Best Small & Midcap Equity Mutual Funds 2026

Updated on May 11, 2026 , 3502 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 (%)
Sundaram Small Cap Fund Growth	₹271.629 ↑ 1.40	₹2,983	6	2.4	11.8	20.1	18.9	0.4
TATA Mid Cap Growth Fund Growth	₹441.566 ↑ 1.62	₹4,993	-0.5	-1.4	9.2	20.1	17.2	5.8
Aditya Birla Sun Life Small Cap Fund Growth	₹88.961 ↑ 0.20	₹4,449	5	1.7	10.9	17.8	14.6	-3.7
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 13 May 26

Research Highlights & Commentary of 3 Funds showcased

Commentary	Sundaram Small Cap Fund	TATA Mid Cap Growth Fund	Aditya Birla Sun Life Small Cap Fund
Point 1	Bottom quartile AUM (₹2,983 Cr).	Highest AUM (₹4,993 Cr).	Lower mid AUM (₹4,449 Cr).
Point 2	Established history (21+ yrs).	Oldest track record among peers (31 yrs).	Established history (18+ yrs).
Point 3	Rating: 3★ (lower mid).	Rating: 2★ (bottom quartile).	Top rated.
Point 4	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.
Point 5	5Y return: 18.86% (upper mid).	5Y return: 17.17% (lower mid).	5Y return: 14.62% (bottom quartile).
Point 6	3Y return: 20.11% (upper mid).	3Y return: 20.08% (lower mid).	3Y return: 17.79% (bottom quartile).
Point 7	1Y return: 11.81% (upper mid).	1Y return: 9.17% (bottom quartile).	1Y return: 10.91% (lower mid).
Point 8	Alpha: 4.51 (upper mid).	Alpha: -0.90 (bottom quartile).	Alpha: 0.00 (lower mid).
Point 9	Sharpe: -0.20 (lower mid).	Sharpe: -0.18 (upper mid).	Sharpe: -0.21 (bottom quartile).
Point 10	Information ratio: -0.39 (lower mid).	Information ratio: -0.59 (bottom quartile).	Information ratio: 0.00 (upper mid).

Sundaram Small Cap Fund

Bottom quartile AUM (₹2,983 Cr).
Established history (21+ yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 18.86% (upper mid).
3Y return: 20.11% (upper mid).
1Y return: 11.81% (upper mid).
Alpha: 4.51 (upper mid).
Sharpe: -0.20 (lower mid).
Information ratio: -0.39 (lower mid).

TATA Mid Cap Growth Fund

Highest AUM (₹4,993 Cr).
Oldest track record among peers (31 yrs).
Rating: 2★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 17.17% (lower mid).
3Y return: 20.08% (lower mid).
1Y return: 9.17% (bottom quartile).
Alpha: -0.90 (bottom quartile).
Sharpe: -0.18 (upper mid).
Information ratio: -0.59 (bottom quartile).

Aditya Birla Sun Life Small Cap Fund

Lower mid AUM (₹4,449 Cr).
Established history (18+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 14.62% (bottom quartile).
3Y return: 17.79% (bottom quartile).
1Y return: 10.91% (lower mid).
Alpha: 0.00 (lower mid).
Sharpe: -0.21 (bottom quartile).
Information ratio: 0.00 (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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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. 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

Bottom quartile AUM (₹2,983 Cr).
Established history (21+ yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 18.86% (upper mid).
3Y return: 20.11% (upper mid).
1Y return: 11.81% (upper mid).
Alpha: 4.51 (upper mid).
Sharpe: -0.20 (lower mid).
Information ratio: -0.39 (lower mid).
Top sector: Consumer Cyclical.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~96%).
High-quality debt (AAA/AA ~100%).
Largest holding MTAR Technologies Ltd (~4.1%).

Below is the key information for Sundaram Small Cap Fund

Sundaram Small Cap Fund Growth
Launch Date	15 Feb 05
NAV (13 May 26)	₹271.629 ↑ 1.40 (0.52 %)
Net Assets (Cr)	₹2,983 on 31 Mar 26
Category	Equity - Small Cap
AMC	Sundaram Asset Management Company Ltd
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.94
Sharpe Ratio	-0.2
Information Ratio	-0.39
Alpha Ratio	4.51
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 ₹481,656.
Net Profit of ₹181,656 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 13 May 26

Duration	Returns
1 Month	7.8%
3 Month	6%
6 Month	2.4%
1 Year	11.8%
3 Year	20.1%
5 Year	18.9%
10 Year
15 Year
Since launch	16.8%

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	3.5 Yr.

