Small Cap Mutual Funds in India 2026: Explore & Compare Funds

Q: Are small cap funds a safe investment?

Yes, small cap funds invest in stocks of small cap companies with market capitalization less than Rs. 5000 Cr. These are early-stage businesses with the potential to become large caps in the future.

Q: Who should invest in small cap funds?

Investors seeking aggressive returns from diversified stocks of companies with small market capitalization offering very high potential for growth but at an equally high risk. They are suitable for investors with very high risk appetite and a 5-7+ year time horizon.

Q: Can we withdraw money anytime from small cap funds?

Yes, you can withdraw money anytime from small cap funds by placing a redemption request. The funds are credited to your account in 3-4 business days.

Q: Are small cap funds good for the long term?

Yes, small cap funds are ideal for long-term investors as these businesses require a longer time period to grow and deliver returns. These funds can be very volatile in the short term.

Q: What is the minimum investment in small cap funds?

You can start investing in small cap funds with an amount as low as Rs. 100.

Small Cap Mutual Funds

Fund Name	3Y Return	Risk	Fund Size (cr.)
Bandhan Small Cap Fund	28.38%	28.38%	₹ 25345.79
ITI Small Cap Fund	24.99%	24.99%	₹ 2936.51
Bank of India Small Cap Fund	23.23%	23.23%	₹ 2167.57
Invesco India Smallcap Fund	23.21%	23.21%	₹ 11038.23
Mahindra Manulife Small Cap Fund	22.44%	22.44%	₹ 4461.52
Quant Small Cap Fund	20.23%	20.23%	₹ 30373.69
DSP Small Cap Fund	20.04%	20.04%	₹ 17905.82
Nippon India Small Cap Fund	19.35%	19.35%	₹ 72672.99
Union Small Cap Fund	19.20%	19.20%	₹ 1979.63
Sundaram Small Cap Fund	19.04%	19.04%	₹ 3562.91

Showing 36 mutual funds

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Best Small Cap Funds by 3 Year Returns

Fund Name	Return	Fund Size (cr.)	Risk	Cat. Avg
Bandhan Small Cap Fund	28.38%	₹ 25345.79	28.38%	16.74%	Invest Now
ITI Small Cap Fund	24.99%	₹ 2936.51	24.99%	16.74%	Invest Now
Bank of India Small Cap Fund	23.23%	₹ 2167.57	23.23%	16.74%	Invest Now
Invesco India Smallcap Fund	23.21%	₹ 11038.23	23.21%	16.74%	Invest Now
Mahindra Manulife Small Cap Fund	22.44%	₹ 4461.52	22.44%	16.74%	Invest Now

Frequently Asked Questions

Q1. Are small cap funds a safe investment?

Q2. Who should invest in small cap funds?

Q3. Can we withdraw money anytime from small cap funds?

Q4. Are small cap funds good for the long term?

Q5. What is the minimum investment in small cap funds?

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