10 Best Small Cap Mutual Funds 2026

Updated on May 6, 2026 , 84956 views

Small caps are typically defined as firms with a market capitalization (MC=no of shares issued by the company X market price per share) of less than INR 500 Crore.

Small cap companies are young firms which have a great potential for sustainable growth in the long run. But, the risk of failure is higher with small caps compared to large and mid-cap companies.

Looking for Best Small Cap Mutual Funds? Well, small-cap funds are among one of the best wealth creation tools for long-term Financial goals. These financial goals may include child’s education, Retirement planning, etc. However, small-cap funds help to diversify portfolios and investors can take a small allocation (5-10%) in the overall Portfolio which can outperform over long investment period.

What are Small Cap Mutual Funds?

Small-caps are defined as "251st company onwards in terms of full market capitalization". As per norms, the portfolio of small-cap funds should have at least 65 percent of its total assets in small-cap stocks. Investors wanting to maximise their returns in the long-run, and who have a high-risk appetite, can plan their investments in small-cap funds. One should be able to tolerate Volatility of small-caps. These funds can rise the most in a bull market and can also suffer the steepest falls in a bear market. To gain optimal returns, an investor should at least invest for more than three-five years.

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Why Should you Invest in Small Cap Funds?

Some of the benefits of investing in a small-cap fund are:

Small caps tend to be more flexible than the large caps. Smaller companies can adapt changes quicker than the larger companies, hence they can show explosive growth
At times, Small cap funds tend to perform better than the Large cap funds, but their volatility can be much higher
Since these are the companies at their early stage of development, they can grow rapidly
Small cap stocks are priced lower than mid cap and large cap stocks
With high risk comes the potential of making high returns

Fund Selection Methodology used to Find 10 Funds

Category: Equity
Sub-category: Small%20Cap
AUM Range: 100 Cr
Sorted On : 5-year return (high to low)
No Of Funds: 10

Top and Best Small-Cap Funds to Consider 2026

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
Nippon India Small Cap Fund Growth	₹175.952 ↓ -0.26	₹61,809	100	9.1	4.3	15.2	21.6	22.6	-4.7
Franklin India Smaller Companies Fund Growth	₹175.36 ↓ -0.50	₹11,724	500	9.1	2.9	10.9	19.6	20.3	-8.4
DSP Small Cap Fund Growth	₹208.802 ↓ -0.18	₹15,300	500	9.1	7	22.5	21.7	20	-2.8
IDBI Small Cap Fund Growth	₹32.3802 ↑ 0.03	₹552	500	13.6	7.2	18.9	20.5	19.7	-13.4
Sundaram Small Cap Fund Growth	₹279.716 ↑ 0.38	₹2,983	100	9.6	5.8	20.8	21.4	19.7	0.4
HDFC Small Cap Fund Growth	₹137.088 ↑ 1.05	₹33,724	300	1.5	-3.5	12.5	17.2	19.4	-0.6
ICICI Prudential Smallcap Fund Growth	₹87.1 ↑ 0.03	₹7,538	100	3.7	0.4	11.2	16.3	18.2	-0.4
Kotak Small Cap Fund Growth	₹259.001 ↑ 0.34	₹15,157	1,000	7.9	0.6	9.7	16	15.8	-9.1
Aditya Birla Sun Life Small Cap Fund Growth	₹92.103 ↓ -0.03	₹4,449	1,000	9.4	5.4	19.6	19.7	15.4	-3.7
SBI Small Cap Fund Growth	₹170.917 ↓ -0.52	₹32,286	500	6.4	-0.6	7.8	14.1	15.3	-4.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 May 26

