10 Best Small Cap Mutual Funds 2026

Updated on June 11, 2026 , 85219 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	₹172.973 ↑ 4.06	₹72,673	100	10.8	4.6	2.7	17.9	19.5	-4.7
DSP Small Cap Fund Growth	₹208.743 ↑ 3.65	₹17,906	500	13.8	7.5	5.7	18.2	17.4	-2.8
Franklin India Smaller Companies Fund Growth	₹170.058 ↑ 4.15	₹13,850	500	10.4	3.6	-2	16.1	17.2	-8.4
IDBI Small Cap Fund Growth	₹31.8435 ↑ 0.72	₹660	500	15.8	10	5.4	17.3	17.2	-13.4
Sundaram Small Cap Fund Growth	₹275.884 ↑ 7.80	₹3,563	100	15.4	6.8	7.2	18.4	16.9	0.4
HDFC Small Cap Fund Growth	₹134.038 ↑ 2.72	₹38,168	300	5.3	-2.8	-2.6	13.6	15.9	-0.6
ICICI Prudential Smallcap Fund Growth	₹85.76 ↑ 1.90	₹8,741	100	7.7	0	-1.2	12.8	14.7	-0.4
SBI Small Cap Fund Growth	₹170.508 ↑ 3.37	₹37,141	500	10.2	1.8	0.3	12.4	13.4	-4.9
Kotak Small Cap Fund Growth	₹256.019 ↑ 4.91	₹17,416	1,000	10.1	2.5	-2	12.9	13.2	-9.1
Aditya Birla Sun Life Small Cap Fund Growth	₹91.4807 ↑ 2.20	₹5,253	1,000	14.2	7.6	6.9	16.5	13.1	-3.7
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 12 Jun 26

Research Highlights & Commentary of 10 Funds showcased

Commentary	Nippon India Small Cap Fund	DSP Small Cap Fund	Franklin India Smaller Companies Fund	IDBI Small Cap Fund	Sundaram Small Cap Fund	HDFC 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 (₹72,673 Cr).	Upper mid AUM (₹17,906 Cr).	Lower mid AUM (₹13,850 Cr).	Bottom quartile AUM (₹660 Cr).	Bottom quartile AUM (₹3,563 Cr).	Top quartile AUM (₹38,168 Cr).	Lower mid AUM (₹8,741 Cr).	Upper mid AUM (₹37,141 Cr).	Upper mid AUM (₹17,416 Cr).	Bottom quartile AUM (₹5,253 Cr).
Point 2	Established history (15+ yrs).	Established history (19+ yrs).	Established history (20+ yrs).	Established history (8+ yrs).	Oldest track record among peers (21 yrs).	Established history (18+ yrs).	Established history (18+ yrs).	Established history (16+ yrs).	Established history (21+ yrs).	Established history (19+ 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).	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: 19.55% (top quartile).	5Y return: 17.39% (top quartile).	5Y return: 17.21% (upper mid).	5Y return: 17.20% (upper mid).	5Y return: 16.85% (upper mid).	5Y return: 15.91% (lower mid).	5Y return: 14.70% (lower mid).	5Y return: 13.42% (bottom quartile).	5Y return: 13.20% (bottom quartile).	5Y return: 13.11% (bottom quartile).
Point 6	3Y return: 17.89% (upper mid).	3Y return: 18.24% (top quartile).	3Y return: 16.13% (lower mid).	3Y return: 17.28% (upper mid).	3Y return: 18.41% (top quartile).	3Y return: 13.57% (lower mid).	3Y return: 12.83% (bottom quartile).	3Y return: 12.42% (bottom quartile).	3Y return: 12.88% (bottom quartile).	3Y return: 16.51% (upper mid).
Point 7	1Y return: 2.67% (upper mid).	1Y return: 5.72% (upper mid).	1Y return: -2.01% (bottom quartile).	1Y return: 5.40% (upper mid).	1Y return: 7.16% (top quartile).	1Y return: -2.57% (bottom quartile).	1Y return: -1.18% (lower mid).	1Y return: 0.33% (lower mid).	1Y return: -1.96% (bottom quartile).	1Y return: 6.90% (top quartile).
Point 8	Alpha: 0.91 (upper mid).	Alpha: 0.00 (upper mid).	Alpha: -1.42 (bottom quartile).	Alpha: 1.25 (top quartile).	Alpha: 5.65 (top quartile).	Alpha: 0.00 (upper mid).	Alpha: -1.51 (bottom quartile).	Alpha: 0.00 (lower mid).	Alpha: -3.91 (bottom quartile).	Alpha: 0.00 (lower mid).
Point 9	Sharpe: 0.29 (upper mid).	Sharpe: 0.60 (top quartile).	Sharpe: 0.19 (lower mid).	Sharpe: 0.30 (upper mid).	Sharpe: 0.48 (top quartile).	Sharpe: 0.16 (bottom quartile).	Sharpe: 0.18 (lower mid).	Sharpe: 0.08 (bottom quartile).	Sharpe: 0.08 (bottom quartile).	Sharpe: 0.46 (upper mid).
Point 10	Information ratio: -0.16 (upper mid).	Information ratio: 0.00 (top quartile).	Information ratio: -0.47 (bottom quartile).	Information ratio: -0.45 (lower mid).	Information ratio: -0.23 (lower mid).	Information ratio: 0.00 (top quartile).	Information ratio: -0.85 (bottom quartile).	Information ratio: 0.00 (upper mid).	Information ratio: -1.03 (bottom quartile).	Information ratio: 0.00 (upper mid).

