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Best Small Cap Equity Funds in 2025

What are Equity: Small Cap funds?


Funds Included All Fund Returns
(3Y annualised)
Top 5 fund Returns
(3Y annualised)
32 19.54% 24.69%

This fund category is an example of Equity Scheme funds.

These funds mainly invest in equity i.e. shares and equity-related instruments. They are suitable for investors seeking long-term capital appreciation and willing to tolerate short-term market volatility. Equity funds may focus on specific sectors, investment styles, or market capitalizations. Investors with a high risk appetite and long investment horizon may consider investing in equity funds.

Trailing returns for Equity: Small Cap funds

These are average returns over the indicated period.

Monthly trailing returns:
Nov-2025Oct-2025Sep-2025Aug-2025Jul-2025Jun-2025
-2.02%3.73%0.77%-2.92%-1.26%4.28%

Quarterly trailing returns:
2025Q42025Q32025Q22025Q12024Q42024Q3
1.64%-3.37%15.09%-13.64%-3.17%8.77%

Yearly trailing returns:
202520242023202220212020
-2.52%27.04%43.43%2.61%64.80%33.08%

Rolling returns for Equity: Small Cap funds

SIP
10% Step-up SIP
Lump sum
SWP
10% Step-up SWP
Metric Any 1Y SIPAny 2Y SIPAny 3Y SIPAny 5Y SIPAny 7Y SIPAny 10Y SIP
Minimum-29.76%0.44%-2.07%5.24%20.72%19.1%
Median15.46%9.25%21.57%21.57%22.98%19.82%
Maximum78.63%18.84%42.3%33.08%24.19%20.38%
Risk24.01%4.3%10.1%6.77%0.93%0.38%
Sharpe Ratio35.23%52.23%144.17%215.2%1727.49%3394.92%
Data as of 14-Dec-2025
Metric Any 1Y SIPAny 2Y 目↑ SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIPAny 7Y 目↑ SIPAny 10Y 目↑ SIP
Minimum-29.76%3.62%12.41%17.22%21.86%19.4%
Median15.46%7.21%14.73%18.8%22.85%20.06%
Maximum78.63%10.48%16.37%20.01%23.56%20.5%
Risk24.01%1.78%1.23%0.91%0.53%0.34%
Sharpe Ratio35.23%11.84%630.21%1303.31%2987.08%3858.87%
Data as of 14-Dec-2025
Metric Any 1YAny 2YAny 3YAny 5YAny 7YAny 10Y
Minimum-19.31%8.96%6.16%13.24%19.97%17.62%
Median13.54%16.66%22.78%23.75%21.22%17.9%
Maximum76.12%25.33%39.61%33.55%22.18%18.3%
Risk22.57%3.82%7.91%4.99%0.49%0.2%
Sharpe Ratio28.97%253.32%199.56%335.48%2885.94%5380.66%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y SWPAny 3Y SWPAny 5Y SWPAny 7Y SWPAny 10Y SWP
Minimum-23.44%16.58%4.35%14.23%17.26%14.07%
Median13.22%24.19%24.68%25.95%18.71%14.78%
Maximum87.99%36.59%56.69%51.77%21.21%15.86%
Risk27.55%4.89%11.31%9.47%1.09%0.52%
Sharpe Ratio22.57%351.86%156.42%200.1%1076.89%1483.94%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y 目↑ SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWPAny 7Y 目↑ SWPAny 10Y 目↑ SWP
Minimum-23.44%19.37%25.49%35.02%19.74%14.76%
Median13.22%23.27%26.31%35.83%20.4%15.01%
Maximum87.99%27.01%27.73%37.53%21.64%15.82%
Risk27.55%2.29%0.59%0.72%0.6%0.36%
Sharpe Ratio22.57%710.61%3249.81%4007.32%2220.24%2215.21%
Data as of 14-Dec-2025

