Small cap stocks are highly sensitive to market volatility. Therefore, when the market collapses, these stocks are probably the worst affected. But small cap firms have a vast potential to offer high returns. 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.
Top mutual funds in small cap categories have given impressive returns of 22-25% over 10 years. A monthly investment of Rs 20,000 has grown to Rs 78.12 lakh- Rs 94.54 lakh. These funds have outperformed their benchmarks, making them attractive options for investors. On that note, check out the top small cap mutual funds with the highest annualised SIP returns in 10 years, see how a Rs 20,000 monthly SIP investment in the No. 1 scheme has sprung to Rs 87.5 lakh.
Quant Small Cap Fund
In 10 years, Quant Small Cap Fund has given a 25.86 per cent annualised SIP return. Its assets under management (AUM) are Rs 28,205 crore, while its net asset value (NAV) is Rs 269.56. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 18.05 per cent since its launch in January 2013.
With an expense ratio of 0.66 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 20,000 and a total investment of Rs 24,00,000 in 10 years, the fund has given a total of Rs 94,54,000.
Nippon India Small Cap Fund
Nippon India Small Cap Fund has given a 24.43 per cent annualised SIP return in 10 years. Its assets under management (AUM) are Rs 63,007 crore, while its net asset value (NAV) is Rs 185.21. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 25.4 per cent since its launch in January 2013.
With an expense ratio of 0.65 per cent, the fund has Rs 500 as a minimum SIP investment. With a monthly SIP of Rs 20,000 and a total investment of Rs 24,00,000 in 10 years, the fund has given a total of Rs 87,50,000.
HSBC Small Cap Fund
HSBC Small Cap Fund has given a 21.54 per cent annualised SIP return in 10 years. Its assets under management (AUM) are Rs 16,061 crore, while its net asset value (NAV) is Rs 89.19. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 21.76 per cent since its launch in April 2014.
With an expense ratio of 0.63 per cent, the fund has Rs 1,000 as a minimum SIP investment and Rs 5,000 as a minimum lump sum investment. With a monthly SIP of Rs 20,000 and a total investment of Rs 24,00,000 in 10 years, the fund has given a total corpus of Rs 74,84,000.
Axis Small Cap Fund
In 10 years, Axis Small Cap Fund has given a 22.33 per cent annualised SIP return. Its assets under management (AUM) are Rs 25,062 crore, while its net asset value (NAV) is Rs 119.9 as of June 19, 2025. Benchmarked against NIFTY Smallcap 250 TRI, the fund has given annualised returns of 23.99 per cent since its launch in January 2013.
With an expense ratio of 0.55 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 20,000 and a total investment of Rs 24,00,000 in 10 years, the fund has given a total corpus of Rs 78,12,000.