Research Highlights & Commentary of 10 Funds showcased

Commentary	Nippon India Small Cap Fund	Franklin India Smaller Companies Fund	DSP Small Cap Fund	IDBI Small Cap Fund	Sundaram Small Cap Fund	HDFC Small Cap Fund	ICICI Prudential Smallcap Fund	Kotak Small Cap Fund	Aditya Birla Sun Life Small Cap Fund	SBI Small Cap Fund
Point 1	Highest AUM (₹61,809 Cr).	Lower mid AUM (₹11,724 Cr).	Upper mid AUM (₹15,300 Cr).	Bottom quartile AUM (₹552 Cr).	Bottom quartile AUM (₹2,983 Cr).	Top quartile AUM (₹33,724 Cr).	Lower mid AUM (₹7,538 Cr).	Upper mid AUM (₹15,157 Cr).	Bottom quartile AUM (₹4,449 Cr).	Upper mid AUM (₹32,286 Cr).
Point 2	Established history (15+ yrs).	Established history (20+ yrs).	Established history (18+ yrs).	Established history (8+ yrs).	Oldest track record among peers (21 yrs).	Established history (18+ yrs).	Established history (18+ yrs).	Established history (21+ yrs).	Established history (18+ yrs).	Established history (16+ yrs).
Point 3	Rating: 4★ (upper mid).	Rating: 4★ (upper mid).	Rating: 4★ (upper mid).	Not Rated.	Rating: 3★ (lower mid).	Rating: 4★ (lower mid).	Rating: 3★ (bottom quartile).	Rating: 3★ (bottom quartile).	Top rated.	Rating: 5★ (top quartile).
Point 4	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.
Point 5	5Y return: 22.65% (top quartile).	5Y return: 20.33% (top quartile).	5Y return: 20.03% (upper mid).	5Y return: 19.75% (upper mid).	5Y return: 19.71% (upper mid).	5Y return: 19.43% (lower mid).	5Y return: 18.15% (lower mid).	5Y return: 15.82% (bottom quartile).	5Y return: 15.43% (bottom quartile).	5Y return: 15.27% (bottom quartile).
Point 6	3Y return: 21.60% (top quartile).	3Y return: 19.61% (lower mid).	3Y return: 21.65% (top quartile).	3Y return: 20.47% (upper mid).	3Y return: 21.42% (upper mid).	3Y return: 17.21% (lower mid).	3Y return: 16.34% (bottom quartile).	3Y return: 16.01% (bottom quartile).	3Y return: 19.72% (upper mid).	3Y return: 14.10% (bottom quartile).
Point 7	1Y return: 15.22% (upper mid).	1Y return: 10.93% (bottom quartile).	1Y return: 22.50% (top quartile).	1Y return: 18.94% (upper mid).	1Y return: 20.85% (top quartile).	1Y return: 12.51% (lower mid).	1Y return: 11.21% (lower mid).	1Y return: 9.74% (bottom quartile).	1Y return: 19.63% (upper mid).	1Y return: 7.76% (bottom quartile).
Point 8	Alpha: 0.92 (top quartile).	Alpha: -1.36 (bottom quartile).	Alpha: 0.00 (upper mid).	Alpha: -4.18 (bottom quartile).	Alpha: 4.51 (top quartile).	Alpha: 0.00 (upper mid).	Alpha: -0.02 (lower mid).	Alpha: -4.26 (bottom quartile).	Alpha: 0.00 (upper mid).	Alpha: 0.00 (lower mid).
Point 9	Sharpe: -0.42 (upper mid).	Sharpe: -0.55 (lower mid).	Sharpe: -0.05 (top quartile).	Sharpe: -0.75 (bottom quartile).	Sharpe: -0.20 (top quartile).	Sharpe: -0.38 (upper mid).	Sharpe: -0.46 (lower mid).	Sharpe: -0.72 (bottom quartile).	Sharpe: -0.21 (upper mid).	Sharpe: -0.79 (bottom quartile).
Point 10	Information ratio: -0.21 (upper mid).	Information ratio: -0.65 (bottom quartile).	Information ratio: 0.00 (top quartile).	Information ratio: -0.61 (lower mid).	Information ratio: -0.39 (lower mid).	Information ratio: 0.00 (top quartile).	Information ratio: -0.83 (bottom quartile).	Information ratio: -0.99 (bottom quartile).	Information ratio: 0.00 (upper mid).	Information ratio: 0.00 (upper mid).

