Synopsis: In the past six months, mutual funds with exposure to mid and small-cap stocks have been strong performers. Sectoral funds focused on infrastructure have also performed well because of disciplined management and alignment within a market cycle.
In India’s mutual fund performance from June and November 2025, the market saw several spectacular returns driven by sectoral rallies and recovery and we present the five funds with the highest short-term returns and managed consistently.
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Market Overview: What Drove the Gains?
- Mid- and Small-Cap Rally: There was a substantial buying momentum in the mid-cap and small-cap stocks, resulting in strong returns in these categories.
- Sectoral Recovery: Strong returns in IT, overall banking, energy, and infrastructure sector resulted in good returns in thematic and multi-cap funds.
- FII & Domestic SIP Flows: Foreign institutional investors were gradually coming back, and domestic SIP flows remained strong averaging around ₹17,000+ crore per month.
- Benchmark Returns: The NSE Nifty 50 returned nearly 12%, and the Sensex returned around 11.4% over the 6 month time period.
- Category Returns: Small- and mid-cap fund returns averaged roughly 17-22% returns compared to large-cap fund returns averaging roughly 11-13%.
Criteria for Selection
- The funds were selected based on the absolute 6-month returns (June-November 2025).
- Only open-ended equity mutual funds were included.
- The funds must have higher returns than the category average and their benchmarks.
- Fund ages, Consistency, and size were taken into consideration for credibility and sustainability.
Top 5 Mutual Funds That Delivered Maximum Returns (Last 6 Months)
1. Trustmf Small Cap Fund
- 6-Month Return: 19.3% (as of November 13, 2025)
- Fund Size (AUM): ₹1,756 crore
- Fund Manager: Shreyash Devalkar
- Key Holdings: Tanla Platforms, Amber Enterprises, Tejas Networks, Jindal Stainless
- Performance Insight: The fund capitalized on dynamic allocation in high-growth small-cap stocks focused on technology and manufacturing. Strong earnings and sector rotation were the drivers of performance.
- Risk & Outlook: High volatility typical of small cap funds; suitable for an investor who can accept risk for potential capital appreciation over the long term.
2. Union Small Cap Fund
- 6-Month Return: 15.18%
- Fund Size (AUM): ₹5,823 crore
- Fund Manager: Sudhir Selukar
- Key Holdings: Granules India, Bharat Rasayan, Mindtree, Aurobindo Pharma
- Performance Insight: Focused investment of the fund in the pharma, IT, and niche manufacturing sectors drove a good level of returns for the investors, given the recovery within the respective spheres.
- Risk & Outlook: Standard high level of risk is prevalent in the sector allocated portfolio; returns are dependent on cyclical sector performance.
3. Mirae Asset Small Cap Fund
- 6-Month Return: 14.99%
- Fund Size (AUM): ₹9,424 crore
- Fund Manager: Vardhan Vachhar
- Key Holdings: Dixon Technologies, Hindware, PI Industries, Coromandel International
- Performance Insight: Returns stemmed from an established investment framework which was well-diversified across consumer durable stocks, industrials, and pharma.
- Risk & Outlook: A portfolio invested in well established small cap stocks, exposure to moderate to high risk and volatile returns; long term outlook still hinged on the growth of emerging sectors.
Also read: Top 10 Best-Performing Multi-Cap Mutual Funds in India Offering Up to 32% Returns
4. HDFC Small Cap Fund
- 6-Month Return: 14.16%
- Fund Size (AUM): ₹8,912 crore
- Fund Manager: Anup Purohit
- Key Holdings: Amber Enterprises, Aarti Industries, Avanti Feeds, Dixon Technologies
- Performance Insight: Despite volatility in the market, strong bottom-up stock selection with an emphasis on companies displaying quality and a robust business model yielded strong performance.
- Risk & Outlook: This small-cap fund has a high level of volatility in the near term, making it most suitable for investors with moderate to long-term time horizons.
5. PGIM India Small Cap Fund
- 6-Month Return: 13.55%
- Fund Size (AUM): ₹3,789 crore
- Fund Manager: Aniruddha Naha
- Key Holdings: Jindal Stainless, Laxmi Organic, Navin Fluorine, Aarti Industries
- Performance Insight: Portfolio of excellent selections within chemicals and specialty manufacturing sectors combined with excellent risk-adjusted tactical allocation helped produce some of the highest returns in the small-cap category.
- Risk & Outlook: Small-cap volatility exists, and therefore this fund is best suited for long-term growth for investors who accept some volatility in pursuit of capital growth.
Conclusion
Strong performance of funds over the past six months shows that the dynamic equity investment market in India can present some opportunities for investors. Some risks should be on your radar. Investors should enjoy the strong performance but balance the excitement with disciplined, goal-aligned investing, all while having risk controls for long-term success.
Written by Rachna Rajput