Nippon India Small Cap Fund

Highest AUM (₹72,673 Cr).
Established history (15+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 19.55% (top quartile).
3Y return: 17.89% (upper mid).
1Y return: 2.67% (upper mid).
Alpha: 0.91 (upper mid).
Sharpe: 0.29 (upper mid).
Information ratio: -0.16 (upper mid).

DSP Small Cap Fund

Upper mid AUM (₹17,906 Cr).
Established history (19+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 17.39% (top quartile).
3Y return: 18.24% (top quartile).
1Y return: 5.72% (upper mid).
Alpha: 0.00 (upper mid).
Sharpe: 0.60 (top quartile).
Information ratio: 0.00 (top quartile).

Franklin India Smaller Companies Fund

Lower mid AUM (₹13,850 Cr).
Established history (20+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 17.21% (upper mid).
3Y return: 16.13% (lower mid).
1Y return: -2.01% (bottom quartile).
Alpha: -1.42 (bottom quartile).
Sharpe: 0.19 (lower mid).
Information ratio: -0.47 (bottom quartile).

IDBI Small Cap Fund

Bottom quartile AUM (₹660 Cr).
Established history (8+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 17.20% (upper mid).
3Y return: 17.28% (upper mid).
1Y return: 5.40% (upper mid).
Alpha: 1.25 (top quartile).
Sharpe: 0.30 (upper mid).
Information ratio: -0.45 (lower mid).

Sundaram Small Cap Fund

Bottom quartile AUM (₹3,563 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 16.85% (upper mid).
3Y return: 18.41% (top quartile).
1Y return: 7.16% (top quartile).
Alpha: 5.65 (top quartile).
Sharpe: 0.48 (top quartile).
Information ratio: -0.23 (lower mid).

HDFC Small Cap Fund

Top quartile AUM (₹38,168 Cr).
Established history (18+ yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately High.
5Y return: 15.91% (lower mid).
3Y return: 13.57% (lower mid).
1Y return: -2.57% (bottom quartile).
Alpha: 0.00 (upper mid).
Sharpe: 0.16 (bottom quartile).
Information ratio: 0.00 (top quartile).

ICICI Prudential Smallcap Fund

Lower mid AUM (₹8,741 Cr).
Established history (18+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 14.70% (lower mid).
3Y return: 12.83% (bottom quartile).
1Y return: -1.18% (lower mid).
Alpha: -1.51 (bottom quartile).
Sharpe: 0.18 (lower mid).
Information ratio: -0.85 (bottom quartile).