Nippon India Small Cap Fund

Highest AUM (₹61,809 Cr).
Established history (15+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 22.65% (top quartile).
3Y return: 21.60% (top quartile).
1Y return: 15.22% (upper mid).
Alpha: 0.92 (top quartile).
Sharpe: -0.42 (upper mid).
Information ratio: -0.21 (upper mid).

Franklin India Smaller Companies Fund

Lower mid AUM (₹11,724 Cr).
Established history (20+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 20.33% (top quartile).
3Y return: 19.61% (lower mid).
1Y return: 10.93% (bottom quartile).
Alpha: -1.36 (bottom quartile).
Sharpe: -0.55 (lower mid).
Information ratio: -0.65 (bottom quartile).

DSP Small Cap Fund

Upper mid AUM (₹15,300 Cr).
Established history (18+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 20.03% (upper mid).
3Y return: 21.65% (top quartile).
1Y return: 22.50% (top quartile).
Alpha: 0.00 (upper mid).
Sharpe: -0.05 (top quartile).
Information ratio: 0.00 (top quartile).

IDBI Small Cap Fund

Bottom quartile AUM (₹552 Cr).
Established history (8+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 19.75% (upper mid).
3Y return: 20.47% (upper mid).
1Y return: 18.94% (upper mid).
Alpha: -4.18 (bottom quartile).
Sharpe: -0.75 (bottom quartile).
Information ratio: -0.61 (lower mid).

Sundaram Small Cap Fund

Bottom quartile AUM (₹2,983 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 19.71% (upper mid).
3Y return: 21.42% (upper mid).
1Y return: 20.85% (top quartile).
Alpha: 4.51 (top quartile).
Sharpe: -0.20 (top quartile).
Information ratio: -0.39 (lower mid).

HDFC Small Cap Fund

Top quartile AUM (₹33,724 Cr).
Established history (18+ yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately High.
5Y return: 19.43% (lower mid).
3Y return: 17.21% (lower mid).
1Y return: 12.51% (lower mid).
Alpha: 0.00 (upper mid).
Sharpe: -0.38 (upper mid).
Information ratio: 0.00 (top quartile).

ICICI Prudential Smallcap Fund

Lower mid AUM (₹7,538 Cr).
Established history (18+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 18.15% (lower mid).
3Y return: 16.34% (bottom quartile).
1Y return: 11.21% (lower mid).
Alpha: -0.02 (lower mid).
Sharpe: -0.46 (lower mid).
Information ratio: -0.83 (bottom quartile).

Kotak Small Cap Fund

Upper mid AUM (₹15,157 Cr).
Established history (21+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 15.82% (bottom quartile).
3Y return: 16.01% (bottom quartile).
1Y return: 9.74% (bottom quartile).
Alpha: -4.26 (bottom quartile).
Sharpe: -0.72 (bottom quartile).
Information ratio: -0.99 (bottom quartile).

Aditya Birla Sun Life Small Cap Fund

Bottom quartile AUM (₹4,449 Cr).
Established history (18+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 15.43% (bottom quartile).
3Y return: 19.72% (upper mid).
1Y return: 19.63% (upper mid).
Alpha: 0.00 (upper mid).
Sharpe: -0.21 (upper mid).
Information ratio: 0.00 (upper mid).

SBI Small Cap Fund

Upper mid AUM (₹32,286 Cr).
Established history (16+ yrs).
Rating: 5★ (top quartile).
Risk profile: Moderately High.
5Y return: 15.27% (bottom quartile).
3Y return: 14.10% (bottom quartile).
1Y return: 7.76% (bottom quartile).
Alpha: 0.00 (lower mid).
Sharpe: -0.79 (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.

Who We Are

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.

Why Trust Us

Regulated & compliant: AMFI-registered and MCA-incorporated.
Investor-first: No pay-to-promote lists; suitability and performance drive coverage.
Education-focused: We simplify complex concepts for everyday investors.

