One of the Best Small-Cap Mutual Funds

The following are the best small-cap mutual funds and some good Small-cap mutual fund returns in terms of 3-year returns, consistency, and prowess of the fund manager:



1. Nippon India Small Cap Fund

  • 3-Year CAGR: ~33 %

  • AUM: above 45,000 Cr

  • Why It is Good: Good track record, well diversified across sectors.

2. SBI Small Cap Fund

  • 3-year CAGR: ~ 31%


  • AUM: 22,000++ Cr


  • Why It is Good: It has a reputation for disciplined stock picking and low churn.

3. Quant small-cap fund

  • 3Y CAGR: /38%.


  • AUM: 10,000+ Cr


  • Why It Is Good: It is aggressive in momentum-driven strategies, generating high alpha.

4. Kotak Small Cap Fund

  • CAGR (3 yrs): ~28 %


  • AUM: 8.500+ Cr


  • Why It is Good: This is a good portfolio choice of stocks, and moderate-risk takers can deal with them.

5. Axis small-cap fund

  • CAGR of 3 years: Approximately 26 percent



  • AUM: Rs 12,000Cr+


  • Why it is Good: It is concentrated in quality mid- and small-cap names, and has less volatility.


Note: Returns are subject to market risks and may fluctuate. Investing requires professional advice. It is always good to consult a SEBI-registered advisor. “

Who shall invest in the small-cap funds?

  • Long-term investors (5 years or more)

  • Sticky companies with a high-risk appetite

  • It is a great way to earn money, but not a steady income.

  • Investors who can withstand the fluctuations of the market

Which Has Better SIP or Lump Sum?

The most suitable avenue to utilize with small-cap funds is a SIP (Systematic Investment Plan).


It neutralizes market volatility and instills discipline.

Tip: Risk Management:

Do not put all your chickens in one basket; that is, you should diversify across the categories. Small caps should not be your only bet. Blend with large and mid-cap funds to get a balanced portfolio.

Final Words

Best Small-cap mutual funds can be a money generator, provided they are used wisely. These funds can give multi-bagger returns when they are dependent on powerful research work and a patient approach. Nevertheless, do not forget that high returns are usually associated with high risk. 


Stuck in choosing an appropriate small-cap fund? Contact Rudra Sebi-rated share-broker, and mutual funds advisor.

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