SBI Small Cap Fund

Upper mid AUM (₹37,141 Cr).
Established history (16+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 13.42% (bottom quartile).
3Y return: 12.42% (bottom quartile).
1Y return: 0.33% (lower mid).
Alpha: 0.00 (lower mid).
Sharpe: 0.08 (bottom quartile).
Information ratio: 0.00 (upper mid).

Kotak Small Cap Fund

Upper mid AUM (₹17,416 Cr).
Established history (21+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 13.20% (bottom quartile).
3Y return: 12.88% (bottom quartile).
1Y return: -1.96% (bottom quartile).
Alpha: -3.91 (bottom quartile).
Sharpe: 0.08 (bottom quartile).
Information ratio: -1.03 (bottom quartile).

Aditya Birla Sun Life Small Cap Fund

Bottom quartile AUM (₹5,253 Cr).
Established history (19+ yrs).
Rating: 5★ (top quartile).
Risk profile: Moderately High.
5Y return: 13.11% (bottom quartile).
3Y return: 16.51% (upper mid).
1Y return: 6.90% (top quartile).
Alpha: 0.00 (lower mid).
Sharpe: 0.46 (upper mid).
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 (₹72,673 Cr).
Established history (15+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 19.55% (top quartile).
3Y return: 17.89% (lower mid).
1Y return: 2.67% (bottom quartile).
Alpha: 0.91 (lower mid).
Sharpe: 0.29 (bottom quartile).
Information ratio: -0.16 (upper mid).
Top sector: Industrials.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~97%).
High-quality debt (AAA/AA ~100%).
Largest holding HDFC Bank Ltd (~1.9%).

Below is the key information for Nippon India Small Cap Fund

Nippon India Small Cap Fund Growth
Launch Date	16 Sep 10
NAV (12 Jun 26)	₹172.973 ↑ 4.06 (2.40 %)
Net Assets (Cr)	₹72,673 on 30 Apr 26
Category	Equity - Small Cap
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.44
Sharpe Ratio	0.29
Information Ratio	-0.16
Alpha Ratio	0.91
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 May 21	₹10,000
31 May 22	₹11,954
31 May 23	₹15,166
31 May 24	₹23,187
31 May 25	₹24,609
31 May 26	₹25,719

Nippon India 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 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 12 Jun 26

Duration	Returns
1 Month	1.6%
3 Month	10.8%
6 Month	4.6%
1 Year	2.7%
3 Year	17.9%
5 Year	19.5%
10 Year
15 Year
Since launch	19.9%

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	9.42 Yr.
Kinjal Desai	25 May 18	8.02 Yr.
Amber Singhania	11 Mar 26	0.22 Yr.

Data below for Nippon India Small Cap Fund as on 30 Apr 26

Equity Sector Allocation

Sector	Value
Industrials	24.39%
Financial Services	15.49%
Consumer Cyclical	14.32%
Basic Materials	10.99%
Consumer Defensive	9.84%
Health Care	8.84%
Technology	6.74%
Utility	3.53%
Communication Services	1.13%
Real Estate	0.88%
Energy	0.45%

