Best Small & Midcap Equity Mutual Funds 2026

Updated on July 20, 2026 , 3651 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 (%)	2025 (%)
BNP Paribas Mid Cap Fund Growth	₹111.27 ↓ -1.07	₹2,513	3.8	9.5	9.7	18.4	15.1	2.5
Sundaram Small Cap Fund Growth	₹285.209 ↓ -3.89	₹3,872	6.5	14.8	7.2	17.2	16.1	0.4
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Jul 26

Research Highlights & Commentary of 2 Funds showcased

Commentary	BNP Paribas Mid Cap Fund	Sundaram Small Cap Fund
Point 1	Bottom quartile AUM (₹2,513 Cr).	Highest AUM (₹3,872 Cr).
Point 2	Established history (20+ yrs).	Oldest track record among peers (21 yrs).
Point 3	Top rated.	Rating: 3★ (bottom quartile).
Point 4	Risk profile: High.	Risk profile: Moderately High.
Point 5	5Y return: 15.12% (bottom quartile).	5Y return: 16.12% (upper mid).
Point 6	3Y return: 18.37% (upper mid).	3Y return: 17.19% (bottom quartile).
Point 7	1Y return: 9.67% (upper mid).	1Y return: 7.23% (bottom quartile).
Point 8	Alpha: 3.32 (bottom quartile).	Alpha: 8.89 (upper mid).
Point 9	Sharpe: 0.22 (bottom quartile).	Sharpe: 0.25 (upper mid).
Point 10	Information ratio: -0.21 (bottom quartile).	Information ratio: -0.17 (upper mid).

BNP Paribas Mid Cap Fund

Bottom quartile AUM (₹2,513 Cr).
Established history (20+ yrs).
Top rated.
Risk profile: High.
5Y return: 15.12% (bottom quartile).
3Y return: 18.37% (upper mid).
1Y return: 9.67% (upper mid).
Alpha: 3.32 (bottom quartile).
Sharpe: 0.22 (bottom quartile).
Information ratio: -0.21 (bottom quartile).

Sundaram Small Cap Fund

Highest AUM (₹3,872 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 16.12% (upper mid).
3Y return: 17.19% (bottom quartile).
1Y return: 7.23% (bottom quartile).
Alpha: 8.89 (upper mid).
Sharpe: 0.25 (upper mid).
Information ratio: -0.17 (upper mid).

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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Location: Thane, Maharashtra, India
Experience: 10+ years in Mutual Fund distribution

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Market analysts tracking performance, macro trends, and sectors.
Data specialists processing NAVs, allocations, and risk metrics from Morning Star.

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Data sourcing: SEBI-registered fund houses & verified third-party provider Morning Star
Screening: Returns, manager track record, expenses, sector mix, risk-adjusted metrics.
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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. BNP Paribas Mid Cap Fund

The Investment objective of the scheme is to seek to generate long-term capital appreciation by investing primarily in companies with high growth opportunities in the middle and small capitalization segment, defi ned as ‘Future Leaders’. The fund will emphasize on companies that appear to offer opportunities for long-term growth and will be inclined towards companies that are driven by dynamic style of management and entrepreneurial fl air. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme does not guarantee/indicate any returns.

Research Highlights for BNP Paribas Mid Cap Fund

Bottom quartile AUM (₹2,513 Cr).
Established history (20+ yrs).
Top rated.
Risk profile: High.
5Y return: 15.12% (bottom quartile).
3Y return: 18.37% (upper mid).
1Y return: 9.67% (upper mid).
Alpha: 3.32 (bottom quartile).
Sharpe: 0.22 (bottom quartile).
Information ratio: -0.21 (bottom quartile).
Top sector: Financial Services.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~97%).
High-quality debt (AAA/AA ~100%).
Largest holding GE Vernova T&D India Ltd (~3.7%).

Below is the key information for BNP Paribas Mid Cap Fund

BNP Paribas Mid Cap Fund Growth
Launch Date	2 May 06
NAV (22 Jul 26)	₹111.27 ↓ -1.07 (-0.96 %)
Net Assets (Cr)	₹2,513 on 30 Jun 26
Category	Equity - Mid Cap
AMC	BNP Paribas Asset Mgmt India Pvt. Ltd
Rating	☆☆☆
Risk	High
Expense Ratio	2
Sharpe Ratio	0.22
Information Ratio	-0.21
Alpha Ratio	3.32
Min Investment	5,000
Min SIP Investment	300
Exit Load	0-12 Months (1%),12 Months and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Jun 21	₹10,000
30 Jun 22	₹9,871
30 Jun 23	₹12,323
30 Jun 24	₹18,874
30 Jun 25	₹19,294
30 Jun 26	₹20,879

BNP Paribas Mid Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹447,579.
Net Profit of ₹147,579 Invest Now

Returns for BNP Paribas Mid 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 22 Jul 26

Duration	Returns
1 Month	-0.4%
3 Month	3.8%
6 Month	9.5%
1 Year	9.7%
3 Year	18.4%
5 Year	15.1%
10 Year
15 Year
Since launch	12.7%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	2.5%
2024	28.5%
2023	32.6%
2022	4.7%
2021	41.5%
2020	23.1%
2019	5.2%
2018	-17.5%
2017	49%
2016	-1.2%

Fund Manager information for BNP Paribas Mid Cap Fund

Name	Since	Tenure
Rohan Korde	1 May 26	0.17 Yr.
Himanshu Singh	21 Oct 24	1.69 Yr.