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.

All the funds mentioned above are ideal, we are giving you detailed analysis of 5 funds.

1. Nippon India Small Cap Fund

The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies and the secondary objective is to generate consistent returns by investing in debt and money market securities.

Research Highlights for Nippon India Small Cap Fund

Highest AUM (₹61,809 Cr).
Established history (15+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 22.65% (top quartile).
3Y return: 21.60% (upper mid).
1Y return: 15.22% (bottom quartile).
Alpha: 0.92 (upper mid).
Sharpe: -0.42 (lower mid).
Information ratio: -0.21 (upper mid).
Top sector: Industrials.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~96%).
High-quality debt (AAA/AA ~100%).
Largest holding Multi Commodity Exchange of India Ltd (~2.1%).

Below is the key information for Nippon India Small Cap Fund

Nippon India Small Cap Fund Growth
Launch Date	16 Sep 10
NAV (08 May 26)	₹175.952 ↓ -0.26 (-0.15 %)
Net Assets (Cr)	₹61,809 on 31 Mar 26
Category	Equity - Small Cap
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.44
Sharpe Ratio	-0.42
Information Ratio	-0.21
Alpha Ratio	0.92
Min Investment	5,000
Min SIP Investment	100
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Apr 21	₹10,000
30 Apr 22	₹13,940
30 Apr 23	₹15,417
30 Apr 24	₹24,830
30 Apr 25	₹24,849
30 Apr 26	₹27,423

Nippon India Small Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹530,691.
Net Profit of ₹230,691 Invest Now

Returns for Nippon India 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 8 May 26

Duration	Returns
1 Month	11.5%
3 Month	9.1%
6 Month	4.3%
1 Year	15.2%
3 Year	21.6%
5 Year	22.6%
10 Year
15 Year
Since launch	20.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	-4.7%
2023	26.1%
2022	48.9%
2021	6.5%
2020	74.3%
2019	29.2%
2018	-2.5%
2017	-16.7%
2016	63%
2015	5.6%

Fund Manager information for Nippon India Small Cap Fund

Name	Since	Tenure
Samir Rachh	2 Jan 17	9.25 Yr.
Kinjal Desai	25 May 18	7.86 Yr.
Amber Singhania	11 Mar 26	0.06 Yr.

Data below for Nippon India Small Cap Fund as on 31 Mar 26

Equity Sector Allocation

Sector	Value
Industrials	22.21%
Financial Services	15.35%
Consumer Cyclical	14.04%
Basic Materials	11.29%
Consumer Defensive	10.12%
Health Care	9.73%
Technology	7.12%
Utility	3.51%
Communication Services	1.04%
Real Estate	0.84%
Energy	0.78%

Asset Allocation

Asset Class	Value
Cash	3.97%
Equity	96.03%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Multi Commodity Exchange of India Ltd (Financial Services) Equity, Since 28 Feb 21 \| MCX	2%	₹1,278 Cr	5,350,645 ↓ -2,649,355
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 22 \| HDFCBANK	2%	₹1,119 Cr	15,300,000
Karur Vysya Bank Ltd (Financial Services) Equity, Since 28 Feb 17 \| 590003	1%	₹923 Cr	31,907,252
Apar Industries Ltd (Industrials) Equity, Since 31 Mar 17 \| APARINDS	1%	₹869 Cr	879,502
TD Power Systems Ltd (Industrials) Equity, Since 31 Dec 15 \| TDPOWERSYS	1%	₹830 Cr	9,753,276
Bharat Heavy Electricals Ltd (Industrials) Equity, Since 30 Sep 22 \| 500103	1%	₹798 Cr	32,507,422 ↑ 3,000,000
State Bank of India (Financial Services) Equity, Since 31 Oct 19 \| SBIN	1%	₹784 Cr	8,000,000
Infosys Ltd (Technology) Equity, Since 28 Feb 26 \| INFY	1%	₹750 Cr	6,000,000 ↑ 4,000,000
Zydus Wellness Ltd (Consumer Defensive) Equity, Since 31 Aug 16 \| ZYDUSWELL	1%	₹731 Cr	17,144,089 ↑ 11,668
NLC India Ltd (Utilities) Equity, Since 31 Oct 22 \| 513683	1%	₹725 Cr	26,990,331

2. Franklin India Smaller Companies Fund

The Fund seeks to provide long-term capital appreciation by investing in mid and small cap companies.