Asset Allocation

Asset Class	Value
Cash	2.95%
Equity	97.05%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 30 Apr 22 \| HDFCBANK	2%	₹1,370 Cr	17,754,929 ↑ 2,454,929
Multi Commodity Exchange of India Ltd (Financial Services) Equity, Since 28 Feb 21 \| MCX	2%	₹1,278 Cr	4,300,000 ↓ -1,050,645
Bharat Heavy Electricals Ltd (Industrials) Equity, Since 30 Sep 22 \| 500103	2%	₹1,216 Cr	34,507,422 ↑ 2,000,000
TD Power Systems Ltd (Industrials) Equity, Since 31 Dec 15 \| TDPOWERSYS	2%	₹1,116 Cr	9,680,747 ↓ -72,529
Apar Industries Ltd (Industrials) Equity, Since 31 Mar 17 \| APARINDS	1%	₹1,085 Cr	879,502
Karur Vysya Bank Ltd (Financial Services) Equity, Since 28 Feb 17 \| 590003	1%	₹936 Cr	31,907,252
Zydus Wellness Ltd (Consumer Defensive) Equity, Since 31 Aug 16 \| ZYDUSWELL	1%	₹878 Cr	17,273,570 ↑ 129,481
State Bank of India (Financial Services) Equity, Since 31 Oct 19 \| SBIN	1%	₹855 Cr	8,000,000
NLC India Ltd (Utilities) Equity, Since 31 Oct 22 \| NLCINDIA	1%	₹855 Cr	26,990,331
Kirloskar Brothers Ltd (Industrials) Equity, Since 31 Oct 12 \| KIRLOSBROS	1%	₹783 Cr	4,525,148

2. 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 (₹17,906 Cr).
Established history (19+ yrs).
Rating: 4★ (upper mid).
Risk profile: Moderately High.
5Y return: 17.39% (upper mid).
3Y return: 18.24% (upper mid).
1Y return: 5.72% (upper mid).
Alpha: 0.00 (bottom quartile).
Sharpe: 0.60 (top quartile).
Information ratio: 0.00 (top quartile).
Higher exposure to Consumer Cyclical vs peer median.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~92%).
Largest holding Lumax Auto Technologies Ltd (~5.4%).

Below is the key information for DSP Small Cap Fund

DSP Small Cap Fund Growth
Launch Date	14 Jun 07
NAV (12 Jun 26)	₹208.743 ↑ 3.65 (1.78 %)
Net Assets (Cr)	₹17,906 on 30 Apr 26
Category	Equity - Small Cap
AMC	DSP BlackRock Invmt Managers Pvt. Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.72
Sharpe Ratio	0.6
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 May 21	₹10,000
31 May 22	₹11,793
31 May 23	₹13,582
31 May 24	₹18,664
31 May 25	₹21,688
31 May 26	₹23,099

DSP 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 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 12 Jun 26

Duration	Returns
1 Month	3.6%
3 Month	13.8%
6 Month	7.5%
1 Year	5.7%
3 Year	18.2%
5 Year	17.4%
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	15.96 Yr.

Data below for DSP Small Cap Fund as on 30 Apr 26

Equity Sector Allocation

Sector	Value
Consumer Cyclical	32.11%
Basic Materials	16.49%
Industrials	16.24%
Health Care	9.04%
Financial Services	8.39%
Consumer Defensive	6.82%
Technology	2.07%
Communication Services	0.45%

Asset Allocation

Asset Class	Value
Cash	8.38%
Equity	91.62%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Lumax Auto Technologies Ltd (Consumer Cyclical) Equity, Since 30 Jun 18 \| LUMAXTECH	5%	₹963 Cr	5,937,441 ↓ -259,193
Kirloskar Oil Engines Ltd (Industrials) Equity, Since 31 Mar 23 \| KIRLOSENG	4%	₹639 Cr	3,762,866
Thangamayil Jewellery Ltd (Consumer Cyclical) Equity, Since 30 Nov 21 \| THANGAMAYL	4%	₹627 Cr	1,584,955 ↓ -92,953
Jubilant Ingrevia Ltd Ordinary Shares (Basic Materials) Equity, Since 31 Dec 22 \| JUBLINGREA	3%	₹500 Cr	7,000,000
Welspun Corp Ltd (Basic Materials) Equity, Since 31 Mar 21 \| 532144	3%	₹476 Cr	3,755,671 ↓ -1,744,329
Sansera Engineering Ltd (Consumer Cyclical) Equity, Since 30 Jun 24 \| SANSERA	2%	₹445 Cr	1,770,029
LT Foods Ltd (Consumer Defensive) Equity, Since 31 Dec 17 \| 532783	2%	₹431 Cr	10,000,000
Dodla Dairy Ltd (Consumer Defensive) Equity, Since 30 Jun 21 \| DODLA	2%	₹412 Cr	3,750,000
Triveni Engineering & Industries Ltd (Consumer Defensive) Equity, Since 31 Aug 17 \| 532356	2%	₹378 Cr	9,169,032 ↓ -30,968
SPR Auto Technologies Ltd (Consumer Cyclical) Equity, Since 31 Aug 24 \| SHRIPISTON	2%	₹377 Cr	1,081,165