Fundwise SIP, Lumpsum and SWP returns


Rolling SIP returns (less than 1 year)
Fund Any 1M SIPAny 3M SIPAny 6M SIP
HSBC Small Cap Fund-6.38%0.32%-7.36%
PGIM India Small Cap Fund-27.82%-10.51%0.91%
JM Small Cap Fund21.11%5.85%10.18%
Mirae Asset Small Cap Fund39.47%24.84%26.65%
Bajaj Finserv Small Cap Fund7.47%6.9%0%
Canara Robeco Small Cap Fund-26.74%-7.89%-3.76%
Aditya Birla Sun Life Small Cap Fund-25.15%-1.44%0.49%
UTI Small Cap Fund-25.62%-6.11%-1.94%
Quant Small Cap Fund-24.59%-4.63%-0.76%
Helios Small Cap Fund0%0%0%
Invesco India Smallcap Fund-16.63%2.11%3.88%
Franklin India Small Cap Fund-29.81%-8.85%-7.55%
Quantum Small Cap Fund18.42%11.54%16.7%
Bandhan Small Cap Fund-24.05%-1.72%1.31%
Edelweiss Small Cap Fund-19.34%-6.31%-1.33%
Axis Small Cap Fund-21.88%-5.82%-1.12%
LIC MF Small Cap Fund-18.7%-4.93%2.26%
Baroda BNP Paribas Small Cap Fund30.12%13.27%15.7%
Trustmf Small Cap Fund29.29%19.95%31.39%
Kotak Small Cap Fund-33.43%-19.25%-11.63%
SBI Small Cap Fund-26.68%-13.44%-5.45%
Tata Small Cap Fund-46.99%-34.15%-22.02%
Nippon India Small Cap Fund-23.87%-8.51%-3.33%
Sundaram Small Cap Fund-19.47%1.45%5.01%
DSP Small Cap Fund-0.87%-1.56%-0.74%
HDFC Small Cap Fund-26.76%-10.1%-0.27%
Bank India Small Cap Fund-34.14%-10.06%-4.7%
ITI Small Cap Fund-25.7%-6.07%-1.45%
Union Small Cap Fund-23.04%-5.78%5.1%
ICICI Prudential Smallcap Fund-19.66%-11.83%-4.57%
Mahindra Manulife Small Cap Fund19.83%11.57%13.3%
Motilal Oswal Small Cap Fund37.28%35.07%24.49%
Data as of 14-Dec-2025

Note: Returns for less than one year are annualised. However, given the nature of the calculation, XIRR for such periods are not meaningful.

Rolling SIP returns (1 year or more):

Fund Any 1Y SIPAny 3Y SIPAny 5Y SIP
HSBC Small Cap Fund26.3%10.7%0%
PGIM India Small Cap Fund10.46%14.9%0%
JM Small Cap Fund7.32%0%0%
Mirae Asset Small Cap Fund0%0%0%
Bajaj Finserv Small Cap Fund0%0%0%
Canara Robeco Small Cap Fund26.98%28.45%24.84%
Aditya Birla Sun Life Small Cap Fund19.08%13.65%15.48%
UTI Small Cap Fund9.24%20.26%0%
Quant Small Cap Fund6.27%16.5%26.75%
Helios Small Cap Fund0%0%0%
Invesco India Smallcap Fund11.08%23.39%24.4%
Franklin India Small Cap Fund16.0%22.98%19.69%
Quantum Small Cap Fund11.13%0%0%
Bandhan Small Cap Fund18.2%30.73%26.84%
Edelweiss Small Cap Fund25.93%30.55%26.91%
Axis Small Cap Fund6.52%15.3%18.49%
LIC MF Small Cap Fund2.85%0%0%
Baroda BNP Paribas Small Cap Fund2.81%0%0%
Trustmf Small Cap Fund20.9%0%0%
Kotak Small Cap Fund13.96%19.87%20.4%
SBI Small Cap Fund23.77%23.9%21.14%
Tata Small Cap Fund-4.43%10.57%18.08%
Nippon India Small Cap Fund26.76%29.44%26.39%
Sundaram Small Cap Fund14.57%20.11%19.29%
DSP Small Cap Fund22.98%25.48%20.8%
HDFC Small Cap Fund17.61%25.26%19.98%
Bank India Small Cap Fund29.53%34.74%19.18%
ITI Small Cap Fund23.49%23.57%22.41%
Union Small Cap Fund11.16%17.6%21.36%
ICICI Prudential Smallcap Fund16.71%16.53%17.4%
Mahindra Manulife Small Cap Fund21.41%0%0%
Motilal Oswal Small Cap Fund9.69%0%0%
Data as of 14-Dec-2025
SIP Calculator


