Top Small-cap SIP Mutual Funds: Small-cap mutual funds are popular among investors seeking high returns. These mutual funds invest most of their money in small-cap companies. As per Association of Mutual Funds in India (AMFI), small-cap companies are those with market capitalisation above the 250th-ranked company in the list. AMFI’s classification says that a company with a market capitalisation of less than Rs 100 crores can be considered a small-cap firm. AMFI says small-cap mutual funds need to invest at least 65 per cent of their money in small-cap companies. Since these companies are in their growth stage, small-cap mutual funds may rise faster than large- and mid-cap mutual funds. But these mutual funds are also to fall the first in a bearish market. The small-cap mutual fund category has risen by 55.84 per cent in the one year, 26.69 per cent in the three years and 29.60 per cent in the five-year period (As per Value Research data). Many of the small-cap mutual funds have witnessed SIP returns (XIRR) of up to 40 per cent in the three-year period. This write-up has a list of top 5 small-cap mutual funds in the three years and what Rs 5,000 and Rs 10,000.

Quant Small Cap Fund – Direct Plan

The fund at top has given 43.83 per cent SIP returns in the three-year period. The fund has assets under management (AUM) of  Rs 21,243 crore, while its net asset value (NAV) is worth Rs 285.5446. The fund has expense ratio of 0.64 per cent. The minimum SIP investment in the fund is Rs 1,000, while the minimum lump sum investment is Rs 5,000. 
A Rs 5,000 monthly SIP in the fund in the three years, or a Rs 1.80 lakh investment, has given a total of Rs 3,30,787.
On the other hand, a Rs 10,000 monthly SIP in the fund in the three years, or a Rs 3.60 lakh investment, has given a total of Rs 6,61,575.

ITI Small Cap Direct

Nippon India Small Cap Direct

Franklin India Smaller Companies Direct

Bandhan Small Cap Direct