Small cap mutual funds continue to attract investor interest. According to AMFI data for April 2025, equity mutual funds saw a net inflow of ₹24,269 crore, with ₹4,000 crore flowing into small cap funds.
During January to March 2025, equity funds received a total of ₹94,073 crore, out of which ₹13,535 crore went into small caps.
Let’s look at the top 5 small cap mutual funds that delivered the best returns for SIP investors over the last five years.
Overview of the Small Cap Segment
As of 30 April 2025, the mutual fund industry’s total AUM (Assets Under Management) stood at ₹70 lakh crore.
Out of this, equity funds held ₹30.57 lakh crore, while small cap funds alone held ₹3.07 lakh crore. Currently, there are 30 small cap schemes in the market with a total of 2.51 crore folios.
Top 5 Small Cap Mutual Funds Based on 5-Year SIP Returns
Among the small cap category, the best performing funds gave over 50% CAGR returns to lump sum investors over five years.
The lowest return among them was 32% CAGR. Out of the 30 available schemes, 21 were active five years ago.
Based on AMFI data as of May 20, 2025, here are the top 5 small cap funds for SIP investors:
1. Quant Small Cap Fund
NAV: ₹270
AUM: ₹26,200 crore
5-Year Lump Sum Return: Over 51% CAGR, total return over 700%
5-Year SIP Return: 32% CAGR, net return of 118%
2. Bandhan Small Cap Fund
NAV: ₹44 (Regular Plan)
AUM: ₹10,250 crore
5-Year Lump Sum Return: Over 38% CAGR, total return over 400%
5-Year SIP Return: 29.5% CAGR, net return of 100%
3. Nippon India Small Cap Fund
NAV: ₹164 (Regular Plan)
AUM: ₹58,000 crore
5-Year Lump Sum Return: Over 41% CAGR, total return over 455%
5-Year SIP Return: 28% CAGR, net return of 100%
4. Franklin India Small Cap Fund
NAV: ₹168 (Regular Plan)
AUM: ₹12,530 crore
5-Year Lump Sum Return: Over 37% CAGR, total return 395%
5-Year SIP Return: 26% CAGR, net return of 90%
5. HSBC Small Cap Fund
NAV: ₹78 (Regular Plan)
AUM: ₹14,750 crore
5-Year Lump Sum Return: Over 38% CAGR, total return over 395%
5-Year SIP Return: 25% CAGR, net return of 85%.