3. 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 (₹13,850 Cr).
Established history (20+ yrs).
Rating: 4★ (lower mid).
Risk profile: Moderately High.
5Y return: 17.21% (lower mid).
3Y return: 16.13% (bottom quartile).
1Y return: -2.01% (bottom quartile).
Alpha: -1.42 (bottom quartile).
Sharpe: 0.19 (bottom quartile).
Information ratio: -0.47 (bottom quartile).
Top sector: Industrials.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~95%).
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 (12 Jun 26)	₹170.058 ↑ 4.15 (2.50 %)
Net Assets (Cr)	₹13,850 on 30 Apr 26
Category	Equity - Small Cap
AMC	Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.72
Sharpe Ratio	0.19
Information Ratio	-0.47
Alpha Ratio	-1.42
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 May 21	₹10,000
31 May 22	₹11,163
31 May 23	₹14,338
31 May 24	₹22,107
31 May 25	₹22,960
31 May 26	₹22,890

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 12 Jun 26

Duration	Returns
1 Month	0.9%
3 Month	10.4%
6 Month	3.6%
1 Year	-2%
3 Year	16.1%
5 Year	17.2%
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	15.34 Yr.
Sandeep Manam	18 Oct 21	4.62 Yr.
Akhil Kalluri	8 Sep 22	3.73 Yr.

Data below for Franklin India Smaller Companies Fund as on 30 Apr 26

Equity Sector Allocation

Sector	Value
Industrials	19.73%
Consumer Cyclical	18.73%
Financial Services	16.72%
Basic Materials	10.59%
Health Care	9.35%
Technology	8.56%
Real Estate	3.77%
Utility	3.6%
Consumer Defensive	3.55%

Asset Allocation

Asset Class	Value
Cash	5.39%
Equity	94.61%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Syrma SGS Technology Ltd (Technology) Equity, Since 31 Aug 22 \| SYRMA	2%	₹339 Cr	3,540,297 ↓ -355,567
MTAR Technologies Ltd (Industrials) Equity, Since 31 Oct 25 \| MTARTECH	2%	₹334 Cr	516,982 ↓ -21,886
Equitas Small Finance Bank Ltd Ordinary Shares (Financial Services) Equity, Since 31 Oct 20 \| EQUITASBNK	2%	₹321 Cr	48,064,081
Kajaria Ceramics Ltd (Industrials) Equity, Since 30 Apr 25 \| 500233	2%	₹315 Cr	2,649,656
Brigade Enterprises Ltd (Real Estate) Equity, Since 30 Jun 14 \| 532929	2%	₹306 Cr	3,868,691
Eris Lifesciences Ltd Registered Shs (Healthcare) Equity, Since 30 Sep 19 \| ERIS	2%	₹296 Cr	2,233,791
PNB Housing Finance Ltd (Financial Services) Equity, Since 30 Sep 24 \| PNBHOUSING	2%	₹285 Cr	2,721,134 ↑ 88,178
Kirloskar Oil Engines Ltd (Industrials) Equity, Since 30 Nov 22 \| KIRLOSENG	2%	₹278 Cr	1,638,600 ↓ -150,000
Aster DM Healthcare Ltd Ordinary Shares (Healthcare) Equity, Since 31 Jul 23 \| ASTERDM	2%	₹275 Cr	3,925,704
CESC Ltd (Utilities) Equity, Since 30 Apr 24 \| CESC	2%	₹251 Cr	13,401,420

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 (₹660 Cr).
Established history (8+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 17.20% (bottom quartile).
3Y return: 17.28% (bottom quartile).
1Y return: 5.40% (lower mid).
Alpha: 1.25 (upper mid).
Sharpe: 0.30 (lower mid).
Information ratio: -0.45 (bottom quartile).
Higher exposure to Industrials vs peer median.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~96%).
Largest holding Garware Hi-Tech Films Ltd (~3.6%).