Rolling Lumpsum returns
Fund Any 1YAny 3YAny 5Y
HSBC Small Cap Fund33.88%18.4%0%
PGIM India Small Cap Fund6.24%14.66%0%
JM Small Cap Fund-2.56%0%0%
Mirae Asset Small Cap Fund0%0%0%
Bajaj Finserv Small Cap Fund0%0%0%
Canara Robeco Small Cap Fund21.43%30.67%30.89%
Aditya Birla Sun Life Small Cap Fund17.63%18.08%20.82%
UTI Small Cap Fund17.34%19.82%0%
Quant Small Cap Fund-1.64%24.14%31.95%
Helios Small Cap Fund0%0%0%
Invesco India Smallcap Fund5.64%25.35%29.08%
Franklin India Small Cap Fund15.44%21.94%16.9%
Quantum Small Cap Fund7.48%0%0%
Bandhan Small Cap Fund26.41%31.59%30.44%
Edelweiss Small Cap Fund28.0%29.01%30.86%
Axis Small Cap Fund1.23%18.62%24.34%
LIC MF Small Cap Fund7.53%0%0%
Baroda BNP Paribas Small Cap Fund-0.82%0%0%
Trustmf Small Cap Fund9.61%0%0%
Kotak Small Cap Fund12.49%22.07%22.67%
SBI Small Cap Fund19.3%20.98%22.29%
Tata Small Cap Fund-6.79%17.05%26.6%
Nippon India Small Cap Fund18.03%24.9%24.51%
Sundaram Small Cap Fund6.05%20.79%21.87%
DSP Small Cap Fund22.08%22.64%18.97%
HDFC Small Cap Fund12.46%19.66%14.5%
Bank India Small Cap Fund27.24%40.04%26.69%
ITI Small Cap Fund16.54%27.0%24.79%
Union Small Cap Fund8.04%18.13%18.17%
ICICI Prudential Smallcap Fund13.47%15.62%14.9%
Mahindra Manulife Small Cap Fund35.83%0%0%
Motilal Oswal Small Cap Fund15.04%0%0%
Data as of 14-Dec-2025

Rolling SWP returns
Fund Any 1Y SWPAny 3Y SWPAny 5Y SWP
HSBC Small Cap Fund35.53%28.03%0%
PGIM India Small Cap Fund1.87%14.25%0%
JM Small Cap Fund-10.71%0%0%
Mirae Asset Small Cap Fund0%0%0%
Bajaj Finserv Small Cap Fund0%0%0%
Canara Robeco Small Cap Fund16.71%24.6%40.08%
Aditya Birla Sun Life Small Cap Fund13.99%24.22%28.62%
UTI Small Cap Fund15.48%22.16%0%
Quant Small Cap Fund-3.55%31.38%20.16%
Helios Small Cap Fund0%0%0%
Invesco India Smallcap Fund3.1%30.98%38.47%
Franklin India Small Cap Fund16.55%19.32%15.58%
Quantum Small Cap Fund15.31%0%0%
Bandhan Small Cap Fund31.61%37.05%35.1%
Edelweiss Small Cap Fund17.92%26.93%38.6%
Axis Small Cap Fund-5.63%23.64%33.82%
LIC MF Small Cap Fund35.78%0%0%
Baroda BNP Paribas Small Cap Fund8.41%0%0%
Trustmf Small Cap Fund-1.62%0%0%
Kotak Small Cap Fund7.48%22.74%20.29%
SBI Small Cap Fund22.49%20.64%21.08%
Tata Small Cap Fund-15.78%25.62%41.17%
Nippon India Small Cap Fund23.7%24.6%25.57%
Sundaram Small Cap Fund4.22%24.81%15.14%
DSP Small Cap Fund14.9%19.93%17.85%
HDFC Small Cap Fund10.72%16.06%13.58%
Bank India Small Cap Fund17.81%44.73%38.75%
ITI Small Cap Fund20.51%34.0%32.08%
Union Small Cap Fund7.68%13.78%7.74%
ICICI Prudential Smallcap Fund12.79%13.56%9.3%
Mahindra Manulife Small Cap Fund43.82%0%0%
Motilal Oswal Small Cap Fund22.28%0%0%
Data as of 14-Dec-2025