Data below for Sundaram Small Cap Fund as on 31 Mar 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

2. TATA Mid Cap Growth Fund

To provide income distribution and / or medium to long term capital gains. Investments would be focused towards mid-cap stocks.

Research Highlights for TATA Mid Cap Growth Fund

Highest AUM (₹4,993 Cr).
Oldest track record among peers (31 yrs).
Rating: 2★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 17.17% (lower mid).
3Y return: 20.08% (lower mid).
1Y return: 9.17% (bottom quartile).
Alpha: -0.90 (bottom quartile).
Sharpe: -0.18 (upper mid).
Information ratio: -0.59 (bottom quartile).
Top sector: Financial Services.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~94%).
Largest holding Mankind Pharma Ltd (~3.2%).

Below is the key information for TATA Mid Cap Growth Fund

TATA Mid Cap Growth Fund Growth
Launch Date	1 Jul 94
NAV (13 May 26)	₹441.566 ↑ 1.62 (0.37 %)
Net Assets (Cr)	₹4,993 on 31 Mar 26
Category	Equity - Mid Cap
AMC	Tata Asset Management Limited
Rating	☆☆
Risk	Moderately High
Expense Ratio	1.88
Sharpe Ratio	-0.18
Information Ratio	-0.59
Alpha Ratio	-0.9
Min Investment	5,000
Min SIP Investment	150
Exit Load	0-365 Days (1%),365 Days and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Apr 21	₹10,000
30 Apr 22	₹12,046
30 Apr 23	₹12,572
30 Apr 24	₹19,642
30 Apr 25	₹20,147
30 Apr 26	₹22,200

TATA Mid Cap Growth 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 TATA Mid Cap Growth Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 13 May 26

Duration	Returns
1 Month	2.7%
3 Month	-0.5%
6 Month	-1.4%
1 Year	9.2%
3 Year	20.1%
5 Year	17.2%
10 Year
15 Year
Since launch	12.6%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	5.8%
2024	22.7%
2023	40.5%
2022	0.6%
2021	40%
2020	24.3%
2019	6.5%
2018	-13%
2017	49.8%
2016	-2.2%

Fund Manager information for TATA Mid Cap Growth Fund

Name	Since	Tenure
Satish Mishra	9 Mar 21	5.15 Yr.

Data below for TATA Mid Cap Growth Fund as on 31 Mar 26

Equity Sector Allocation

Sector	Value
Financial Services	24.02%
Industrials	14.73%
Consumer Cyclical	12.99%
Health Care	11.34%
Basic Materials	10.66%
Technology	6.12%
Communication Services	4.16%
Consumer Defensive	3.98%
Real Estate	2.75%
Utility	1.68%
Energy	1.2%

Asset Allocation

Asset Class	Value
Cash	6.37%
Equity	93.63%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Mankind Pharma Ltd (Healthcare) Equity, Since 31 Dec 25 \| MANKIND	3%	₹180 Cr	800,000
The Federal Bank Ltd (Financial Services) Equity, Since 31 May 18 \| FEDERALBNK	3%	₹172 Cr	6,000,000
Bharat Heavy Electricals Ltd (Industrials) Equity, Since 30 Sep 22 \| 500103	3%	₹163 Cr	4,618,139 ↑ 2,000,000
Indian Bank (Financial Services) Equity, Since 31 Oct 21 \| 532814	3%	₹156 Cr	1,835,455
IndusInd Bank Ltd (Financial Services) Equity, Since 31 Jan 26 \| INDUSINDBK	3%	₹156 Cr	1,700,000
AU Small Finance Bank Ltd (Financial Services) Equity, Since 30 Nov 24 \| 540611	3%	₹152 Cr	1,500,000
Max Financial Services Ltd (Financial Services) Equity, Since 30 Nov 23 \| 500271	3%	₹151 Cr	950,000
UPL Ltd (Basic Materials) Equity, Since 31 Oct 24 \| UPL	3%	₹148 Cr	2,300,000
Glenmark Pharmaceuticals Ltd (Healthcare) Equity, Since 31 May 25 \| 532296	3%	₹144 Cr	600,000
Marico Ltd (Consumer Defensive) Equity, Since 30 Sep 25 \| 531642	2%	₹136 Cr	1,750,000

3. Aditya Birla Sun Life Small Cap Fund

(Erstwhile Aditya Birla Sun Life Small & Midcap Fund)

An Open ended Small and Mid Cap Equity Scheme with an objective to generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities of companies considered to be small and midcap. The Scheme may also invest a certain portion of its corpus in fixed income securities including money market instruments, in order to meet liquidity requirements from time to time.

