Small-cap funds invest a major portion of their investible corpus into equity or equity-related instruments of small-cap companies. According to the Securities and Exchange Board of India (SEBI), small-cap schemes need to invest at least 65 per cent of their total investment in small-cap companies. Small-cap stocks are highly sensitive to market volatility. Therefore, when the market collapses, these stocks are probably the worst affected. Hence, it is important to have a long-term investment window while investing in small cap funds so that you give sufficient time to your investment to generate high returns. On that note, check out the top 5 small cap mutual funds with highest annualised SIP returns in 5 years, see how a Rs 25,000 monthly SIP investment in the No. 1 scheme has sprung to Rs 33.34 lakh.
Quant Small Cap Fund
In 5 years, Quant Small Cap Fund has given 32.65 per cent annualised SIP return. Its assets under management (AUM) are Rs 22,832 crore, while its net asset value (NAV) is Rs 250.2255. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 17.7 per cent since its launch in January 2013.
With an expense ratio of 0.68 per cent, the fund has Rs 1,000 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment. With a monthly SIP of Rs 25,000 and a total investment of Rs 15,00,000 in 5 years, the fund has given a total of Rs 33,34,000. The fund has 65.75 per cent small cap stocks in its equity holdings.
Bandhan Small Cap Fund
The Bandhan Small Cap Fund has given a 30.41 per cent annualised return over the past 5 years. It has assets under management (AUM) of Rs 8,475 crore, while its net asset value (NAV) is Rs 44.36 as on March 27, 2025. Benchmarked against BSE 250 SmallCap TRI, this fund has given a 34.02 per cent annualised return since its launch in February 2020.
At an expense ratio of 0.46 per cent, the fund has set Rs 500 as the minimum monthly investment and Rs 5,000 as the minimum lump sum investment. A Rs 25,000 monthly investment in the Bandhan Small Cap Fund has converted into Rs 31,63,000 in 5 years.
Nippon India Small Cap Fund
In 5 years, Nippon India Small Cap Fund has given a 28.61 per cent annualised SIP return. Its assets under management (AUM) are Rs 50,826 crore, while its net asset value (NAV) is Rs 167.66. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 24.91 per cent since its launch in January 2013.
With an expense ratio of 0.74 per cent, the fund has Rs 500 as a minimum monthly investment. With a monthly SIP of Rs 25,000, this fund has given a total corpus of Rs 30,31,000 in 5 years. The fund has 67.12 per cent small cap stocks in its equity holdings.
Invesco India Smallcap Fund
The Invesco India Smallcap Fund has given a 27.63 per cent annualised return over the past 5 years. It has assets under management (AUM) of Rs 5,312 crore, while its net asset value (NAV) is Rs 40.32 as on March 27, 2025. Benchmarked against BSE 250 SmallCap TRI, this fund has given a 24.14 per cent annualised return since its launch in October 2018.
At an expense ratio of 0.41 per cent, the fund has set Rs 500 as the minimum monthly investment and Rs 1,000 as the minimum lump sum investment. A Rs 25,000 monthly investment in the Invesco India Smallcap Fund has converted into Rs 29,62,000 in 5 years.
Tata Small Cap Fund
In 5 years, Tata Small Cap Fund has given a 27.55 per cent annualised SIP return. Its assets under management (AUM) are Rs 8,274 crore, while its net asset value (NAV) is Rs 40.9. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 24.69 per cent since its launch in January 2013.
With an expense ratio of 0.37 per cent, the fund has Rs 500 as a minimum monthly investment. With a monthly SIP of Rs 25,000 and a total investment of Rs 15,00,000 in 5 years, the fund has given a total of Rs 29,56,000. The fund has 84.19 per cent small cap stocks in its equity holdings.
DISCLAIMER: Investments carry risk; seek professional guidance