Research Highlights for Franklin India Smaller Companies Fund

Lower mid AUM (₹11,724 Cr).
Established history (20+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 20.33% (upper mid).
3Y return: 19.61% (bottom quartile).
1Y return: 10.93% (bottom quartile).
Alpha: -1.36 (bottom quartile).
Sharpe: -0.55 (bottom quartile).
Information ratio: -0.65 (bottom quartile).
Top sector: Consumer Cyclical.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~93%).
High-quality debt (AAA/AA ~100%).
Largest holding Syrma SGS Technology Ltd (~2.5%).

Below is the key information for Franklin India Smaller Companies Fund

Franklin India Smaller Companies Fund Growth
Launch Date	13 Jan 06
NAV (08 May 26)	₹175.36 ↓ -0.50 (-0.29 %)
Net Assets (Cr)	₹11,724 on 31 Mar 26
Category	Equity - Small Cap
AMC	Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.72
Sharpe Ratio	-0.55
Information Ratio	-0.65
Alpha Ratio	-1.36
Min Investment	5,000
Min SIP Investment	500
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
30 Apr 21	₹10,000
30 Apr 22	₹13,110
30 Apr 23	₹14,641
30 Apr 24	₹23,522
30 Apr 25	₹23,078
30 Apr 26	₹24,888

Franklin India Smaller Companies Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹505,644.
Net Profit of ₹205,644 Invest Now

Returns for Franklin India Smaller Companies Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 May 26

Duration	Returns
1 Month	11%
3 Month	9.1%
6 Month	2.9%
1 Year	10.9%
3 Year	19.6%
5 Year	20.3%
10 Year
15 Year
Since launch	15.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	-8.4%
2023	23.2%
2022	52.1%
2021	3.6%
2020	56.4%
2019	18.7%
2018	-5%
2017	-17.4%
2016	43.5%
2015	10.2%

Fund Manager information for Franklin India Smaller Companies Fund

Name	Since	Tenure
R. Janakiraman	1 Feb 11	15.17 Yr.
Sandeep Manam	18 Oct 21	4.45 Yr.
Akhil Kalluri	8 Sep 22	3.56 Yr.

Data below for Franklin India Smaller Companies Fund as on 31 Mar 26

Equity Sector Allocation

Sector	Value
Consumer Cyclical	18.2%
Financial Services	18.2%
Industrials	18.18%
Basic Materials	10.17%
Health Care	9.95%
Technology	8.1%
Real Estate	3.71%
Consumer Defensive	3.44%
Utility	3.41%

Asset Allocation

Asset Class	Value
Cash	6.65%
Equity	93.35%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Syrma SGS Technology Ltd (Technology) Equity, Since 31 Aug 22 \| SYRMA	2%	₹320 Cr	3,895,864
Equitas Small Finance Bank Ltd Ordinary Shares (Financial Services) Equity, Since 31 Oct 20 \| EQUITASBNK	2%	₹309 Cr	48,064,081
Aster DM Healthcare Ltd Ordinary Shares (Healthcare) Equity, Since 31 Jul 23 \| ASTERDM	2%	₹306 Cr	4,675,704
Brigade Enterprises Ltd (Real Estate) Equity, Since 30 Jun 14 \| BRIGADE	2%	₹269 Cr	3,868,691
CCL Products (India) Ltd (Consumer Defensive) Equity, Since 30 Apr 19 \| CCL	2%	₹266 Cr	2,616,654 ↓ -393,625
Kirloskar Oil Engines Ltd (Industrials) Equity, Since 30 Nov 22 \| KIRLOSENG	2%	₹258 Cr	1,850,935 ↓ -250,000
Eris Lifesciences Ltd Registered Shs (Healthcare) Equity, Since 30 Sep 19 \| ERIS	2%	₹254 Cr	1,866,828
Kajaria Ceramics Ltd (Industrials) Equity, Since 30 Apr 25 \| KAJARIACER	2%	₹239 Cr	2,499,656 ↑ 400,000
DCB Bank Ltd (Financial Services) Equity, Since 31 May 18 \| DCBBANK	2%	₹226 Cr	12,199,095
Deepak Nitrite Ltd (Basic Materials) Equity, Since 31 Jan 16 \| DEEPAKNTR	2%	₹219 Cr	1,387,967