Data below for BNP Paribas Mid Cap Fund as on 30 Jun 26

Equity Sector Allocation

Sector	Value
Financial Services	24.69%
Industrials	17.63%
Consumer Cyclical	15.09%
Basic Materials	12.07%
Health Care	11.9%
Technology	6.14%
Real Estate	2.44%
Consumer Defensive	2.19%
Energy	1.92%
Utility	1.91%
Communication Services	1.12%

Asset Allocation

Asset Class	Value
Cash	2.87%
Equity	97.11%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
GE Vernova T&D India Ltd (Industrials) Equity, Since 30 Sep 24 \| GVT&D	4%	₹90 Cr	175,000 ↓ -50,000
Bharat Heavy Electricals Ltd (Industrials) Equity, Since 31 Jan 24 \| BHEL	3%	₹83 Cr	2,000,000
Hitachi Energy India Ltd Ordinary Shares (Industrials) Equity, Since 31 Dec 22 \| POWERINDIA	3%	₹81 Cr	21,105 ↓ -2,350
BSE Ltd (Financial Services) Equity, Since 30 Nov 25 \| BSE	3%	₹70 Cr	168,000
Navin Fluorine International Ltd (Basic Materials) Equity, Since 30 Apr 23 \| NAVINFLUOR	3%	₹65 Cr	90,608 ↓ -5,000
Indian Bank (Financial Services) Equity, Since 30 Jun 21 \| INDIANB	3%	₹62 Cr	740,000
PB Fintech Ltd (Financial Services) Equity, Since 28 Feb 23 \| 543390	2%	₹59 Cr	348,500 ↑ 33,500
The Federal Bank Ltd (Financial Services) Equity, Since 31 Jul 16 \| FEDERALBNK	2%	₹58 Cr	2,000,000
Acutaas Chemicals Ltd (Basic Materials) Equity, Since 31 Oct 25 \| 543349	2%	₹53 Cr	170,466
National Aluminium Co Ltd (Basic Materials) Equity, Since 30 Apr 24 \| NATIONALUM	2%	₹51 Cr	1,200,000

2. 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 (₹3,872 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 16.12% (upper mid).
3Y return: 17.19% (bottom quartile).
1Y return: 7.23% (bottom quartile).
Alpha: 8.89 (upper mid).
Sharpe: 0.25 (upper mid).
Information ratio: -0.17 (upper mid).
Top sector: Consumer Cyclical.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~94%).
High-quality debt (AAA/AA ~100%).
Largest holding MTAR Technologies Ltd (~5.7%).

Below is the key information for Sundaram Small Cap Fund

Sundaram Small Cap Fund Growth
Launch Date	15 Feb 05
NAV (22 Jul 26)	₹285.209 ↓ -3.89 (-1.34 %)
Net Assets (Cr)	₹3,872 on 30 Jun 26
Category	Equity - Small Cap
AMC	Sundaram Asset Management Company Ltd
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.94
Sharpe Ratio	0.25
Information Ratio	-0.17
Alpha Ratio	8.89
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 Jun 21	₹10,000
30 Jun 22	₹10,058
30 Jun 23	₹13,324
30 Jun 24	₹19,270
30 Jun 25	₹20,299
30 Jun 26	₹22,202

Sundaram Small Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹458,689.
Net Profit of ₹158,689 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 22 Jul 26

Duration	Returns
1 Month	-1.1%
3 Month	6.5%
6 Month	14.8%
1 Year	7.2%
3 Year	17.2%
5 Year	16.1%
10 Year
15 Year
Since launch	16.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	0.4%
2024	19.1%
2023	45.3%
2022	-2.1%
2021	60.3%
2020	26.2%
2019	-6.1%
2018	-29.2%
2017	55.6%
2016	-0.1%

Fund Manager information for Sundaram Small Cap Fund

Name	Since	Tenure
Rohit Seksaria	1 Nov 22	3.67 Yr.
Shalav Saket	20 Mar 26	0.28 Yr.

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

Equity Sector Allocation

Sector	Value
Consumer Cyclical	20.24%
Financial Services	20.17%
Industrials	20.05%
Health Care	11.76%
Basic Materials	8.17%
Technology	4.19%
Communication Services	4.18%
Consumer Defensive	2.39%
Real Estate	1.81%
Utility	1.2%

Asset Allocation

Asset Class	Value
Cash	4.97%
Equity	94.17%
Debt	0.85%
Other	0%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
MTAR Technologies Ltd (Industrials) Equity, Since 31 Dec 24 \| MTARTECH	6%	₹209 Cr	264,884 ↓ -25,000
Aster DM Healthcare Ltd Ordinary Shares (Healthcare) Equity, Since 30 Nov 23 \| ASTERDM	3%	₹122 Cr	1,681,362
SJS Enterprises Ltd (Consumer Cyclical) Equity, Since 31 Aug 23 \| SJS	3%	₹122 Cr	577,256
Rategain Travel Technologies Ltd (Technology) Equity, Since 30 Jun 23 \| RATEGAIN	3%	₹115 Cr	1,534,556
PNB Housing Finance Ltd (Financial Services) Equity, Since 31 Jul 24 \| PNBHOUSING	3%	₹99 Cr	957,209
Craftsman Automation Ltd (Consumer Cyclical) Equity, Since 30 Jun 24 \| CRAFTSMAN	3%	₹96 Cr	105,565 ↓ -974
Eternal Ltd (Consumer Cyclical) Equity, Since 30 Nov 24 \| ETERNAL	2%	₹91 Cr	3,614,474 ↑ 152,705
Affle 3i Ltd (Communication Services) Equity, Since 31 May 21 \| AFFLE	2%	₹89 Cr	606,603 ↑ 12,325
E I D Parry India Ltd (Basic Materials) Equity, Since 31 Jul 24 \| EIDPARRY	2%	₹79 Cr	1,045,263
DCB Bank Ltd (Financial Services) Equity, Since 30 Sep 24 \| DCBBANK	2%	₹78 Cr	4,443,809

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.