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These 5 small-cap funds turned ₹1L into ₹5L+ in just 5 years

Let's look at the top-performing small-cap funds in the last five years

These 5 small-cap funds turned Rs 1 lakh into over Rs 5 lakh in just 5 yearsAditya Roy/AI-Generated Image

हिंदी में भी पढ़ें read-in-hindi

Small-caps aren't for the faint-hearted. They plunge harder in bad times, and run faster in good ones. But for investors who stayed the course, the payoff has been more than worth the ride.

Had you consistently invested in the right small-cap fund, your money could have grown by as much as 50 per cent over five years.

So, without further ado, let's look at the five top-performing small-cap mutual funds based on five-year returns. Here's how they stack up, from the fifth best to the best:

#5: HDFC Small Cap Fund (Direct)

  • Five-year return: 38.92 per cent
  • Assets under management : Rs 30,880 crore
  • Expense ratio : 0.78 per cent

Top stock holdings

Stock % of assets
Firstsource 6%
Aster DM Healthcare 3.99%
Bank of India 3.79%
eClerx Services 3.07%
Eris Lifesciences 2.77%

#4: Franklin India Smaller Companies Fund (Direct)

  • Five-year return: 39.07 per cent
  • Assets under management : Rs 12,530 crore
  • Expense ratio : 0.97 per cent

Top stock holdings

Stock % of assets
Aster DM Healthcare 3.23%
Brigade Enterprises 3.18%
Equitas SF Bank 2.57%
Karur Vysya Bank 2.44%
Deepak Nitrite 2.14%

#3: Bandhan Small Cap Fund (Direct)

  • Five-year return: 40.23 per cent
  • Assets under management : Rs 10,244 crore
  • Expense ratio : 0.39 per cent

Top stock holdings

Stock % of assets
Sobha 3.13%
LT Foods 2.38%
South Indian Bank 2.33%
Cholamandalam Financial 2.19%
PCBL 1.89%

#2: Nippon India Small Cap Fund (Direct)

  • Five-year return: 42.24 per cent
  • Assets under management : Rs 58,029 crore
  • Expense ratio : 0.68 per cent

Top stock holdings

Stock % of assets
HDFC Bank 2.21%
MCX 1.95%
Dixon Technologies 1.33%
Kirloskar Brothers 1.32%
Tube Investments 1.25%

#1: Quant Small Cap Fund

  • Five-year return: 50.44 per cent
  • Assets under management : Rs 26,222 crore
  • Expense ratio : 0.68 per cent

Top stock holdings

Stock % of assets
Reliance Industries 10.48%
Jio Financial 5.23%
Aegis Logistics 3.95%
Aditya Birla Fashion 3.24%
Poly Medicure 3.09%

Top 5 small-cap funds

Fund name 5Y return Value Research Rating
Quant Small Cap Fund 50.44% ★★★★★
Nippon India Small Cap Fund 42.24% ★★★★
Bandhan Small Cap Fund 40.23% ★★★★★
Franklin India Smaller Companies Fund 39.07% ★★★★
HDFC Small Cap Fund 38.92% ★★★
(Data as of May 27, 2025. Returns are for direct plans.)

High past returns ≠ guaranteed future performance. Want well-rounded, analyst-vetted small-cap funds? Head to Value Research Fund Advisor .

Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.

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