3. DSP Small Cap Fund

(Erstwhile DSP BlackRock Micro Cap Fund)

The primary investment objective is to seek to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of small cap companies. From time to time, the fund manager will also seek participation in other equity and equity related securities to achieve optimal portfolio construction. There is no assurance that the investment objective of the Scheme will be realized

Research Highlights for DSP Small Cap Fund

Upper mid AUM (₹15,300 Cr).
Established history (18+ yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately High.
5Y return: 20.03% (lower mid).
3Y return: 21.65% (top quartile).
1Y return: 22.50% (top quartile).
Alpha: 0.00 (lower mid).
Sharpe: -0.05 (top quartile).
Information ratio: 0.00 (top quartile).
Higher exposure to Consumer Cyclical vs peer median.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~93%).
Largest holding Lumax Auto Technologies Ltd (~6.2%).

Below is the key information for DSP Small Cap Fund

DSP Small Cap Fund Growth
Launch Date	14 Jun 07
NAV (08 May 26)	₹208.802 ↓ -0.18 (-0.09 %)
Net Assets (Cr)	₹15,300 on 31 Mar 26
Category	Equity - Small Cap
AMC	DSP BlackRock Invmt Managers Pvt. Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.72
Sharpe Ratio	-0.05
Information Ratio	0
Alpha Ratio	0
Min Investment	1,000
Min SIP Investment	500
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	₹13,648
30 Apr 23	₹13,902
30 Apr 24	₹20,575
30 Apr 25	₹20,580
30 Apr 26	₹24,572

DSP Small Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹505,644.
Net Profit of ₹205,644 Invest Now

Returns for DSP 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 8 May 26

Duration	Returns
1 Month	9.7%
3 Month	9.1%
6 Month	7%
1 Year	22.5%
3 Year	21.7%
5 Year	20%
10 Year
15 Year
Since launch	17.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	-2.8%
2023	25.6%
2022	41.2%
2021	0.5%
2020	58.9%
2019	33.1%
2018	0.7%
2017	-25.5%
2016	42.8%
2015	12.7%

Fund Manager information for DSP Small Cap Fund

Name	Since	Tenure
Vinit Sambre	21 Jun 10	15.79 Yr.

Data below for DSP Small Cap Fund as on 31 Mar 26

Equity Sector Allocation

Sector	Value
Consumer Cyclical	33.83%
Basic Materials	16.53%
Industrials	15.06%
Health Care	9.95%
Financial Services	8.14%
Consumer Defensive	7.04%
Technology	2.32%
Communication Services	0.5%
Utility	0.03%

