10 Best Small Cap Mutual Funds 2026

Updated on April 16, 2026 , 84779 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 (%)	2025 (%)
Nippon India Small Cap Fund Growth	₹167.514 ↑ 2.15	₹67,642	100	3.8	-1.1	8.8	21.3	22.9	-4.7
Franklin India Smaller Companies Fund Growth	₹166.42 ↑ 1.76	₹12,934	500	2.3	-1.2	6	19	20.3	-8.4
DSP Small Cap Fund Growth	₹201.101 ↑ 1.71	₹16,886	500	5.2	4.4	16.7	21.4	20.2	-2.8
HDFC Small Cap Fund Growth	₹133.454 ↑ 1.62	₹37,424	300	-1.3	-5.5	8.8	17.9	19.8	-0.6
Sundaram Small Cap Fund Growth	₹262.8 ↑ 3.76	₹3,306	100	2.2	0.3	13.1	20.6	19.4	0.4
IDBI Small Cap Fund Growth	₹30.2852 ↑ 0.42	₹606	500	7.4	-0.1	6.5	19.2	19.3	-13.4
ICICI Prudential Smallcap Fund Growth	₹84.59 ↑ 1.22	₹8,355	100	1	-3.2	7.4	16.3	18.6	-0.4
SBI Small Cap Fund Growth	₹165.473 ↑ 1.90	₹34,932	500	1.7	-3.7	3	14.3	15.7	-4.9
Kotak Small Cap Fund Growth	₹247.338 ↑ 3.29	₹16,871	1,000	2.6	-4.5	3.9	15.3	15.7	-9.1
Aditya Birla Sun Life Small Cap Fund Growth	₹86.0144 ↑ 1.12	₹4,882	1,000	3.3	0.2	11.3	19.1	15	-3.7
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Apr 26

Research Highlights & Commentary of 10 Funds showcased

Commentary	Nippon India Small Cap Fund	Franklin India Smaller Companies Fund	DSP Small Cap Fund	HDFC Small Cap Fund	Sundaram Small Cap Fund	IDBI Small Cap Fund	ICICI Prudential Smallcap Fund	SBI Small Cap Fund	Kotak Small Cap Fund	Aditya Birla Sun Life Small Cap Fund
Point 1	Highest AUM (₹67,642 Cr).	Lower mid AUM (₹12,934 Cr).	Upper mid AUM (₹16,886 Cr).	Top quartile AUM (₹37,424 Cr).	Bottom quartile AUM (₹3,306 Cr).	Bottom quartile AUM (₹606 Cr).	Lower mid AUM (₹8,355 Cr).	Upper mid AUM (₹34,932 Cr).	Upper mid AUM (₹16,871 Cr).	Bottom quartile AUM (₹4,882 Cr).
Point 2	Established history (15+ yrs).	Established history (20+ yrs).	Established history (18+ yrs).	Established history (18+ yrs).	Oldest track record among peers (21 yrs).	Established history (8+ yrs).	Established history (18+ yrs).	Established history (16+ yrs).	Established history (21+ yrs).	Established history (18+ yrs).
Point 3	Rating: 4★ (upper mid).	Rating: 4★ (upper mid).	Rating: 4★ (upper mid).	Rating: 4★ (lower mid).	Rating: 3★ (lower mid).	Not Rated.	Rating: 3★ (bottom quartile).	Top rated.	Rating: 3★ (bottom quartile).	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: 22.92% (top quartile).	5Y return: 20.31% (top quartile).	5Y return: 20.23% (upper mid).	5Y return: 19.82% (upper mid).	5Y return: 19.42% (upper mid).	5Y return: 19.29% (lower mid).	5Y return: 18.61% (lower mid).	5Y return: 15.74% (bottom quartile).	5Y return: 15.67% (bottom quartile).	5Y return: 14.96% (bottom quartile).
Point 6	3Y return: 21.32% (top quartile).	3Y return: 19.03% (lower mid).	3Y return: 21.43% (top quartile).	3Y return: 17.94% (lower mid).	3Y return: 20.61% (upper mid).	3Y return: 19.20% (upper mid).	3Y return: 16.33% (bottom quartile).	3Y return: 14.27% (bottom quartile).	3Y return: 15.33% (bottom quartile).	3Y return: 19.06% (upper mid).
Point 7	1Y return: 8.78% (upper mid).	1Y return: 6.05% (bottom quartile).	1Y return: 16.73% (top quartile).	1Y return: 8.77% (upper mid).	1Y return: 13.13% (top quartile).	1Y return: 6.50% (lower mid).	1Y return: 7.44% (lower mid).	1Y return: 2.98% (bottom quartile).	1Y return: 3.86% (bottom quartile).	1Y return: 11.29% (upper mid).
Point 8	Alpha: 2.58 (upper mid).	Alpha: -0.83 (bottom quartile).	Alpha: 0.00 (upper mid).	Alpha: 0.00 (upper mid).	Alpha: 6.09 (top quartile).	Alpha: -1.94 (bottom quartile).	Alpha: 3.69 (top quartile).	Alpha: 0.00 (lower mid).	Alpha: -2.10 (bottom quartile).	Alpha: 0.00 (lower mid).
Point 9	Sharpe: 0.76 (lower mid).	Sharpe: 0.48 (lower mid).	Sharpe: 0.90 (upper mid).	Sharpe: 0.86 (upper mid).	Sharpe: 1.01 (top quartile).	Sharpe: 0.42 (bottom quartile).	Sharpe: 0.86 (upper mid).	Sharpe: 0.34 (bottom quartile).	Sharpe: 0.42 (bottom quartile).	Sharpe: 0.95 (top quartile).
Point 10	Information ratio: -0.10 (upper mid).	Information ratio: -0.58 (lower mid).	Information ratio: 0.00 (top quartile).	Information ratio: 0.00 (top quartile).	Information ratio: -0.31 (lower mid).	Information ratio: -0.71 (bottom quartile).	Information ratio: -0.64 (bottom quartile).	Information ratio: 0.00 (upper mid).	Information ratio: -0.99 (bottom quartile).	Information ratio: 0.00 (upper mid).