Below is the key information for IDBI Small Cap Fund

IDBI Small Cap Fund Growth
Launch Date	21 Jun 17
NAV (12 Jun 26)	₹31.8435 ↑ 0.72 (2.31 %)
Net Assets (Cr)	₹660 on 30 Apr 26
Category	Equity - Small Cap
AMC	IDBI Asset Management Limited
Rating	Not Rated
Risk	Moderately High
Expense Ratio	2.3
Sharpe Ratio	0.3
Information Ratio	-0.45
Alpha Ratio	1.25
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
31 May 21	₹10,000
31 May 22	₹11,961
31 May 23	₹13,987
31 May 24	₹20,437
31 May 25	₹21,387
31 May 26	₹22,961

IDBI 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 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 12 Jun 26

Duration	Returns
1 Month	2.6%
3 Month	15.8%
6 Month	10%
1 Year	5.4%
3 Year	17.3%
5 Year	17.2%
10 Year
15 Year
Since launch	13.8%

Historical performance (Yearly) on absolute basis

Year	Returns
2025	-13.4%
2024	40%
2023	33.4%
2022	2.4%
2021	64.7%
2020	19%
2019	-4.4%
2018	-15%
2017
2016

Fund Manager information for IDBI Small Cap Fund

Name	Since	Tenure
Dikshit Mittal	24 Jul 25	0.85 Yr.
Mahesh Bendre	1 Jul 24	1.92 Yr.

Data below for IDBI Small Cap Fund as on 30 Apr 26

Equity Sector Allocation

Sector	Value
Industrials	29.3%
Basic Materials	14.75%
Consumer Cyclical	13.57%
Financial Services	10.91%
Consumer Defensive	9.88%
Health Care	6.7%
Technology	5.75%
Utility	3.01%
Real Estate	1.36%
Communication Services	1%

Asset Allocation

Asset Class	Value
Cash	3.77%
Equity	96.23%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Garware Hi-Tech Films Ltd (Basic Materials) Equity, Since 30 Sep 25 \| 500655	4%	₹24 Cr	59,787 ↑ 27,822
Navin Fluorine International Ltd (Basic Materials) Equity, Since 30 Sep 19 \| NAVINFLUOR	3%	₹20 Cr	29,286 ↑ 3,908
Manorama Industries Ltd (Consumer Defensive) Equity, Since 31 Dec 24 \| 541974	3%	₹18 Cr	120,282 ↑ 679
Avalon Technologies Ltd (Technology) Equity, Since 31 Aug 23 \| AVALON	3%	₹18 Cr	171,362 ↑ 24,615
Allied Blenders and Distillers Ltd (Consumer Defensive) Equity, Since 31 Jul 24 \| ABDL	3%	₹17 Cr	326,615 ↑ 475
Schneider Electric Infrastructure Ltd (Industrials) Equity, Since 31 Aug 25 \| SCHNEIDER	3%	₹17 Cr	133,576
KSH International Ltd (Industrials) Equity, Since 31 Dec 25 \| KSHINTL	3%	₹17 Cr	249,380 ↓ -20,000
Carraro India Ltd (Consumer Cyclical) Equity, Since 31 Dec 25 \| CARRARO	2%	₹14 Cr	258,560 ↑ 60,000
Bharat Bijlee Ltd (Industrials) Equity, Since 31 May 25 \| BBL	2%	₹14 Cr	45,646 ↑ 5,000
Arvind Fashions Ltd (Consumer Cyclical) Equity, Since 29 Feb 24 \| ARVINDFASN	2%	₹14 Cr	308,247 ↑ 30,000

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 (₹3,563 Cr).
Oldest track record among peers (21 yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 16.85% (bottom quartile).
3Y return: 18.41% (top quartile).
1Y return: 7.16% (top quartile).
Alpha: 5.65 (top quartile).
Sharpe: 0.48 (upper mid).
Information ratio: -0.23 (lower mid).
Top sector: Industrials.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~95%).
High-quality debt (AAA/AA ~100%).
Largest holding MTAR Technologies Ltd (~5.3%).

