10 Best Small Cap Mutual Funds 2026

Updated on March 8, 2026 , 84444 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	₹157.109 ↑ 2.58	₹65,812	100	-3.9	-7.4	9.2	19.2	21.2	-4.7
HDFC Small Cap Fund Growth	₹128.037 ↑ 2.39	₹36,941	300	-6.6	-10.7	9.9	16.5	19.1	-0.6
DSP Small Cap Fund Growth	₹185.396 ↑ 3.13	₹16,135	500	-3.8	-6.6	13.5	18.3	18	-2.8
Franklin India Smaller Companies Fund Growth	₹154.809 ↑ 2.48	₹12,764	500	-4.7	-9.1	5.9	16.8	17.5	-8.4
Sundaram Small Cap Fund Growth	₹242.195 ↑ 4.93	₹3,285	100	-5.4	-6.7	12.5	17.9	17.5	0.4
IDBI Small Cap Fund Growth	₹27.6508 ↑ 0.55	₹587	500	-3.4	-9.6	5.1	15.5	17.3	-13.4
ICICI Prudential Smallcap Fund Growth	₹80.37 ↑ 1.27	₹8,123	100	-5.5	-9.4	8.1	14.8	16.8	-0.4
Kotak Small Cap Fund Growth	₹234.261 ↑ 3.99	₹16,368	1,000	-5.4	-10.6	4.5	13.2	14.3	-9.1
SBI Small Cap Fund Growth	₹155.457 ↑ 2.66	₹34,449	500	-6.7	-10.4	3.2	11.9	13.9	-4.9
Aditya Birla Sun Life Small Cap Fund Growth	₹80.871 ↑ 1.26	₹4,778	1,000	-3.4	-5.2	12.6	16.7	13.1	-3.7
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 10 Mar 26

Research Highlights & Commentary of 10 Funds showcased

Commentary	Nippon India Small Cap Fund	HDFC Small Cap Fund	DSP Small Cap Fund	Franklin India Smaller Companies Fund	Sundaram Small Cap Fund	IDBI Small Cap Fund	ICICI Prudential Smallcap Fund	Kotak Small Cap Fund	SBI Small Cap Fund	Aditya Birla Sun Life Small Cap Fund
Point 1	Highest AUM (₹65,812 Cr).	Top quartile AUM (₹36,941 Cr).	Upper mid AUM (₹16,135 Cr).	Lower mid AUM (₹12,764 Cr).	Bottom quartile AUM (₹3,285 Cr).	Bottom quartile AUM (₹587 Cr).	Lower mid AUM (₹8,123 Cr).	Upper mid AUM (₹16,368 Cr).	Upper mid AUM (₹34,449 Cr).	Bottom quartile AUM (₹4,778 Cr).
Point 2	Established history (15+ yrs).	Established history (17+ yrs).	Established history (18+ yrs).	Established history (20+ yrs).	Oldest track record among peers (21 yrs).	Established history (8+ yrs).	Established history (18+ yrs).	Established history (21+ yrs).	Established history (16+ 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).	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: 21.16% (top quartile).	5Y return: 19.05% (top quartile).	5Y return: 18.02% (upper mid).	5Y return: 17.49% (upper mid).	5Y return: 17.47% (upper mid).	5Y return: 17.34% (lower mid).	5Y return: 16.77% (lower mid).	5Y return: 14.30% (bottom quartile).	5Y return: 13.94% (bottom quartile).	5Y return: 13.13% (bottom quartile).
Point 6	3Y return: 19.18% (top quartile).	3Y return: 16.45% (lower mid).	3Y return: 18.26% (top quartile).	3Y return: 16.75% (upper mid).	3Y return: 17.88% (upper mid).	3Y return: 15.51% (lower mid).	3Y return: 14.83% (bottom quartile).	3Y return: 13.21% (bottom quartile).	3Y return: 11.89% (bottom quartile).	3Y return: 16.75% (upper mid).
Point 7	1Y return: 9.17% (upper mid).	1Y return: 9.86% (upper mid).	1Y return: 13.47% (top quartile).	1Y return: 5.89% (lower mid).	1Y return: 12.52% (upper mid).	1Y return: 5.10% (bottom quartile).	1Y return: 8.05% (lower mid).	1Y return: 4.45% (bottom quartile).	1Y return: 3.19% (bottom quartile).	1Y return: 12.63% (top quartile).
Point 8	Alpha: -0.64 (lower mid).	Alpha: 0.00 (top quartile).	Alpha: 0.00 (upper mid).	Alpha: -4.41 (bottom quartile).	Alpha: 3.29 (top quartile).	Alpha: -9.15 (bottom quartile).	Alpha: -0.40 (lower mid).	Alpha: -6.63 (bottom quartile).	Alpha: 0.00 (upper mid).	Alpha: 0.00 (upper mid).
Point 9	Sharpe: -0.19 (lower mid).	Sharpe: 0.05 (top quartile).	Sharpe: -0.02 (upper mid).	Sharpe: -0.38 (lower mid).	Sharpe: 0.01 (upper mid).	Sharpe: -0.56 (bottom quartile).	Sharpe: -0.17 (upper mid).	Sharpe: -0.48 (bottom quartile).	Sharpe: -0.41 (bottom quartile).	Sharpe: 0.01 (top quartile).
Point 10	Information ratio: 0.02 (top quartile).	Information ratio: 0.00 (top quartile).	Information ratio: 0.00 (upper mid).	Information ratio: -0.19 (lower mid).	Information ratio: -0.17 (lower mid).	Information ratio: -0.62 (bottom quartile).	Information ratio: -0.59 (bottom quartile).	Information ratio: -0.90 (bottom quartile).	Information ratio: 0.00 (upper mid).	Information ratio: 0.00 (upper mid).