Nippon India Small Cap Fund

Highest AUM (₹67,642 Cr).
Established history (15+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 22.92% (top quartile).
3Y return: 21.32% (top quartile).
1Y return: 8.78% (upper mid).
Alpha: 2.58 (upper mid).
Sharpe: 0.76 (lower mid).
Information ratio: -0.10 (upper mid).

Franklin India Smaller Companies Fund

Lower mid AUM (₹12,934 Cr).
Established history (20+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 20.31% (top quartile).
3Y return: 19.03% (lower mid).
1Y return: 6.05% (bottom quartile).
Alpha: -0.83 (bottom quartile).
Sharpe: 0.48 (lower mid).
Information ratio: -0.58 (lower mid).

DSP Small Cap Fund

Upper mid AUM (₹16,886 Cr).
Established history (18+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 20.23% (upper mid).
3Y return: 21.43% (top quartile).
1Y return: 16.73% (top quartile).
Alpha: 0.00 (upper mid).
Sharpe: 0.90 (upper mid).
Information ratio: 0.00 (top quartile).

HDFC Small Cap Fund

Top quartile AUM (₹37,424 Cr).
Established history (18+ yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately High.
5Y return: 19.82% (upper mid).
3Y return: 17.94% (lower mid).
1Y return: 8.77% (upper mid).
Alpha: 0.00 (upper mid).
Sharpe: 0.86 (upper mid).
Information ratio: 0.00 (top quartile).

Sundaram Small Cap Fund

Bottom quartile AUM (₹3,306 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 19.42% (upper mid).
3Y return: 20.61% (upper mid).
1Y return: 13.13% (top quartile).
Alpha: 6.09 (top quartile).
Sharpe: 1.01 (top quartile).
Information ratio: -0.31 (lower mid).

IDBI Small Cap Fund

Bottom quartile AUM (₹606 Cr).
Established history (8+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 19.29% (lower mid).
3Y return: 19.20% (upper mid).
1Y return: 6.50% (lower mid).
Alpha: -1.94 (bottom quartile).
Sharpe: 0.42 (bottom quartile).
Information ratio: -0.71 (bottom quartile).

ICICI Prudential Smallcap Fund

Lower mid AUM (₹8,355 Cr).
Established history (18+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 18.61% (lower mid).
3Y return: 16.33% (bottom quartile).
1Y return: 7.44% (lower mid).
Alpha: 3.69 (top quartile).
Sharpe: 0.86 (upper mid).
Information ratio: -0.64 (bottom quartile).

SBI Small Cap Fund

Upper mid AUM (₹34,932 Cr).
Established history (16+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 15.74% (bottom quartile).
3Y return: 14.27% (bottom quartile).
1Y return: 2.98% (bottom quartile).
Alpha: 0.00 (lower mid).
Sharpe: 0.34 (bottom quartile).
Information ratio: 0.00 (upper mid).

Kotak Small Cap Fund

Upper mid AUM (₹16,871 Cr).
Established history (21+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 15.67% (bottom quartile).
3Y return: 15.33% (bottom quartile).
1Y return: 3.86% (bottom quartile).
Alpha: -2.10 (bottom quartile).
Sharpe: 0.42 (bottom quartile).
Information ratio: -0.99 (bottom quartile).