Below is the key information for Sundaram Small Cap Fund

Sundaram Small Cap Fund Growth
Launch Date	15 Feb 05
NAV (12 Jun 26)	₹275.884 ↑ 7.80 (2.91 %)
Net Assets (Cr)	₹3,563 on 30 Apr 26
Category	Equity - Small Cap
AMC	Sundaram Asset Management Company Ltd
Rating	☆☆☆
Risk	Moderately High
Expense Ratio	1.94
Sharpe Ratio	0.48
Information Ratio	-0.23
Alpha Ratio	5.65
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 May 21	₹10,000
31 May 22	₹11,047
31 May 23	₹13,392
31 May 24	₹18,985
31 May 25	₹20,769
31 May 26	₹22,789

Sundaram Small Cap Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹458,689.
Net Profit of ₹158,689 Invest Now

Returns for Sundaram Small Cap Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 12 Jun 26

Duration	Returns
1 Month	2.1%
3 Month	15.4%
6 Month	6.8%
1 Year	7.2%
3 Year	18.4%
5 Year	16.9%
10 Year
15 Year
Since launch	16.8%

Historical performance (Yearly) on absolute basis

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

Fund Manager information for Sundaram Small Cap Fund

Name	Since	Tenure
Rohit Seksaria	1 Nov 22	3.58 Yr.
Shalav Saket	20 Mar 26	0.2 Yr.

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

Equity Sector Allocation

Sector	Value
Industrials	20.6%
Financial Services	19.88%
Consumer Cyclical	19.84%
Health Care	11.77%
Basic Materials	8.97%
Communication Services	4.24%
Technology	3.77%
Consumer Defensive	2.57%
Real Estate	2.13%
Utility	1.15%

Asset Allocation

Asset Class	Value
Cash	5.05%
Equity	94.92%
Debt	0.03%
Other	0%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
MTAR Technologies Ltd (Industrials) Equity, Since 31 Dec 24 \| MTARTECH	5%	₹187 Cr	289,884 ↓ -59,627
Aster DM Healthcare Ltd Ordinary Shares (Healthcare) Equity, Since 30 Nov 23 \| ASTERDM	3%	₹118 Cr	1,681,362
SJS Enterprises Ltd (Consumer Cyclical) Equity, Since 31 Aug 23 \| SJS	3%	₹104 Cr	577,256
PNB Housing Finance Ltd (Financial Services) Equity, Since 31 Jul 24 \| PNBHOUSING	3%	₹100 Cr	957,209 ↓ -35,471
Rategain Travel Technologies Ltd (Technology) Equity, Since 30 Jun 23 \| RATEGAIN	3%	₹92 Cr	1,534,556
E I D Parry India Ltd (Basic Materials) Equity, Since 31 Jul 24 \| EIDPARRY	2%	₹88 Cr	1,045,263
Eternal Ltd (Consumer Cyclical) Equity, Since 30 Nov 24 \| ETERNAL	2%	₹86 Cr	3,461,769 ↑ 137,756
Affle 3i Ltd (Communication Services) Equity, Since 31 May 21 \| AFFLE	2%	₹84 Cr	594,278
DCB Bank Ltd (Financial Services) Equity, Since 30 Sep 24 \| DCBBANK	2%	₹83 Cr	4,443,809
Craftsman Automation Ltd (Consumer Cyclical) Equity, Since 30 Jun 24 \| CRAFTSMAN	2%	₹82 Cr	106,539

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.