In January smallcap funds continued to draw net inflow of Rs 5721 crore, in comparison to Rs 4,668 crore mobilised in the previous December month despite continued sell-off in the smallcap category. Until thus far in calendar year 2025, the Nifty Smallcap 100 index has lost a substantial 18 per cent. Nevertheless, investors considering investment into smallcap funds for a long term can expect a higher return beating the benchmark- simply meaning these funds can generate alpha.
So, investors looking to know about the different schemes in the category that have performed well over the years, can check below
Top Smallcap Mutual Funds
Quant Small Cap Fund- Direct Plan
In this smallcap fund from the house of Quant Mutual Fund, investors Rs 10,000 monthly SIP started 10 year ago will be now worth Rs 43.98 lakh. The fund’s annualised yield is 24.52 per cent.
Nippon India Small Cap Fund- Direct Plan
With an annualised yield of 21.9 per cent, a monthly Rs 10,000 SIP in the fund (with an investment amount at Rs 12 lakh) will have grown to Rs 38.11 lakh in 10 years. This is a Crisil 4-star rated fund.
Axis Small Cap Fund- Direct Plan
This fund has delivered an annualised SIP return of 20.84 per cent return. And the SIP started 10 years ago with a monthly contribution of Rs 10,000 in the fund has grown to Rs 36.04 lakh. This fund is Crisil 3-star rated.
SBI Small Cap Fund- Direct Plan
This fund with an annualised return of 18.19 per cent has converted an investment of Rs 12 lakh (Rs 10,000 monthly SIP) into Rs 31.23 lakh.
HSBC Small Cap Fund- Direct Plan
This fund with a SIP investment of Rs 10,000 per month has given an annualised yield of 18.2 per cent, converting Rs 12 lakh worth of investment into Rs 31.28 lakh.