Asset Allocation

Asset Class	Value
Cash	6.6%
Equity	93.4%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Lumax Auto Technologies Ltd (Consumer Cyclical) Equity, Since 30 Jun 18 \| LUMAXTECH	6%	₹943 Cr	6,196,634
Thangamayil Jewellery Ltd (Consumer Cyclical) Equity, Since 30 Nov 21 \| THANGAMAYL	4%	₹575 Cr	1,677,908
Kirloskar Oil Engines Ltd (Industrials) Equity, Since 31 Mar 23 \| KIRLOSENG	3%	₹500 Cr	3,762,866 ↓ -173,926
Welspun Corp Ltd (Basic Materials) Equity, Since 31 Mar 21 \| 532144	3%	₹447 Cr	5,500,000
Jubilant Ingrevia Ltd Ordinary Shares (Basic Materials) Equity, Since 31 Dec 22 \| JUBLINGREA	2%	₹381 Cr	7,000,000
Sansera Engineering Ltd (Consumer Cyclical) Equity, Since 30 Jun 24 \| 543358	2%	₹367 Cr	1,770,029
Dodla Dairy Ltd (Consumer Defensive) Equity, Since 30 Jun 21 \| 543306	2%	₹364 Cr	3,750,000
LT Foods Ltd (Consumer Defensive) Equity, Since 31 Dec 17 \| 532783	2%	₹363 Cr	10,000,000
Triveni Engineering & Industries Ltd (Consumer Defensive) Equity, Since 31 Aug 17 \| 532356	2%	₹349 Cr	9,200,000
Ipca Laboratories Ltd (Healthcare) Equity, Since 30 Nov 14 \| 524494	2%	₹336 Cr	2,101,047

4. IDBI Small Cap Fund

The Investment objective of the Scheme is to provide investors with the opportunities for long-term capital appreciation by investing predominantly in Equity and Equity related instruments of Small Cap companies. However there can be no assurance that the investment objective under the Scheme will be realized.

Research Highlights for IDBI Small Cap Fund

Bottom quartile AUM (₹552 Cr).
Established history (8+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 19.75% (bottom quartile).
3Y return: 20.47% (bottom quartile).
1Y return: 18.94% (lower mid).
Alpha: -4.18 (bottom quartile).
Sharpe: -0.75 (bottom quartile).
Information ratio: -0.61 (bottom quartile).
Higher exposure to Industrials vs peer median.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~94%).
Largest holding Navin Fluorine International Ltd (~2.8%).

Below is the key information for IDBI Small Cap Fund

IDBI Small Cap Fund Growth
Launch Date	21 Jun 17
NAV (08 May 26)	₹32.3802 ↑ 0.03 (0.10 %)
Net Assets (Cr)	₹552 on 31 Mar 26
Category	Equity - Small Cap
AMC	IDBI Asset Management Limited
Rating	Not Rated
Risk	Moderately High
Expense Ratio	2.3
Sharpe Ratio	-0.75
Information Ratio	-0.61
Alpha Ratio	-4.18
Min Investment	5,000
Min SIP Investment	500
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	₹13,433
30 Apr 23	₹13,962
30 Apr 24	₹20,838
30 Apr 25	₹21,189
30 Apr 26	₹23,461

IDBI Small Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹493,520.
Net Profit of ₹193,520 Invest Now

Returns for IDBI 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 8 May 26

Duration	Returns
1 Month	15.3%
3 Month	13.6%
6 Month	7.2%
1 Year	18.9%
3 Year	20.5%
5 Year	19.7%
10 Year
15 Year
Since launch	14.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	-13.4%
2023	40%
2022	33.4%
2021	2.4%
2020	64.7%
2019	19%
2018	-4.4%
2017	-15%
2016
2015

Fund Manager information for IDBI Small Cap Fund

Name	Since	Tenure
Dikshit Mittal	24 Jul 25	0.68 Yr.
Mahesh Bendre	1 Jul 24	1.75 Yr.

Data below for IDBI Small Cap Fund as on 31 Mar 26

Equity Sector Allocation

Sector	Value
Industrials	30.2%
Basic Materials	14.71%
Consumer Cyclical	13.85%
Consumer Defensive	8.71%
Financial Services	8.6%
Health Care	7.86%
Technology	5.22%
Utility	3%
Communication Services	1.22%
Real Estate	0.66%