Nippon India Small Cap Fund

Highest AUM (₹65,812 Cr).
Established history (15+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 21.16% (top quartile).
3Y return: 19.18% (top quartile).
1Y return: 9.17% (upper mid).
Alpha: -0.64 (lower mid).
Sharpe: -0.19 (lower mid).
Information ratio: 0.02 (top quartile).

HDFC Small Cap Fund

Top quartile AUM (₹36,941 Cr).
Established history (17+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 19.05% (top quartile).
3Y return: 16.45% (lower mid).
1Y return: 9.86% (upper mid).
Alpha: 0.00 (top quartile).
Sharpe: 0.05 (top quartile).
Information ratio: 0.00 (top quartile).

DSP Small Cap Fund

Upper mid AUM (₹16,135 Cr).
Established history (18+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 18.02% (upper mid).
3Y return: 18.26% (top quartile).
1Y return: 13.47% (top quartile).
Alpha: 0.00 (upper mid).
Sharpe: -0.02 (upper mid).
Information ratio: 0.00 (upper mid).

Franklin India Smaller Companies Fund

Lower mid AUM (₹12,764 Cr).
Established history (20+ yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately High.
5Y return: 17.49% (upper mid).
3Y return: 16.75% (upper mid).
1Y return: 5.89% (lower mid).
Alpha: -4.41 (bottom quartile).
Sharpe: -0.38 (lower mid).
Information ratio: -0.19 (lower mid).

Sundaram Small Cap Fund

Bottom quartile AUM (₹3,285 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 17.47% (upper mid).
3Y return: 17.88% (upper mid).
1Y return: 12.52% (upper mid).
Alpha: 3.29 (top quartile).
Sharpe: 0.01 (upper mid).
Information ratio: -0.17 (lower mid).

IDBI Small Cap Fund

Bottom quartile AUM (₹587 Cr).
Established history (8+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 17.34% (lower mid).
3Y return: 15.51% (lower mid).
1Y return: 5.10% (bottom quartile).
Alpha: -9.15 (bottom quartile).
Sharpe: -0.56 (bottom quartile).
Information ratio: -0.62 (bottom quartile).