SIP and SWP returns with step-up


Rolling SIP returns with 10% step-up
Fund Any 1Y SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIP
HSBC Small Cap Fund26.3%10.15%0%
PGIM India Small Cap Fund10.46%14.14%0%
JM Small Cap Fund7.32%0%0%
Mirae Asset Small Cap Fund0%0%0%
Bajaj Finserv Small Cap Fund0%0%0%
Canara Robeco Small Cap Fund26.98%12.19%16.93%
Aditya Birla Sun Life Small Cap Fund19.08%13.31%15.26%
UTI Small Cap Fund9.24%15.17%0%
Quant Small Cap Fund6.27%14.35%21.26%
Helios Small Cap Fund0%0%0%
Invesco India Smallcap Fund11.08%21.53%23.43%
Franklin India Small Cap Fund16.0%12.29%18.13%
Quantum Small Cap Fund11.13%0%0%
Bandhan Small Cap Fund18.2%25.96%26.0%
Edelweiss Small Cap Fund25.93%15.42%19.38%
Axis Small Cap Fund6.52%14.96%18.15%
LIC MF Small Cap Fund2.85%0%0%
Baroda BNP Paribas Small Cap Fund2.81%0%0%
Trustmf Small Cap Fund20.9%0%0%
Kotak Small Cap Fund13.96%10.38%14.43%
SBI Small Cap Fund23.77%10.33%14.51%
Tata Small Cap Fund-4.43%9.72%16.94%
Nippon India Small Cap Fund26.76%14.73%20.75%
Sundaram Small Cap Fund14.57%16.35%19.11%
DSP Small Cap Fund22.98%15.72%18.67%
HDFC Small Cap Fund17.61%15.4%20.02%
Bank India Small Cap Fund29.53%14.61%18.75%
ITI Small Cap Fund23.49%20.12%21.18%
Union Small Cap Fund11.16%14.91%17.53%
ICICI Prudential Smallcap Fund16.71%12.29%16.74%
Mahindra Manulife Small Cap Fund21.41%0%0%
Motilal Oswal Small Cap Fund9.69%0%0%
Data as of 14-Dec-2025

Rolling SWP returns with 10% step-up
Fund Any 1Y SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWP
HSBC Small Cap Fund35.53%27.83%0%
PGIM India Small Cap Fund1.87%14.52%0%
JM Small Cap Fund-10.71%0%0%
Mirae Asset Small Cap Fund0%0%0%
Bajaj Finserv Small Cap Fund0%0%0%
Canara Robeco Small Cap Fund16.71%21.18%39.21%
Aditya Birla Sun Life Small Cap Fund13.99%24.04%27.67%
UTI Small Cap Fund15.48%23.06%0%
Quant Small Cap Fund-3.55%31.8%49.46%
Helios Small Cap Fund0%0%0%
Invesco India Smallcap Fund3.1%31.04%37.33%
Franklin India Small Cap Fund16.55%30.53%35.9%
Quantum Small Cap Fund15.31%0%0%
Bandhan Small Cap Fund31.61%38.3%34.24%
Edelweiss Small Cap Fund17.92%26.82%37.54%
Axis Small Cap Fund-5.63%23.65%32.81%
LIC MF Small Cap Fund35.78%0%0%
Baroda BNP Paribas Small Cap Fund8.41%0%0%
Trustmf Small Cap Fund-1.62%0%0%
Kotak Small Cap Fund7.48%22.87%35.16%
SBI Small Cap Fund22.49%18.51%29.91%
Tata Small Cap Fund-15.78%25.49%39.73%
Nippon India Small Cap Fund23.7%29.86%42.86%
Sundaram Small Cap Fund4.22%26.61%33.98%
DSP Small Cap Fund14.9%26.46%32.25%
HDFC Small Cap Fund10.72%28.24%38.26%
Bank India Small Cap Fund17.81%26.66%37.44%
ITI Small Cap Fund20.51%34.48%26.27%
Union Small Cap Fund7.68%23.47%34.21%
ICICI Prudential Smallcap Fund12.79%23.33%36.57%
Mahindra Manulife Small Cap Fund43.82%0%0%
Motilal Oswal Small Cap Fund22.28%0%0%
Data as of 14-Dec-2025

Note:N.A. in returns indicate that the fund does not have sufficient history.

Tables have been updated on 14-Dec-2025

How are Equity: Small Cap funds taxed on selling?

Equity Funds
Tax for FY2025-26
STCG Rate LTCG Eligibility LTCG Rate
Bought Anytime 20% After 1Y 12.5% (above 1.25L)
w 31Jan18 exemption

Note:

  • Dividends from mutual funds (called IDCW or Income Distribution cum Capital Withdrawal funds), are added to the income of the investor and taxed at their highest applicable (slab) rate.
  • Cess and surcharge (if applicable) is to be applied to taxes from mutual funds from selling and dividends.
  • Switches, SWP and selling any lump sum amount are taxable as per the table above.

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Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

Note: NAVs and returns updated on 14-Dec-2025.