Best Small Cap Mutual Funds in India (2026)

Small-cap funds chase the highest growth from smaller companies, with the highest risk. Only for long-term investors who can ride out big drawdowns.

Our top pick for this is Nippon India Small Cap — One of the largest and best-performing small-cap funds, with a strong long-term record. High growth potential, but expect sharp ups and downs.

Market-risk warning: mutual funds are subject to market risk; past performance does not guarantee future returns. Information only, not investment advice.
#NameScoreCategory5Y Return (CAGR)*Expense Ratio*Risk
2Nippon India Small Cap8.9/10Small Cap~26%~0.7%Very High
6SBI Small Cap8.4/10Small Cap~25%~0.7%Very High
2

Nippon India Small Cap

One of the largest and best-performing small-cap funds, with a strong long-term record. High growth potential, but expect sharp ups and downs.

8.9
/ 10
Category
Small Cap
5Y Return (CAGR)*
~26%
Expense Ratio*
~0.7%
Risk
Very High
  • Strong long-term returns
  • Experienced management
  • Wide stock diversification
  • Very high volatility
  • Large AUM for a small-cap
  • Deep drawdowns possible
6

SBI Small Cap

A quality-focused small-cap fund with a strong long-term record, often closing to lump-sums to manage size — best accessed via SIP for the long haul.

8.4
/ 10
Category
Small Cap
5Y Return (CAGR)*
~25%
Expense Ratio*
~0.7%
Risk
Very High
  • Quality-focused selection
  • Strong long-term returns
  • Trusted fund house
  • Very high volatility
  • Lump-sum sometimes restricted
  • Small-cap drawdowns

Other fund categories

Returns and expense ratios indicative as of June 2026 and change daily. Mutual funds are subject to market risk; past performance is not a guarantee. Information only, not investment advice. Consult a SEBI-registered adviser.