ICICI Prudential Smallcap Fund

Lower mid AUM (₹8,123 Cr).
Established history (18+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 16.77% (lower mid).
3Y return: 14.83% (bottom quartile).
1Y return: 8.05% (lower mid).
Alpha: -0.40 (lower mid).
Sharpe: -0.17 (upper mid).
Information ratio: -0.59 (bottom quartile).

Kotak Small Cap Fund

Upper mid AUM (₹16,368 Cr).
Established history (21+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 14.30% (bottom quartile).
3Y return: 13.21% (bottom quartile).
1Y return: 4.45% (bottom quartile).
Alpha: -6.63 (bottom quartile).
Sharpe: -0.48 (bottom quartile).
Information ratio: -0.90 (bottom quartile).

SBI Small Cap Fund

Upper mid AUM (₹34,449 Cr).
Established history (16+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 13.94% (bottom quartile).
3Y return: 11.89% (bottom quartile).
1Y return: 3.19% (bottom quartile).
Alpha: 0.00 (upper mid).
Sharpe: -0.41 (bottom quartile).
Information ratio: 0.00 (upper mid).

Aditya Birla Sun Life Small Cap Fund

Bottom quartile AUM (₹4,778 Cr).
Established history (18+ yrs).
Rating: 5★ (top quartile).
Risk profile: Moderately High.
5Y return: 13.13% (bottom quartile).
3Y return: 16.75% (upper mid).
1Y return: 12.63% (top quartile).
Alpha: 0.00 (upper mid).
Sharpe: 0.01 (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 (₹65,812 Cr).
Established history (15+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 21.16% (top quartile).
3Y return: 19.18% (top quartile).
1Y return: 9.17% (bottom quartile).
Alpha: -0.64 (bottom quartile).
Sharpe: -0.19 (bottom quartile).
Information ratio: 0.02 (top quartile).
Top sector: Industrials.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~96%).
Largest holding Multi Commodity Exchange of India Ltd (~3.4%).

Below is the key information for Nippon India Small Cap Fund

Nippon India Small Cap Fund Growth
Launch Date	16 Sep 10
NAV (10 Mar 26)	₹157.109 ↑ 2.58 (1.67 %)
Net Assets (Cr)	₹65,812 on 31 Jan 26
Category	Equity - Small Cap
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.44
Sharpe Ratio	-0.19
Information Ratio	0.02
Alpha Ratio	-0.64
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
28 Feb 21	₹10,000
28 Feb 22	₹14,089
28 Feb 23	₹15,925
29 Feb 24	₹25,045
28 Feb 25	₹24,507
28 Feb 26	₹28,493

Nippon India Small Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹518,033.
Net Profit of ₹218,033 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 10 Mar 26

Duration	Returns
1 Month	-5.2%
3 Month	-3.9%
6 Month	-7.4%
1 Year	9.2%
3 Year	19.2%
5 Year	21.2%
10 Year
15 Year
Since launch	19.5%

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	9.09 Yr.
Kinjal Desai	25 May 18	7.7 Yr.
Lokesh Maru	5 Sep 25	0.41 Yr.
Divya Sharma	5 Sep 25	0.41 Yr.

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

Equity Sector Allocation

Sector	Value
Industrials	19.87%
Financial Services	17.63%
Consumer Cyclical	13.65%
Consumer Defensive	11.02%
Basic Materials	11%
Health Care	9.06%
Technology	6.72%
Utility	3.16%
Energy	1.39%
Communication Services	1.17%
Real Estate	1.08%

