The remaining funds in the category posted negative returns for the month. Quant Small Cap Fund fell 0.74%, while Bandhan Small Cap Fund declined 0.85% and ICICI Prudential Small Cap Fund lost 0.99%.
Among the larger set of funds that declined, Edelweiss Small Cap Fund recorded the steepest fall at 5.03%. UTI Small Cap Fund dropped 4.22%, while SBI Small Cap Fund fell 3.79%. Canara Robeco Small Cap Fund and Invesco India Small Cap Fund declined 3.89% and 3.30%, respectively.
MUST READ: Stock market sell-off: Nifty, Sensex log 8th straight weekly loss; key levels & top triggers now
September 2026 performance of small-cap funds
| Small-cap fund | September 2026 return | 1-year return |
|---|---|---|
| Samco Small Cap Fund | 6.20% | — |
| Bank of India Small Cap Fund | 1.12% | 29.25% |
| Tata Small Cap Fund | 0.77% | -0.28% |
| Groww Small Cap Fund | 0.20% | — |
| Quant Small Cap Fund | -0.74% | 13.46% |
| Bandhan Small Cap Fund | -0.85% | 10.49% |
| ICICI Pru Small Cap Fund | -0.99% | 4.10% |
| TRUST MF Small Cap Fund | -1.50% | 29.14% |
| LIC MF Small Cap Fund | -1.53% | 14.85% |
| Bajaj Finserv Small Cap Fund | -1.66% | 16.24% |
| JM Small Cap Fund | -1.73% | 15.17% |
| The Wealth Company Small Cap Fund | -1.77% | — |
| Sundaram Small Cap Fund | -1.86% | 12.62% |
| Baroda BNP Paribas Small Cap Fund | -1.87% | 7.87% |
| Helios Small Cap Fund | -1.88% | — |
| DSP Small Cap Fund | -1.99% | 17.30% |
| Kotak Small Cap Fund | -2.28% | 5.79% |
| ITI Small Cap Fund | -2.30% | 19.48% |
| Union Small Cap Fund | -2.36% | 20.55% |
| Nippon India Small Cap Fund | -2.37% | 7.90% |
| Motilal Oswal Small Cap Fund | -2.57% | 20.88% |
| Abakkus Small Cap Fund | -2.59% | — |
| ABSL Small Cap Fund | -2.61% | 17.15% |
| HSBC Small Cap Fund | -2.64% | 12.41% |
| Quantam Small Cap Fund | -2.73% | 7.56% |
| Axis Small Cap Fund | -2.79% | 8.99% |
| Mahindra Manulife Small Cap Fund | -2.79% | 15.56% |
| Mirae Asset Small Cap Fund | -2.84% | 9.54% |
| HDFC Small Cap Fund | -2.92% | -2.94% |
| Franklin India Small Cap Fund | -2.93% | 4.44% |
| PGIM India Small Cap Fund | -2.94% | 13.15% |
| Invesco India Small Cap Fund | -3.30% | 14.04% |
| SBI Small Cap Fund | -3.79% | 5.47% |
| Canara Robeco Small Cap Fund | -3.89% | 3.72% |
| UTI Small Cap Fund | -4.22% | 4.86% |
| Edelweiss Small Cap Fund | -5.03% | 7.13% |
Category: September 2026: -2.59% | 1-year: 9.92%
Small-cap index: September 2026: -3.12% | 1-year: 2.92%
Source: Value Research.
One-year returns remain positive for most funds
Despite the weak September performance, the broader one-year picture remained considerably stronger. The small-cap fund category delivered a 9.92% return over one year, according to the data.
Bank of India Small Cap Fund recorded the highest one-year return among the funds with available data at 29.25%, closely followed by TRUST MF Small Cap Fund at 29.14%. Motilal Oswal Small Cap Fund delivered 20.88%, while Union Small Cap Fund returned 20.55%.
ITI Small Cap Fund posted a 19.48% one-year return, followed by ABSL Small Cap Fund at 17.15% and DSP Small Cap Fund at 17.30%. Bajaj Finserv Small Cap Fund and Mahindra Manulife Small Cap Fund delivered 16.24% and 15.56%, respectively.
At the other end, HDFC Small Cap Fund was down 2.94% over one year, while Tata Small Cap Fund declined 0.28%. These were the only two schemes in the table with negative one-year returns.
MUST READ: Goldman Sachs pushes back on ‘short-AI’ India narrative, says report; 42 stocks in focus
Small-cap index also declines
The weakness was not limited to actively managed funds. The small-cap index declined 3.12% in September, compared with a 2.59% fall for the small-cap fund category.
However, the index’s one-year return stood at 2.92%, below the category’s 9.92% return over the same period.
| Key takeaway | September 2026 | 1-year performance |
|---|---|---|
| Small-cap fund category | -2.59% | 9.92% |
| Small-cap index | -3.12% | 2.92% |
The September numbers highlight the volatility within the small-cap segment, where individual fund performance varied sharply even as the broader category came under pressure. The data also shows that a weak monthly performance did not necessarily erase gains accumulated over the preceding year.
Disclaimer: Business Today provides market and personal news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
