclaimer

Content is for educational and informational purposes only and is not investment advice. Please consider your risk profile and consult a financial advisor before investing.

*Above list of funds is having Net Assets more than 2,500 Crores. Sorted on Last 3 Year Return.

1. Sundaram Small Cap Fund

(Erstwhile Sundaram SMILE Fund)

To primarily achieve capital appreciation by investing in diversified stocks that are generally termed as small and mid-caps and by investing in other equities.

Research Highlights for Sundaram Small Cap Fund

Highest AUM (₹3,563 Cr).
Oldest track record among peers (21 yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 17.93% (top quartile).
3Y return: 19.76% (top quartile).
1Y return: 10.05% (top quartile).
Alpha: 5.65 (top quartile).
Sharpe: 0.48 (top quartile).
Information ratio: -0.23 (top quartile).

Below is the key information for Sundaram Small Cap Fund

Sundaram Small Cap Fund Growth
Launch Date	15 Feb 05
NAV (29 May 26)	₹276.149 ↓ -2.26 (-0.81 %)
Net Assets (Cr)	₹3,563 on 30 Apr 26
Category	Equity - Small Cap
AMC	Sundaram Asset Management Company Ltd
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.94
Sharpe Ratio	0.48
Information Ratio	-0.23
Alpha Ratio	5.65
Min Investment	5,000
Min SIP Investment	100
Exit Load	0-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Apr 21	₹10,000
30 Apr 22	₹12,810
30 Apr 23	₹13,645
30 Apr 24	₹20,639
30 Apr 25	₹20,652
30 Apr 26	₹23,903

Sundaram Small Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹470,047.
Net Profit of ₹170,047 Invest Now

Returns for Sundaram Small Cap Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 May 26

Duration	Returns
1 Month	3.3%
3 Month	9.6%
6 Month	4.9%
1 Year	10%
3 Year	19.8%
5 Year	17.9%
10 Year
15 Year
Since launch	16.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	0.4%
2023	19.1%
2022	45.3%
2021	-2.1%
2020	60.3%
2019	26.2%
2018	-6.1%
2017	-29.2%
2016	55.6%
2015	-0.1%

Fund Manager information for Sundaram Small Cap Fund

Name	Since	Tenure
Rohit Seksaria	1 Nov 22	3.5 Yr.

Data below for Sundaram Small Cap Fund as on 30 Apr 26

Equity Sector Allocation

Sector	Value
Consumer Cyclical	21.48%
Industrials	19.68%
Financial Services	18.97%
Health Care	12.65%
Basic Materials	8.52%
Communication Services	4.99%
Technology	3.5%
Consumer Defensive	2.86%
Real Estate	2.1%
Utility	1%

Asset Allocation

Asset Class	Value
Cash	4.15%
Equity	95.75%
Debt	0.1%
Other	0%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
MTAR Technologies Ltd (Industrials) Equity, Since 31 Dec 24 \| MTARTECH	4%	₹121 Cr	349,511 ↓ -3,078
Aster DM Healthcare Ltd Ordinary Shares (Healthcare) Equity, Since 30 Nov 23 \| ASTERDM	4%	₹113 Cr	1,681,362
SJS Enterprises Ltd (Consumer Cyclical) Equity, Since 31 Aug 23 \| 543387	3%	₹90 Cr	577,256
Affle 3i Ltd (Communication Services) Equity, Since 31 May 21 \| AFFLE	3%	₹86 Cr	594,278 ↑ 24,633
E I D Parry India Ltd (Basic Materials) Equity, Since 31 Jul 24 \| EIDPARRY	3%	₹81 Cr	1,045,263 ↑ 38,877
Eternal Ltd (Consumer Cyclical) Equity, Since 30 Nov 24 \| 543320	3%	₹76 Cr	3,324,013 ↑ 481,686
PNB Housing Finance Ltd (Financial Services) Equity, Since 31 Jul 24 \| PNBHOUSING	3%	₹75 Cr	992,680
Craftsman Automation Ltd (Consumer Cyclical) Equity, Since 30 Jun 24 \| CRAFTSMAN	2%	₹74 Cr	106,539
DCB Bank Ltd (Financial Services) Equity, Since 30 Sep 24 \| DCBBANK	2%	₹70 Cr	4,443,809
Rategain Travel Technologies Ltd (Technology) Equity, Since 30 Jun 23 \| 543417	2%	₹67 Cr	1,534,556 ↑ 32,858

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.