Asset Allocation

Asset Class	Value
Cash	4.26%
Equity	95.74%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Multi Commodity Exchange of India Ltd (Financial Services) Equity, Since 28 Feb 21 \| MCX	3%	₹2,219 Cr	8,778,789 ↓ -476,261
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 22 \| HDFCBANK	2%	₹1,422 Cr	15,300,000 ↑ 2,000,000
State Bank of India (Financial Services) Equity, Since 31 Oct 19 \| SBIN	2%	₹1,115 Cr	10,347,848
Karur Vysya Bank Ltd (Financial Services) Equity, Since 28 Feb 17 \| 590003	2%	₹1,082 Cr	35,913,511 ↓ -2,227,363
Axis Bank Ltd (Financial Services) Equity, Since 31 Jul 24 \| AXISBANK	1%	₹819 Cr	5,977,976
eClerx Services Ltd (Technology) Equity, Since 31 Jul 20 \| ECLERX	1%	₹797 Cr	1,712,794
Bharat Heavy Electricals Ltd (Industrials) Equity, Since 30 Sep 22 \| BHEL	1%	₹775 Cr	29,507,422
Emami Ltd (Consumer Defensive) Equity, Since 31 Jul 23 \| EMAMILTD	1%	₹772 Cr	15,948,302 ↑ 150,000
Zydus Wellness Ltd (Consumer Defensive) Equity, Since 31 Aug 16 \| ZYDUSWELL	1%	₹764 Cr	17,048,030
TD Power Systems Ltd (Industrials) Equity, Since 31 Dec 15 \| TDPOWERSYS	1%	₹743 Cr	10,178,244

2. 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 (₹36,941 Cr).
Established history (17+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 19.05% (upper mid).
3Y return: 16.45% (bottom quartile).
1Y return: 9.86% (lower mid).
Alpha: 0.00 (upper mid).
Sharpe: 0.05 (top quartile).
Information ratio: 0.00 (upper mid).
Top sector: Industrials.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~92%).
Largest holding Firstsource Solutions Ltd (~4.8%).

Below is the key information for HDFC Small Cap Fund

HDFC Small Cap Fund Growth
Launch Date	3 Apr 08
NAV (10 Mar 26)	₹128.037 ↑ 2.39 (1.90 %)
Net Assets (Cr)	₹36,941 on 31 Jan 26
Category	Equity - Small Cap
AMC	HDFC Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.58
Sharpe Ratio	0.05
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
28 Feb 21	₹10,000
28 Feb 22	₹13,233
28 Feb 23	₹15,045
29 Feb 24	₹23,066
28 Feb 25	₹21,746
28 Feb 26	₹25,584

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 10 Mar 26

Duration	Returns
1 Month	-7.2%
3 Month	-6.6%
6 Month	-10.7%
1 Year	9.9%
3 Year	16.5%
5 Year	19.1%
10 Year
15 Year
Since launch	15.3%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	-0.6%
2023	20.4%
2022	44.8%
2021	4.6%
2020	64.9%
2019	20.2%
2018	-9.5%
2017	-8.1%
2016	60.8%
2015	5.4%

Fund Manager information for HDFC Small Cap Fund

Name	Since	Tenure
Chirag Setalvad	28 Jun 14	11.61 Yr.
Dhruv Muchhal	22 Jun 23	2.62 Yr.

Data below for HDFC Small Cap Fund as on 31 Jan 26

Equity Sector Allocation

Sector	Value
Industrials	22.09%
Consumer Cyclical	19.49%
Financial Services	13.8%
Technology	12.74%
Health Care	10.57%
Basic Materials	7.2%
Consumer Defensive	4.17%
Communication Services	1.45%

