Top 5 Best-Performing Small Cap Mutual Funds in India for High Returns (2024)

Small Cap Mutual Funds in India: High Returns with Risks

In India, mutual funds are a primary investment choice for investors. Among them, Small Cap Mutual Funds attract attention due to their investment in fast-growing small companies, offering high returns. However, along with high returns, they also carry significant risks. Therefore, they are an ideal option for long-term investors.

Top-Performing Small Cap Mutual Funds in the Last 5 Years
According to AMFI (Association of Mutual Funds in India) data, some Small Cap Mutual Funds have provided annual returns between 27.42% and 40% over the last five years, outperforming the Nifty Smallcap 250 Total Return Index (TRI), which delivered 24.16% returns in the same period.

Here are the top 5 best-performing Small Cap Mutual Funds in the past 5 years:

1. Quant Small Cap Fund
Annual Return (CAGR%): 40%
Growth of ₹1 Lakh in 5 Years: ₹5.38 Lakh
Invests in small and mid-sized companies, offering high growth potential but with significant risks.
Rated as the best-performing Small Cap Fund in the past 5 years.
High-risk investors can consider this fund, while long-term investors may benefit the most.
2. Nippon India Small Cap Fund
Annual Return (CAGR%): 29.52%
Growth of ₹1 Lakh in 5 Years: ₹3.64 Lakh
Focuses on the growth of small companies, making it ideal for long-term investors.
A moderate-risk Small Cap Fund, offering both stability and decent returns.
Investors seeking higher returns may opt for Quant Small Cap Fund instead.
3. Bank of India Small Cap Fund
Annual Return (CAGR%): 28.77%
Growth of ₹1 Lakh in 5 Years: ₹3.54 Lakh
Invests in emerging businesses, offering high growth potential but with risks.
Despite strong performance, it carries substantial risks.
Recommended only for long-term investments.
4. Tata Small Cap Fund
Annual Return (CAGR%): 28.31%
Growth of ₹1 Lakh in 5 Years: ₹3.48 Lakh
Managed by the Tata Group, known for its stable and strategic growth approach.
Offers high returns while ensuring steady investment growth.
Best suited for investors seeking consistent and sustainable growth.
5. Canara Robeco Small Cap Fund
Annual Return (CAGR%): 27.42%
Growth of ₹1 Lakh in 5 Years: ₹3.36 Lakh
Provides steady growth with lower risk.
A moderate-risk mutual fund ideal for long-term investors.
Conclusion: Which Small Cap Fund Should You Choose?
All five funds listed above have outperformed the Nifty Small Cap 250 TRI, which grew at 24.16% annually over the past five years.

For highest returns: Quant Small Cap Fund is the best choice.
For stable growth: Nippon India Small Cap Fund and Tata Small Cap Fund are ideal.
For moderate risk with decent returns: Canara Robeco Small Cap Fund and Bank of India Small Cap Fund are good options.
Investors should carefully assess their risk appetite and investment horizon before selecting a Small Cap Mutual Fund.