Aditya Birla Sun Life Small Cap Fund

Bottom quartile AUM (₹4,882 Cr).
Established history (18+ yrs).
Rating: 5★ (top quartile).
Risk profile: Moderately High.
5Y return: 14.96% (bottom quartile).
3Y return: 19.06% (upper mid).
1Y return: 11.29% (upper mid).
Alpha: 0.00 (lower mid).
Sharpe: 0.95 (top 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 (₹67,642 Cr).
Established history (15+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 22.92% (top quartile).
3Y return: 21.32% (upper mid).
1Y return: 8.78% (lower mid).
Alpha: 2.58 (upper mid).
Sharpe: 0.76 (bottom quartile).
Information ratio: -0.10 (lower 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 (17 Apr 26)	₹167.514 ↑ 2.15 (1.30 %)
Net Assets (Cr)	₹67,642 on 28 Feb 26
Category	Equity - Small Cap
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.44
Sharpe Ratio	0.76
Information Ratio	-0.1
Alpha Ratio	2.58
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
31 Mar 21	₹10,000
31 Mar 22	₹14,412
31 Mar 23	₹15,370
31 Mar 24	₹23,874
31 Mar 25	₹25,331
31 Mar 26	₹24,787

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 17 Apr 26

Duration	Returns
1 Month	9.4%
3 Month	3.8%
6 Month	-1.1%
1 Year	8.8%
3 Year	21.3%
5 Year	22.9%
10 Year
15 Year
Since launch	19.8%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	-4.7%
2024	26.1%
2023	48.9%
2022	6.5%
2021	74.3%
2020	29.2%
2019	-2.5%
2018	-16.7%
2017	63%
2016	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 28 Feb 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

Bottom quartile AUM (₹12,934 Cr).
Established history (20+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 20.31% (upper mid).
3Y return: 19.03% (bottom quartile).
1Y return: 6.05% (bottom quartile).
Alpha: -0.83 (bottom quartile).
Sharpe: 0.48 (bottom quartile).
Information ratio: -0.58 (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 (17 Apr 26)	₹166.42 ↑ 1.76 (1.07 %)
Net Assets (Cr)	₹12,934 on 28 Feb 26
Category	Equity - Small Cap
AMC	Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.72
Sharpe Ratio	0.48
Information Ratio	-0.58
Alpha Ratio	-0.83
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
31 Mar 21	₹10,000
31 Mar 22	₹13,137
31 Mar 23	₹14,275
31 Mar 24	₹21,824
31 Mar 25	₹22,461
31 Mar 26	₹21,457

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 17 Apr 26

Duration	Returns
1 Month	10.2%
3 Month	2.3%
6 Month	-1.2%
1 Year	6%
3 Year	19%
5 Year	20.3%
10 Year
15 Year
Since launch	14.9%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	-8.4%
2024	23.2%
2023	52.1%
2022	3.6%
2021	56.4%
2020	18.7%
2019	-5%
2018	-17.4%
2017	43.5%
2016	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 28 Feb 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

Lower mid AUM (₹16,886 Cr).
Established history (18+ yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately High.
5Y return: 20.23% (lower mid).
3Y return: 21.43% (top quartile).
1Y return: 16.73% (top quartile).
Alpha: 0.00 (lower mid).
Sharpe: 0.90 (upper mid).
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 (17 Apr 26)	₹201.101 ↑ 1.71 (0.86 %)
Net Assets (Cr)	₹16,886 on 28 Feb 26
Category	Equity - Small Cap
AMC	DSP BlackRock Invmt Managers Pvt. Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.72
Sharpe Ratio	0.9
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
31 Mar 21	₹10,000
31 Mar 22	₹13,921
31 Mar 23	₹13,701
31 Mar 24	₹19,782
31 Mar 25	₹21,554
31 Mar 26	₹22,131

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 17 Apr 26

Duration	Returns
1 Month	11.2%
3 Month	5.2%
6 Month	4.4%
1 Year	16.7%
3 Year	21.4%
5 Year	20.2%
10 Year
15 Year
Since launch	17.3%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	-2.8%
2024	25.6%
2023	41.2%
2022	0.5%
2021	58.9%
2020	33.1%
2019	0.7%
2018	-25.5%
2017	42.8%
2016	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 28 Feb 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. HDFC Small Cap Fund

To provide long-term capital appreciation by investing predominantly in Small-Cap and Mid-Cap companies.

Research Highlights for HDFC Small Cap Fund

Upper mid AUM (₹37,424 Cr).
Established history (18+ yrs).
Rating: 4★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 19.82% (bottom quartile).
3Y return: 17.94% (bottom quartile).
1Y return: 8.77% (bottom quartile).
Alpha: 0.00 (bottom quartile).
Sharpe: 0.86 (lower mid).
Information ratio: 0.00 (upper mid).
Top sector: Industrials.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~92%).
Largest holding Aster DM Healthcare Ltd Ordinary Shares (~4.2%).