Asset Allocation

Asset Class	Value
Cash	8.5%
Equity	91.5%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Firstsource Solutions Ltd (Technology) Equity, Since 31 Mar 18 \| FSL	5%	₹1,768 Cr	55,264,362
Bank of Baroda (Financial Services) Equity, Since 31 Mar 19 \| BANKBARODA	4%	₹1,402 Cr	46,828,792
eClerx Services Ltd (Technology) Equity, Since 31 Mar 18 \| ECLERX	4%	₹1,396 Cr	3,001,989 ↓ -139,255
Aster DM Healthcare Ltd Ordinary Shares (Healthcare) Equity, Since 30 Jun 19 \| ASTERDM	4%	₹1,321 Cr	23,927,134
Eris Lifesciences Ltd Registered Shs (Healthcare) Equity, Since 31 Jul 23 \| ERIS	2%	₹902 Cr	6,556,651 ↑ 50,000
Indian Bank (Financial Services) Equity, Since 31 Jul 16 \| INDIANB	2%	₹883 Cr	9,688,128
Gabriel India Ltd (Consumer Cyclical) Equity, Since 31 Oct 18 \| GABRIEL	2%	₹863 Cr	9,243,189 ↑ 19,814
Fortis Healthcare Ltd (Healthcare) Equity, Since 31 Jul 23 \| FORTIS	2%	₹804 Cr	9,440,132
Krishna Institute of Medical Sciences Ltd (Healthcare) Equity, Since 31 Jul 23 \| 543308	2%	₹672 Cr	11,127,166
Great Eastern Shipping Co Ltd (Industrials) Equity, Since 31 Jan 15 \| GESHIP	2%	₹629 Cr	5,229,582

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 (₹16,135 Cr).
Established history (18+ yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately High.
5Y return: 18.02% (lower mid).
3Y return: 18.26% (upper mid).
1Y return: 13.47% (top quartile).
Alpha: 0.00 (lower mid).
Sharpe: -0.02 (lower mid).
Information ratio: 0.00 (lower mid).
Higher exposure to Consumer Cyclical vs peer median.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~94%).
Largest holding Lumax Auto Technologies Ltd (~5.2%).

Below is the key information for DSP Small Cap Fund

DSP Small Cap Fund Growth
Launch Date	14 Jun 07
NAV (10 Mar 26)	₹185.396 ↑ 3.13 (1.72 %)
Net Assets (Cr)	₹16,135 on 31 Jan 26
Category	Equity - Small Cap
AMC	DSP BlackRock Invmt Managers Pvt. Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.72
Sharpe Ratio	-0.02
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
28 Feb 21	₹10,000
28 Feb 22	₹13,376
28 Feb 23	₹14,145
29 Feb 24	₹21,059
28 Feb 25	₹20,502
28 Feb 26	₹25,074

DSP 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 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 10 Mar 26

Duration	Returns
1 Month	-6.3%
3 Month	-3.8%
6 Month	-6.6%
1 Year	13.5%
3 Year	18.3%
5 Year	18%
10 Year
15 Year
Since launch	16.9%

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	15.63 Yr.

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

Equity Sector Allocation

Sector	Value
Consumer Cyclical	32.9%
Basic Materials	16.39%
Industrials	15.21%
Health Care	10.05%
Financial Services	8.02%
Consumer Defensive	7.21%
Technology	3.67%
Communication Services	0.64%
Utility	0.12%

Asset Allocation

Asset Class	Value
Cash	5.8%
Equity	94.2%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Lumax Auto Technologies Ltd (Consumer Cyclical) Equity, Since 30 Jun 18 \| LUMAXTECH	5%	₹835 Cr	6,196,634
Thangamayil Jewellery Ltd (Consumer Cyclical) Equity, Since 30 Nov 21 \| THANGAMAYL	3%	₹557 Cr	1,677,908
eClerx Services Ltd (Technology) Equity, Since 28 Feb 18 \| ECLERX	3%	₹514 Cr	1,105,918
Kirloskar Oil Engines Ltd (Industrials) Equity, Since 31 Mar 23 \| KIRLOSENG	3%	₹470 Cr	4,000,000
Jubilant Ingrevia Ltd Ordinary Shares (Basic Materials) Equity, Since 31 Dec 22 \| JUBLINGREA	3%	₹445 Cr	7,000,000
Dodla Dairy Ltd (Consumer Defensive) Equity, Since 30 Jun 21 \| 543306	3%	₹444 Cr	3,750,000
Welspun Corp Ltd (Basic Materials) Equity, Since 31 Mar 21 \| WELCORP	2%	₹401 Cr	5,500,000
LT Foods Ltd (Consumer Defensive) Equity, Since 31 Dec 17 \| LTFOODS	2%	₹373 Cr	10,000,000
Triveni Engineering & Industries Ltd (Consumer Defensive) Equity, Since 31 Aug 17 \| TRIVENI	2%	₹345 Cr	9,200,000
Cyient Ltd (Industrials) Equity, Since 30 Sep 21 \| CYIENT	2%	₹341 Cr	3,000,000

