Synopsis- Small cap funds are high growth potential funds with high risk. The funds invest in companies with lower market capitalization where investors get an opportunity to get into early stage growth. Although they are associated with a larger volatility, they offer handsome returns that can go to those who are willing to take substantial risks as long term investors. The article talks about top performing small cap mutual funds which gave more than 25% XIRR returns in the last 5 years, along with details of most recent data on the fund NAV, size and minimum investment limit
1. Bandhan Small Cap Fund Direct Growth
- 5-Yr SIP XIRR: 31.15%
- Fund Size (AUM): ₹12,981 Cr
- Expense Ratio: 0.38%
- NAV: ₹51.54
- Minimum Lumpsum Investment: ₹1,000
- Minimum SIP Investment: ₹100
- The fund has the best 5 yr of SIP XIRR at 31.15% which means a consistent outperformance to the systematic investor. The low expense ratio and large fund size denote good management and the wide trust of investors.
2. Invesco India Small Cap Fund Direct Growth
- 5-Yr SIP XIRR: 28.51%
- Fund Size (AUM): ₹7,424 Cr
- Expense Ratio: 0.40%
- NAV: ₹46.86
- Minimum Lumpsum Investment: ₹1,000
- Minimum SIP Investment: ₹500
- The fund offers good returns with the 5-year SIP XIRR at 28.51 percent and moderate asset size to be flexible as well. Its competitive pricing scale and its performance to date makes it an attractive choice to disciplined long-term SIP investors.
3. Quant Small Cap Fund Direct Growth
- 5-Yr SIP XIRR: 27.96%
- Fund Size (AUM): ₹29,629 Cr
- Expense Ratio: 0.71%
- NAV: ₹279.17
- Minimum Lumpsum Investment: ₹5,000
- Minimum SIP Investment: ₹1,000
- With an outstanding 27.96% 5-year SIP XIRR, this fund is characterized by its active investment approach and the fast growth of AUM.
4. Nippon India Small Cap Fund Direct Growth
- 5-Yr SIP XIRR: 27.39%
- Fund Size (AUM): ₹66,601 Cr
- Expense Ratio: 0.64%
- NAV: ₹190.99
- Minimum Lumpsum Investment: NA
- Minimum SIP Investment: ₹100
- It is one of the largest funds with a solid SIP XIRR of 27.39%, indicating the amount of investor confidence on this fund. Its wide scope of investments manages the volatility and captures small cap opportunities.
5. Tata Small Cap Fund Direct Growth
- 5-Yr SIP XIRR: 26.28%
- Fund Size (AUM): ₹11,163 Cr
- Expense Ratio: 0.33%
- NAV: ₹45.83
- Minimum Lumpsum Investment: NA
- Minimum SIP Investment: ₹100
- 26.28% SIP XIRR is provided with lowest expense ratio compared to its peers, Tata Small Cap becomes appealing to cost sensitive SIP investors. The track record of the fund is good with its strong management and rising AUM.
Also read: Top Performing High-Risk Funds That Delivered High Returns in 2025 – Are They in Your Portfolio?
6. ITI Small Cap Fund Direct Growth
- 5-Yr SIP XIRR: 25.97%
- Fund Size (AUM): ₹2,640 Cr
- Expense Ratio: 0.48%
- NAV: ₹31.90
- Minimum Lumpsum Investment: ₹5,000
- Minimum SIP Investment: ₹500
- ITI Small Cap has SIP XIRR of 25.97 percent since it has a well-run portfolio with easy to digest fund size. It is also a good option in terms of a targeted investment and ease of entry through SIPs.
7. HDFC Small Cap Fund Direct Growth
- 5-Yr SIP XIRR: 25.67%
- Fund Size (AUM): ₹35,780 Cr
- Expense Ratio: 0.71%
- NAV: ₹161.40
- Minimum Lumpsum Investment: ₹100
- Minimum SIP Investment: ₹100
- This fund managed to provide 25.67% SIP XIRR in a five-year period. It is a popular investment choice of long-term investors of SIPs due to its accessibility and brand access.
8. Bank of India Small Cap Fund Direct Growth
- 5-Yr SIP XIRR: 25.20%
- Fund Size (AUM): ₹1,907 Cr
- Expense Ratio: 0.57%
- NAV: ₹52.68
- Minimum Lumpsum Investment: ₹5,000
- Minimum SIP Investment: ₹1,000.
9. Edelweiss Small Cap Fund Direct Growth
- 5-Yr SIP XIRR: 25.18%
- Fund Size (AUM): ₹4,929 Cr
- Expense Ratio: 0.43%
- NAV: ₹48.96
- Minimum Lumpsum Investment: ₹100
- Minimum SIP Investment: ₹100
- The fund has a five-year SIP XIRR of 25.18% and it is very good at identifying new growth stories early on. This is easy to start investing, with its minimum investment of 100 to attract new and small ticket SIP investors.
10. Franklin India Small Cap Fund Direct Growth
- 5-Yr SIP XIRR: 25.06%
- Fund Size (AUM): ₹13,995 Cr
- Expense Ratio: 0.90%
- NAV: ₹196.60
- Minimum Lumpsum Investment: ₹5,000
- Minimum SIP Investment: ₹500
- The fund is reliable to the systematic investor with a 25.06% SIP XIRR , Successful in outperforming the market.
Table Showing Top Small Cap Mutual Funds That Delivered Over 25% Returns in 5 Years
| Rank | Fund Name | 5-Yr SIP XIRR | AUM | ER | NAV | Min Lumpsum | Min SIP |
| 1 | Bandhan Small Cap Fund Direct Growth | 31.15% | ₹12,981 Cr | 0.38% | ₹51.54 | ₹1,000 | ₹100 |
| 2 | Invesco India Small Cap Fund Direct Growth | 28.51% | ₹7,424 Cr | 0.40% | ₹46.86 | ₹1,000 | ₹500 |
| 3 | Quant Small Cap Fund Direct Growth | 27.96% | ₹29,629 Cr | 0.71% | ₹279.17 | ₹5,000 | ₹1,000 |
| 4 | Nippon India Small Cap Fund Direct Growth | 27.39% | ₹66,601 Cr | 0.64% | ₹190.99 | NA | ₹100 |
| 5 | Tata Small Cap Fund Direct Growth | 26.28% | ₹11,163 Cr | 0.33% | ₹45.83 | NA | ₹100 |
| 6 | ITI Small Cap Fund Direct Growth | 25.97% | ₹2,640 Cr | 0.48% | ₹31.90 | ₹5,000 | ₹500 |
| 7 | HDFC Small Cap Fund Direct Growth | 25.67% | ₹35,780 Cr | 0.71% | ₹161.40 | ₹100 | ₹100 |
| 8 | Bank of India Small Cap Fund Direct Growth | 25.20% | ₹1,907 Cr | 0.57% | ₹52.68 | ₹5,000 | ₹1,000 |
| 9 | Edelweiss Small Cap Fund Direct Growth | 25.18% | ₹4,929 Cr | 0.43% | ₹48.96 | ₹100 | ₹100 |
| 10 | Franklin India Small Cap Fund Direct Growth | 25.06% | ₹13,995 Cr | 0.90% | ₹196.60 | ₹5,000 | ₹500 |
Final Thoughts
Small cap mutual funds have rewarded the long term investor in the last 5 years. They are however best suited in an all mix portfolio due to their volatile nature. Long-term investors with patience on market fluctuations can gain by investing in a leading small cap fund as part of their SIPs portfolio. Select a mutual fund based on your risk level and comfort level of the fund size and on the consistency of returns.
Written by Prajwal Hegde