Asset Allocation

Asset Class	Value
Cash	5.97%
Equity	94.03%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Navin Fluorine International Ltd (Basic Materials) Equity, Since 30 Sep 19 \| NAVINFLUOR	3%	₹16 Cr	25,378
Avalon Technologies Ltd (Technology) Equity, Since 31 Aug 23 \| AVALON	2%	₹14 Cr	146,747
Manorama Industries Ltd (Consumer Defensive) Equity, Since 31 Dec 24 \| 541974	2%	₹14 Cr	119,603
Allied Blenders and Distillers Ltd (Consumer Defensive) Equity, Since 31 Jul 24 \| ABDL	2%	₹13 Cr	326,140
Kirloskar Oil Engines Ltd (Industrials) Equity, Since 28 Feb 21 \| KIRLOSENG	2%	₹13 Cr	98,601
KSH International Ltd (Industrials) Equity, Since 31 Dec 25 \| KSHINTL	2%	₹12 Cr	269,380
Hindustan Foods Ltd (Industrials) Equity, Since 31 Jul 24 \| 519126	2%	₹11 Cr	223,053
Schneider Electric Infrastructure Ltd (Industrials) Equity, Since 31 Aug 25 \| SCHNEIDER	2%	₹11 Cr	133,576
Arvind Fashions Ltd (Consumer Cyclical) Equity, Since 29 Feb 24 \| ARVINDFASN	2%	₹11 Cr	278,247
Aditya Birla Sun Life AMC Ltd (Financial Services) Equity, Since 31 Aug 24 \| 543374	2%	₹11 Cr	123,311

5. 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).
Oldest track record among peers (21 yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 19.71% (bottom quartile).
3Y return: 21.42% (lower mid).
1Y return: 20.85% (upper mid).
Alpha: 4.51 (top quartile).
Sharpe: -0.20 (upper 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 (08 May 26)	₹279.716 ↑ 0.38 (0.13 %)
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 ₹493,520.
Net Profit of ₹193,520 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 8 May 26

Duration	Returns
1 Month	12%
3 Month	9.6%
6 Month	5.8%
1 Year	20.8%
3 Year	21.4%
5 Year	19.7%
10 Year
15 Year
Since launch	17%

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	3.42 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

Who Should Invest in Small Cap Mutual Funds?

As small-cap funds invest in small-cap stocks and small companies like startups, they have a huge potential for future growth. But, the matter of fact is that the returns of small caps are subjected to high volatility. Thus, some of the small-cap stocks can erode your wealth. However, on the other side, small caps can also double your investments in the future.

Due to the nature of the companies, small caps can outperform in a rising market and even can underperform during a downturn. Hence, investors who can bear a high level of risk in their investment should only consider Investing in small cap funds. You should be able to bear downfalls in bad market phase. If you are planning to invest in such high-risk funds, it is suggested to plan your investments for a longer duration, i.e., approximately for more than five years. The longer you invest in the equity market, higher are the chances to earn good profits.

How to Invest in Small Cap Funds Online?

Open Free Investment Account for Lifetime at Fincash.com.

Complete your Registration and KYC Process

Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

Get Started

Tips to Invest in Best Small Cap Equity Funds

When planning to invest in small-cap funds, here are some of the important parameters that you need to take into account before jumping into investing.

Evaluate past performances

Ideally, whenever you are planning to invest in a Mutual Fund scheme, you should thoroughly evaluate the past performances of the fund. Take returns of the past five years and try to compare it with other good funds. A fund should be consistent in its performances in all market conditions. Also, check if the fund is able to beat its benchmark or not.

The scheme should belong to a quality fund house

It is always suggested to look at the quality & reputation of the fund house that you wish to invest in. A fund house with a long-standing record, large assets under management, star funds or good performing fund, etc., is the one to invest in. The fund house that has a strong presence in the financial industry with a consistent track record should be ideally preferred.

Check the experience of the fund manager

The credit of performance of a Mutual Fund scheme lies with the fund manager. A fund manager is responsible for making investment decisions for the fund’s portfolio. So, investors should go through the performance of the funds managed by the particular fund manager, especially during the tough market phases. The fund manager Going for a fund manager who has been consistent over his career is a preferred choice.

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.