Small-cap funds bring a lucrative opportunity to investors ready to take on the risk. These funds invest in companies with high growth potential still in their early stages, delivering substantial returns in the long run.
In this blog, we’ll explore the top-performing small-cap mutual funds that delivered attractive returns in the last five years.
Best Small Cap Funds Delivering the Highest Returns in 5 Years
We have curated this list of top-performing small-cap mutual funds to help you make informed decisions while investing.
1.Quant Small Cap Fund
The Quant Small Cap Fund is known for its aggressive investment strategy and actively identifies high-growth potential stocks across various industries. It focuses on growing companies with strong fundamentals and promising future prospects.
With its dynamic approach to portfolio management, this small-cap fund returned almost 40% returns in the last five years. If you’re looking for aggressive growth and have a high risk tolerance, the Quant Small Cap Fund can be suitable.
- AUM: INR 25,183.50 crore
- NAV: INR 245.6554
- Expense ratio: 1.04%
- 1-Year return: 1.32%
- 3-Year return: 20.02%
- 5-Year return: 39.79%
2.Bank of India Small Cap Fund
The Bank of India Small Cap Fund has been designed for investors looking to capitalize on the rapidly expanding small-cap segment in India. The fund managers strategically diversify the portfolio, investing in companies across key sectors like industrials, healthcare, and technology. Some of the key sectors where the fund invests include industrials, basic materials, financial services, and consumer cyclical.
- AUM: INR 1,555.78 crore
- NAV: INR 45.7800
- Expense ratio: 0.45%
- 1-Year return: 11.23%
- 3-Year return: 18.65%
- 5-Year return: 30.47%
3.Nippon India Small Cap Fund
This is one of the most popular small-cap funds. The Nippon India Small Cap Fund has consistently outperformed other funds in this category, investing in high-potential businesses. The portfolio looks well-diversified, prioritizing sectors like financial services and industrials. If you’re looking for a small cap fund to grow long-term wealth, this can be suitable.
- AUM: INR 57,009.70 crore
- NAV: INR 167.1296
- Expense ratio: 0.70%
- 1-Year return: 8.00%
- 3-Year return: 21.97%
- 5-Year return: 30.36%
4.Tata Small Cap Mutual Fund
The Tata Small Cap Fund identifies undervalued small-cap companies with strong financials and long-term growth potential. With this fund, you benefit from a disciplined approach to investing while enjoying exposure to promising sectors like industrials, basic materials, consumer cyclical, and healthcare. This is one of the popular Tata mutual funds for long-term wealth creation.
- AUM: INR 8,883.39 crore
- NAV: INR 39.8051
- Expense ratio: 0.34%
- 1-Year return: 13.41%
- 3-Year return: 20.96%
- 5-Year return: 28.45%
5.Canara Robeco Small Cap Fund
The Canara Robeco Small Cap Fund has a research-oriented investment strategy. Experienced fund managers strategically identify growing companies with strong earning potential. It maintains a diversified portfolio, with significant allocations in sectors like industrials, financial services, consumer cyclical, and basic materials.
- AUM: INR 11,527.90 crore
- NAV: INR 37.9500
- Expense ratio: 0.51%
- 1-Year return: 6.11%
- 3-Year return: 15.48%
- 5-Year return: 28.27%
Conclusion
While small cap companies tend to be volatile, they have historically outperformed larger counterparts over extended periods. These funds offer significant growth potential, which makes them an option for investors expecting attractive returns in the long term. Assess your investment goals and expectations and create an SIP in one of these small cap funds.
