Smallcap mutual funds are equity funds that invest primarily in smallcap companies. According to SEBI’s categorisation, a small-cap mutual fund must invest at least 65 per cent of its total assets in smallcap stocks. Smallcap companies have a market capitalisation of less than Rs 5,000 crore.
Smallcap companies can potentially grow much faster than established companies. At the same time, they can be more vulnerable to economic slowdowns, competition, business-related challenges, liquidity issues and higher interest rates.
This article will discuss the top seven small-cap mutual funds that have delivered the highest returns over the past five years. We will also calculate how much a Rs 21,000 monthly SIP would have grown to over the same five-year period. Take a look:
Bandhan Small Cap Fund
The top fund on the list is the Bandhan Small Cap Fund. It is a Rs 28,466 crore fund and has delivered an annualised return of 22.06 per cent over the past five years. The fund’s NAV was Rs 51.58 as of August 06, 2026.
Total SIP investment: Rs 12,60,000
Maturity value: Rs 23,07,091
ITI Small Cap Fund
The second fund on the list is the ITI Small Cap Fund. It is a Rs 3,322 crore fund and has delivered an annualised return of 21.69 per cent over the past five years. The fund’s NAV was Rs 33.46 as of August 06, 2026.
Total SIP investment: Rs 12,60,000
Maturity value: Rs 22,82,205
Invesco India Smallcap Fund
Next comes Invesco India Smallcap Fund. With a market capitalisation of Rs 14,522 crore, the fund has given an annualised return of 21.23 per cent over the past five years. The fund’s NAV was Rs 48.23 as of August 06, 2026.
Total SIP investment: Rs 12,60,000
Maturity value: Rs 22,51,712
Bank of India Small Cap Fund
The fourth fund on the list is Bank of India Small Cap Fund. It is a Rs 2,572 crore fund and has delivered an annualised return of 20.23 per cent over the past five years. The fund’s NAV was Rs 56.5 as of August 06, 2026.
Total SIP investment: Rs 12,60,000
Maturity value: Rs 21,87,086
Union Small Cap Fund
The fifth fund on the list is Union Small Cap Fund. With a market capitalisation of Rs 2,268 crore, the fund has given an annualised return of 18.52 per cent over the past five years. The fund’s NAV was Rs 59.16 as of August 06, 2026.
Total SIP investment: Rs 12,60,000
Maturity value: Rs 20,81,655
DSP Small Cap Fund
The next fund on the list is DSP Small Cap Fund. It has a market cap of Rs 19,635 crore and has given an annualised return of 18.04 per cent over the past five years. The fund’s NAV was Rs 226.12 as of August 06, 2026.
Total SIP investment: Rs 12,60,000
Maturity value: Rs 20,53,168
Quant Small Cap Fund
The last fund on the list is Quant Small Cap Fund. With a market capitalisation of Rs 33,739 crore, the fund has given an annualised return of 18.01 per cent over the past five years. The fund’s NAV was Rs 286.92 as of August 06, 2026.
Total SIP investment: Rs 12,60,000
Maturity value: Rs 20,51,403
Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning.