Below is the key information for HDFC Small Cap Fund

HDFC Small Cap Fund Growth
Launch Date	3 Apr 08
NAV (17 Apr 26)	₹133.454 ↑ 1.62 (1.23 %)
Net Assets (Cr)	₹37,424 on 28 Feb 26
Category	Equity - Small Cap
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.58
Sharpe Ratio	0.86
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	300
Exit Load	0-1 Years (1%),1 Years and above(NIL)

Growth of 10,000 investment over the years.

Date	Value
31 Mar 21	₹10,000
31 Mar 22	₹13,435
31 Mar 23	₹15,069
31 Mar 24	₹22,261
31 Mar 25	₹22,951
31 Mar 26	₹22,395

HDFC 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 HDFC 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 17 Apr 26

Duration	Returns
1 Month	7.9%
3 Month	-1.3%
6 Month	-5.5%
1 Year	8.8%
3 Year	17.9%
5 Year	19.8%
10 Year
15 Year
Since launch	15.4%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	-0.6%
2024	20.4%
2023	44.8%
2022	4.6%
2021	64.9%
2020	20.2%
2019	-9.5%
2018	-8.1%
2017	60.8%
2016	5.4%

Fund Manager information for HDFC Small Cap Fund

Name	Since	Tenure
Chirag Setalvad	28 Jun 14	11.77 Yr.
Dhruv Muchhal	22 Jun 23	2.78 Yr.

Data below for HDFC Small Cap Fund as on 28 Feb 26

Equity Sector Allocation

Sector	Value
Industrials	22.97%
Consumer Cyclical	20.17%
Financial Services	13.84%
Health Care	11.71%
Technology	9.89%
Basic Materials	7.46%
Consumer Defensive	4.29%
Communication Services	1.6%

Asset Allocation

Asset Class	Value
Cash	8.07%
Equity	91.93%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Aster DM Healthcare Ltd Ordinary Shares (Healthcare) Equity, Since 30 Jun 19 \| ASTERDM	4%	₹1,575 Cr	24,067,031 ↑ 139,897
Bank of Baroda (Financial Services) Equity, Since 31 Mar 19 \| BANKBARODA	4%	₹1,508 Cr	46,828,792
Firstsource Solutions Ltd (Technology) Equity, Since 31 Mar 18 \| FSL	3%	₹1,197 Cr	56,160,355 ↑ 895,993
eClerx Services Ltd (Technology) Equity, Since 31 Mar 18 \| ECLERX	3%	₹967 Cr	3,046,989 ↑ 45,000
Indian Bank (Financial Services) Equity, Since 31 Jul 16 \| INDIANB	3%	₹960 Cr	9,688,128
Gabriel India Ltd (Consumer Cyclical) Equity, Since 31 Oct 18 \| GABRIEL	2%	₹928 Cr	9,293,189 ↑ 50,000
Eris Lifesciences Ltd Registered Shs (Healthcare) Equity, Since 31 Jul 23 \| ERIS	2%	₹897 Cr	6,601,945 ↑ 45,294
Fortis Healthcare Ltd (Healthcare) Equity, Since 31 Jul 23 \| FORTIS	2%	₹890 Cr	9,440,132
Krishna Institute of Medical Sciences Ltd (Healthcare) Equity, Since 31 Jul 23 \| 543308	2%	₹830 Cr	11,133,566 ↑ 6,400
Great Eastern Shipping Co Ltd (Industrials) Equity, Since 31 Jan 15 \| GESHIP	2%	₹700 Cr	5,229,582

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 (₹3,306 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 19.42% (bottom quartile).
3Y return: 20.61% (lower mid).
1Y return: 13.13% (upper mid).
Alpha: 6.09 (top quartile).
Sharpe: 1.01 (top quartile).
Information ratio: -0.31 (bottom quartile).
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 (17 Apr 26)	₹262.8 ↑ 3.76 (1.45 %)
Net Assets (Cr)	₹3,306 on 28 Feb 26
Category	Equity - Small Cap
AMC	Sundaram Asset Management Company Ltd
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.94
Sharpe Ratio	1.01
Information Ratio	-0.31
Alpha Ratio	6.09
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
31 Mar 21	₹10,000
31 Mar 22	₹13,713
31 Mar 23	₹13,694
31 Mar 24	₹20,481
31 Mar 25	₹21,101
31 Mar 26	₹21,304

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 17 Apr 26

Duration	Returns
1 Month	12.8%
3 Month	2.2%
6 Month	0.3%
1 Year	13.1%
3 Year	20.6%
5 Year	19.4%
10 Year
15 Year
Since launch	16.7%

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	3.42 Yr.

Data below for Sundaram Small Cap Fund as on 28 Feb 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.