Synopsis: If you are looking to start investing with a small monthly amount, this article explains top 6 small and midcap mutual funds that have delivered consistent returns in past years.
Small-cap and mid-cap mutual funds have gained more and more investors seeking greater returns over the long term than the large-cap funds. Although slightly more volatile, these funds also have the prospects of investing in upcoming companies that can be the future market leaders. Small-cap and mid-cap mutual funds enable investors to be involved in the development of the emerging companies that could become the future market leaders.
Top small-cap mutual funds with a min SIP of ₹100
1. Invesco India Small Cap Fund Direct Growth
- NAV: ₹42.07 (as of 16 March 2026)
- AUM: ₹9,716.40 Cr
- Exit load: 1% within 1 year
- Expense ratio: 0.40%
Performance Snapshot
- 1Y Returns: 11.7%
- 3Y CAGR: 23.6%
- 5Y CAGR: 20.9%
The fund allocates a minimum of 65% of its funds in small-cap stocks as the main objectives include companies with the rank of less than 250 in terms of market capitalisation. It takes a bottom-up stock-picking strategy, which is based on fundamentally strong businesses whose growth potentials are high. A liquidity amount is kept in cash or debt instruments that are minimal.
2. Nippon India Small Cap Fund Direct Growth
- NAV: ₹171.35 (as of 16 March 2026)
- AUM: ₹67,641.50 Cr
- Exit load: 1% if within 1 year
- Expense ratio: 0.66%
Performance Snapshot
- 1Y Returns: 7.73%
- 3Y CAGR: 20.0%
- 5Y CAGR: 21.4%
The fund is invested mainly in small-cap stocks in any industry, with a minimum 65% investments in this sector. It pursues an active investment policy and selectively exposes itself to the mid-cap stocks in order to maximize returns. The portfolio is very diversified with an aim of coming up with the future market leaders, as it combats risk.
3. Kotak Small Cap Fund Direct Growth
- NAV: ₹267.24 (as of 16 March 2026)
- AUM: ₹16,870.61 Cr
- Exit load: 1% within 1 year
- Expense ratio: 0.55%
Performance Snapshot
- 1Y Returns: 2.85%
- 3Y CAGR: 14.2%
- 5Y CAGR: 15.0%
Kotak Small Cap Fund invests most of its funds in small-cap equity investments that are specifically in companies in the early stages of development with a growthable business model. It has a bottom-up based, research-based method of stock selection but has a stable amount of exposure to debt and cash. The fund is meant to be long term capital gain but at a higher risk.
Also Read: DIY Asset Allocation vs Multi-Asset Mutual Funds: Which Strategy Is Better for Investors?
Top 3 Mid-cap mutual funds with a min SIP of ₹100
1. HDFC Mid Cap Fund Direct Growth
- NAV: ₹205.63 (as of 16 March 2026)
- AUM: ₹94,256.90 Cr
- Exit load: 1% within 1 year
- Expense ratio: 0.77%
Performance Snapshot
- 1Y Returns: 14.93%
- 3Y CAGR: 24.2%
- 5Y CAGR: 20.8%
The portfolio of this fund is predominantly in mid-cap equities (minimum 65%), in the companies ranked 101-250 by market capitalization. It is based on a combination of growth and value investing, to spread across industries to embrace scalable businesses. It can place a small percentage in large-cap or debt instruments, which are stable and have a high liquidity level.
2. Nippon India Growth Mid Cap Fund Direct Growth
- NAV: ₹4,385.99 (as of 16 March 2026)
- AUM: ₹43,982.51 Cr
- Exit load: 1% if redeemed within 1 month
- Expense ratio: 0.76%
Performance snapshot
- 1Y Returns: 16.52%
- 3Y CAGR: 25.3%
- 5Y CAGR: 20.9%
The fund is also majorly invested in mid-cap stocks (more than 65%) with great emphasis on growth-oriented businesses in various fields. It is also pursuing an active management approach where only large-cap and small-cap stocks are selectively exposed to increase returns. The portfolio has been diversified to spread the risk and focus on long-term capital growth.
3. Sundaram Mid Cap Fund Direct Growth
- NAV: ₹1,431.24 (as of 16 March 2026)
- AUM: ₹13,235.50Cr
- Exit load: 1% with in 1 year
- Expense ratio: 0.87%
Performance snapshot
- 1Y Returns: 13.98%
- 3Y CAGR: 23.7%
- 5Y CAGR: 18.4%
Sundaram Mid Cap Fund is focused on middle-cap companies that are well-founded in terms of fundamentals and have a high visibility of earnings. It has a diversified equity portfolio but has a low exposure to risk in debt and money market instruments. The fund aims at steady growth by learning how to select stocks.
Note: All the information included above is available on publicly available sources like Groww and is correct as of 16/03/2026. Market dynamics such as NAV, returns and AUM can vary with no regularity. The investors should be encouraged to check the most recent information prior to making any investment decisions.
Conclusion
Small-cap and mid-cap mutual funds may provide good long-term growth prospects to those investors who are ready to assume greater volatility. They have SIP plans as low as ₹100, making them a cost-effective way for investors to invest in the expansion of new organizations. Nevertheless, the investors are advised to view these funds in a long-term view and make sure that it fits their risk appetite and financial objectives.
Written by Boyapati Sai Jasmitha
Disclaimer: The information provided in this article is for informational purposes only and should not be taken as concrete investment advice. All the investments and mutual funds are always subject to market risks, and past performance does not equate to future gains. Investors should read all scheme-related documents carefully and consult a qualified financial advisor before making any financial decisions.