4. 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 (₹12,764 Cr).
Established history (20+ yrs).
Rating: 4★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 17.49% (bottom quartile).
3Y return: 16.75% (bottom quartile).
1Y return: 5.89% (bottom quartile).
Alpha: -4.41 (bottom quartile).
Sharpe: -0.38 (bottom quartile).
Information ratio: -0.19 (bottom quartile).
Top sector: Consumer Cyclical.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~95%).
High-quality debt (AAA/AA ~100%).
Largest holding Equitas Small Finance Bank Ltd Ordinary Shares (~2.6%).

Below is the key information for Franklin India Smaller Companies Fund

Franklin India Smaller Companies Fund Growth
Launch Date	13 Jan 06
NAV (10 Mar 26)	₹154.809 ↑ 2.48 (1.63 %)
Net Assets (Cr)	₹12,764 on 31 Jan 26
Category	Equity - Small Cap
AMC	Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.72
Sharpe Ratio	-0.38
Information Ratio	-0.19
Alpha Ratio	-4.41
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
28 Feb 21	₹10,000
28 Feb 22	₹12,900
28 Feb 23	₹14,491
29 Feb 24	₹22,639
28 Feb 25	₹21,539
28 Feb 26	₹24,128

Franklin India Smaller Companies 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 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 10 Mar 26

Duration	Returns
1 Month	-6.7%
3 Month	-4.7%
6 Month	-9.1%
1 Year	5.9%
3 Year	16.8%
5 Year	17.5%
10 Year
15 Year
Since launch	14.6%

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	15.01 Yr.
Sandeep Manam	18 Oct 21	4.29 Yr.
Akhil Kalluri	8 Sep 22	3.4 Yr.

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

Equity Sector Allocation

Sector	Value
Consumer Cyclical	18.78%
Financial Services	18.23%
Industrials	17.62%
Basic Materials	10.53%
Health Care	10.11%
Technology	8.81%
Real Estate	4%
Consumer Defensive	3.95%
Utility	3.34%

Asset Allocation

Asset Class	Value
Cash	4.62%
Equity	95.38%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Equitas Small Finance Bank Ltd Ordinary Shares (Financial Services) Equity, Since 31 Oct 20 \| EQUITASBNK	3%	₹337 Cr	48,064,081
Syrma SGS Technology Ltd (Technology) Equity, Since 31 Aug 22 \| SYRMA	2%	₹296 Cr	3,895,864
CCL Products (India) Ltd (Consumer Defensive) Equity, Since 30 Apr 19 \| CCL	2%	₹292 Cr	3,010,279
Brigade Enterprises Ltd (Real Estate) Equity, Since 30 Jun 14 \| BRIGADE	2%	₹291 Cr	3,868,691
Aster DM Healthcare Ltd Ordinary Shares (Healthcare) Equity, Since 31 Jul 23 \| ASTERDM	2%	₹258 Cr	4,675,704
Eris Lifesciences Ltd Registered Shs (Healthcare) Equity, Since 30 Sep 19 \| ERIS	2%	₹257 Cr	1,866,828
Kirloskar Oil Engines Ltd (Industrials) Equity, Since 30 Nov 22 \| KIRLOSENG	2%	₹247 Cr	2,100,935 ↑ 117,972
J.B. Chemicals & Pharmaceuticals Ltd (Healthcare) Equity, Since 30 Jun 14 \| JBCHEPHARM	2%	₹246 Cr	1,316,741 ↓ -131,982
DCB Bank Ltd (Financial Services) Equity, Since 31 May 18 \| DCBBANK	2%	₹244 Cr	12,199,095
Zensar Technologies Ltd (Technology) Equity, Since 28 Feb 23 \| ZENSARTECH	2%	₹237 Cr	3,640,478