Research Highlights for Aditya Birla Sun Life Small Cap Fund

Lower mid AUM (₹4,449 Cr).
Established history (18+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 14.62% (bottom quartile).
3Y return: 17.79% (bottom quartile).
1Y return: 10.91% (lower mid).
Alpha: 0.00 (lower mid).
Sharpe: -0.21 (bottom quartile).
Information ratio: 0.00 (upper mid).
Top sector: Financial Services.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~93%).
Largest holding Navin Fluorine International Ltd (~3.0%).

Below is the key information for Aditya Birla Sun Life Small Cap Fund

Aditya Birla Sun Life Small Cap Fund Growth
Launch Date	31 May 07
NAV (13 May 26)	₹88.961 ↑ 0.20 (0.22 %)
Net Assets (Cr)	₹4,449 on 31 Mar 26
Category	Equity - Small Cap
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆☆☆
Risk	Moderately High
Expense Ratio	1.89
Sharpe Ratio	-0.21
Information Ratio	0
Alpha Ratio	0
Min Investment	1,000
Min SIP Investment	1,000
Exit Load	0-365 Days (1%),365 Days and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Apr 21	₹10,000
30 Apr 22	₹11,739
30 Apr 23	₹11,873
30 Apr 24	₹17,901
30 Apr 25	₹17,616
30 Apr 26	₹20,224

Aditya Birla Sun Life Small Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹436,710.
Net Profit of ₹136,710 Invest Now

Returns for Aditya Birla Sun Life 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 13 May 26

Duration	Returns
1 Month	7.3%
3 Month	5%
6 Month	1.7%
1 Year	10.9%
3 Year	17.8%
5 Year	14.6%
10 Year
15 Year
Since launch	12.2%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	-3.7%
2024	21.5%
2023	39.4%
2022	-6.5%
2021	51.4%
2020	19.8%
2019	-11.5%
2018	-22.6%
2017	56.7%
2016	9.7%

Fund Manager information for Aditya Birla Sun Life Small Cap Fund

Name	Since	Tenure
Abhinav Khandelwal	31 Oct 24	1.5 Yr.
Dhaval Joshi	21 Nov 22	3.44 Yr.

Data below for Aditya Birla Sun Life Small Cap Fund as on 31 Mar 26

Equity Sector Allocation

Sector	Value
Financial Services	20.97%
Consumer Cyclical	16.63%
Industrials	14.59%
Health Care	12.84%
Basic Materials	11.5%
Consumer Defensive	8.52%
Real Estate	4.06%
Technology	2.78%
Utility	1.57%

Asset Allocation

Asset Class	Value
Cash	6.55%
Equity	93.45%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Navin Fluorine International Ltd (Basic Materials) Equity, Since 31 Jul 20 \| NAVINFLUOR	3%	₹157 Cr	230,000
TD Power Systems Ltd (Industrials) Equity, Since 30 Jun 23 \| TDPOWERSYS	3%	₹151 Cr	1,312,944
Multi Commodity Exchange of India Ltd (Financial Services) Equity, Since 31 Dec 24 \| MCX	3%	₹142 Cr	478,000
Sai Life Sciences Ltd (Healthcare) Equity, Since 30 Jun 25 \| SAILIFE	3%	₹138 Cr	1,286,665
CCL Products (India) Ltd (Consumer Defensive) Equity, Since 31 May 20 \| CCL	2%	₹120 Cr	1,060,480 ↓ -18,345
PNB Housing Finance Ltd (Financial Services) Equity, Since 31 Aug 24 \| PNBHOUSING	2%	₹113 Cr	1,081,130
Radico Khaitan Ltd (Consumer Defensive) Equity, Since 31 May 20 \| RADICO	2%	₹112 Cr	327,373 ↑ 28,225
Arvind Ltd (Consumer Cyclical) Equity, Since 30 Nov 24 \| 500101	2%	₹105 Cr	2,642,013
Ujjivan Small Finance Bank Ltd Ordinary Shares (Financial Services) Equity, Since 31 Mar 25 \| UJJIVANSFB	2%	₹97 Cr	17,107,129
Shaily Engineering Plastics Ltd (Basic Materials) Equity, Since 31 Oct 25 \| 501423	2%	₹91 Cr	360,000 ↑ 55,000

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.