Top 5 Smallcap Mutual Funds with Highest SIP Returns: Looking to grow your wealth with smallcap mutual funds? You’re in the right place! Smallcap funds invest in companies ranked 251st and beyond by market capitalisation, offering massive growth potential for patient investors.
We’ve analyzed the top performers, and the results are mind-blowing. The best fund has turned a simple Rs 13,000 monthly SIP into a whopping Rs 13.97 lakh in just 5 years! Let’s dive into the top 5 smallcap mutual funds based on data from AMFI as of December 9, 2025.
Complete Comparison Table: Top 5 Smallcap Mutual Funds with Highest SIP Returns
| Fund Name | 5-Year Returns (%) | Total Value (Rs 13,000/month) | AUM (Crore) | NAV (Rs) | Expense Ratio (%) | Min SIP (Rs) |
|---|---|---|---|---|---|---|
| Bandhan Small Cap Fund | 23.57 | 13,97,000 | 17,380 | 46.46 | 1.63 | 500 |
| Invesco India Smallcap Fund | 21.39 | 13,25,000 | 9,000 | 41.98 | 1.71 | 3,000 |
| Quant Small Cap Fund | 19.66 | 12,71,000 | 30,504 | 252.53 | 1.59 | 3,000 |
| Nippon India Small Cap Fund | 19.57 | 12,68,000 | 68,969 | 165.5 | 1.39 | 3,000 |
| ITI Small Cap Fund | 18.62 | 12,39,000 | 2,835 | 28.01 | 1.86 | 3,000 |
1. Bandhan Small Cap Fund – The Champion Performer
The Bandhan Small Cap Fund takes the top spot with an impressive 23.57% annualised return over 5 years. This fund has been a wealth creator for disciplined investors.
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Key Details:
- Assets Under Management (AUM): Rs 17,380 crore
- Net Asset Value (NAV): Rs 46.46
- Benchmark: BSE 250 SmallCap TRI
- Since Launch Returns: 30.4% annualised (launched February 2020)
- Expense Ratio: 1.63%
- Minimum SIP: Just Rs 500 (lowest in the list!)
- Minimum Lumpsum: Rs 1,000
What makes this fund special is its low entry barrier – you can start with just Rs 500 per month!
2. Invesco India Smallcap Fund – Strong Second
The Invesco India Smallcap Fund delivers solid returns with a 21.39% annualised return over the last 5 years.
Key Details:
- AUM: Rs 9,000 crore
- NAV: Rs 41.98
- Benchmark: BSE 250 SmallCap TRI
- Since Launch Returns: 22.22% annualised (launched October 2018)
- Expense Ratio: 1.71%
- Minimum SIP: Rs 3,000
- Minimum Lumpsum: Rs 10,000
3. Quant Small Cap Fund – The Veteran
With a 19.66% annualised return, the Quant Small Cap Fund is the oldest fund on this list, proving its staying power since 1996.
Key Details:
- AUM: Rs 30,504 crore (second largest)
- NAV: Rs 252.53 (highest NAV in the list)
- Benchmark: NIFTY Smallcap 250 TRI
- Since Launch Returns: 12.61% annualised (launched September 1996)
- Expense Ratio: 1.59% (second lowest)
- Minimum SIP: Rs 3,000
- Minimum Lumpsum: Rs 10,000
4. Nippon India Small Cap Fund – The Giant
The Nippon India Small Cap Fund is the largest smallcap fund with massive investor trust, delivering 19.57% annualised returns.
Key Details:
- AUM: Rs 68,969 crore (largest in the list!)
- NAV: Rs 165.5
- Benchmark: NIFTY Smallcap 250 TRI
- Since Launch Returns: 20.25% annualised (launched August 2010)
- Expense Ratio: 1.39% (lowest expense ratio!)
- Minimum SIP: Rs 3,000
This fund’s massive AUM and lowest expense ratio make it a favorite among long-term investors.
5. ITI Small Cap Fund – The Dark Horse
Rounding up the top 5, the ITI Small Cap Fund offers 18.62% annualised returns.
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Key Details:
- AUM: Rs 2,835 crore
- NAV: Rs 28.01
- Benchmark: NIFTY Smallcap 250 TRI
- Since Launch Returns: 19.42% annualised (launched January 2020)
- Expense Ratio: 1.86% (highest in the list)
- Minimum SIP: Rs 3,000
- Minimum Lumpsum: Rs 10,000
FAQs
Q1. What exactly are smallcap mutual funds?
Q2. Which is the best smallcap fund for SIP investment?
Q3. What is the minimum amount needed to start a SIP in these funds?
Q4. What is an expense ratio and why does it matter?
Q5. Are smallcap funds suitable for all investors?
Q6. How to calculate small-cap?
Answer: Market cap is calculated by multiplying the total number of outstanding shares by the market price of each share. For example, if a company has 5,00,000 shares trading at ₹500 each, its market cap is ₹25 crores (5,00,000 shares x ₹500). Try Sip calculator.
Disclaimer: The information provided is for educational purposes only. Past performance does not guarantee future returns. Please consult with a certified financial advisor before making any investment decisions. Mutual fund investments are subject to market risks.
Ajay Yadav is a financial writer who simplifies money, savings, and investing for everyday readers. He creates easy-to-understand content that helps people make smarter financial decisions and build long-term wealth.
