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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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