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 (₹3,285 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 17.47% (bottom quartile).
3Y return: 17.88% (lower mid).
1Y return: 12.52% (upper mid).
Alpha: 3.29 (top quartile).
Sharpe: 0.01 (upper mid).
Information ratio: -0.17 (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 (~3.8%).

Below is the key information for Sundaram Small Cap Fund

Sundaram Small Cap Fund Growth
Launch Date	15 Feb 05
NAV (10 Mar 26)	₹242.195 ↑ 4.93 (2.08 %)
Net Assets (Cr)	₹3,285 on 31 Jan 26
Category	Equity - Small Cap
AMC	Sundaram Asset Management Company Ltd
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.94
Sharpe Ratio	0.01
Information Ratio	-0.17
Alpha Ratio	3.29
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
28 Feb 21	₹10,000
28 Feb 22	₹13,411
28 Feb 23	₹14,148
29 Feb 24	₹21,580
28 Feb 25	₹20,330
28 Feb 26	₹24,434

Sundaram Small Cap Fund SIP Returns

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

Returns for Sundaram Small Cap Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Mar 26

Duration	Returns
1 Month	-8.1%
3 Month	-5.4%
6 Month	-6.7%
1 Year	12.5%
3 Year	17.9%
5 Year	17.5%
10 Year
15 Year
Since launch	16.3%

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	3.25 Yr.

Data below for Sundaram Small Cap Fund as on 31 Jan 26

Equity Sector Allocation

Sector	Value
Consumer Cyclical	21.15%
Financial Services	20.16%
Industrials	18.8%
Health Care	10.95%
Basic Materials	9.04%
Communication Services	4.99%
Technology	4.36%
Consumer Defensive	2.51%
Real Estate	2.14%
Utility	1.15%

Asset Allocation

Asset Class	Value
Cash	4.38%
Equity	95.56%
Debt	0.06%
Other	0%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
MTAR Technologies Ltd (Industrials) Equity, Since 31 Dec 24 \| MTARTECH	4%	₹126 Cr	430,300
Craftsman Automation Ltd (Consumer Cyclical) Equity, Since 30 Jun 24 \| CRAFTSMAN	3%	₹97 Cr	132,088 ↓ -8,733
SJS Enterprises Ltd (Consumer Cyclical) Equity, Since 31 Aug 23 \| 543387	3%	₹96 Cr	577,256
Aster DM Healthcare Ltd Ordinary Shares (Healthcare) Equity, Since 30 Nov 23 \| ASTERDM	3%	₹93 Cr	1,681,362
E I D Parry India Ltd (Basic Materials) Equity, Since 31 Jul 24 \| EIDPARRY	3%	₹91 Cr	987,211 ↑ 53,583
DCB Bank Ltd (Financial Services) Equity, Since 30 Sep 24 \| DCBBANK	3%	₹89 Cr	4,443,809 ↓ -159,721
Affle 3i Ltd (Communication Services) Equity, Since 31 May 21 \| AFFLE	3%	₹88 Cr	569,587
Rategain Travel Technologies Ltd (Technology) Equity, Since 30 Jun 23 \| 543417	3%	₹88 Cr	1,434,521
Safari Industries (India) Ltd (Consumer Cyclical) Equity, Since 28 Feb 21 \| 523025	3%	₹88 Cr	431,921
PNB Housing Finance Ltd (Financial Services) Equity, Since 31 Jul 24 \| PNBHOUSING	2%	₹82 Cr	992,680 ↑ 39,072

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.