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Top Small-Cap Mutual Funds 2026 for High-Growth Investors

ByK Roy

Nov 18, 2025 #Aditya BSL Small Cap Dir Gr, #Aditya BSL Small Cap Gr, #Axis Small Cap Fund Dir Gr, #Axis Small Cap Fund Reg Gr, #Bajaj Finserv Small Cap Dir Gr, #Bajaj Finserv Small Cap Reg Gr, #Bandhan Small Cap Dir Gr, #Bandhan Small Cap Reg Gr, #Bank of India Small Cap Dir Gr, #Bank of India Small Cap Reg Gr, #Baroda BNP Paribas Small Cap Dir Gr, #Baroda BNP Paribas Small Cap Reg Gr, #Canara Robeco Small Cap Dir Gr, #Canara Robeco Small Cap Reg Gr, #DSP Small Cap Dir Gr, #DSP Small Cap Reg Gr, #Edelweiss Small Cap Dir Gr, #Edelweiss Small Cap Reg Gr, #Franklin India Small Cap Dir Gr, #Franklin India Small Cap Gr, #HDFC Small Cap Dir Gr, #HDFC Small Cap Gr, #HSBC Small Cap Fund Dir Gr, #HSBC Small Cap Fund Reg Gr, #ICICI Pru Smallcap Dir Gr, #ICICI Pru Smallcap Gr, #Invesco India Smallcap Dir Gr, #Invesco India Smallcap Reg Gr, #ITI Small Cap Dir Gr, #ITI Small Cap Reg Gr, #JM Small Cap Dir Gr, #JM Small Cap Reg Gr, #Kotak Small Cap Dir Gr, #Kotak Small Cap Reg Gr, #LIC MF Small Cap Fund Dir Gr, #LIC MF Small Cap Fund Reg Gr, #Mahindra Manulife Small Cap Dir Gr, #Mahindra Manulife Small Cap Reg Gr, #Mirae Asset Small Cap Dir Gr, #Mirae Asset Small Cap Reg Gr, #Motilal Oswal Small Cap Dir Gr, #Motilal Oswal Small Cap Reg Gr, #Nippon India Small Cap Dir Gr, #Nippon India Small Cap Gr, #PGIM India Small Cap Dir Gr, #PGIM India Small Cap Reg Gr, #Quant Small Cap Dir Gr, #Quant Small Cap Gr, #Quantum Small Cap Dir Gr, #Quantum Small Cap Reg Gr, #SBI Small Cap Fund Dir Gr, #SBI Small Cap Fund Reg Gr, #Sundaram LT Mic capTax Ad Sr VI Dir Gr, #Sundaram LT Mic capTax Ad Sr VI Reg Gr, #Sundaram Small Cap Dir Gr, #Sundaram Small Cap Gr, #Tata Small Cap Fund Dir Gr, #Tata Small Cap Fund Reg Gr, #The listed funds are counted as Top Small-Cap Mutual Funds 2026 for High-Growth Investors., #top small cap mutual fund 2023 top small cap mutual funds to invest in 2023 top small cap mutual funds 2021 top small cap mutual funds 2022, #Top Small-Cap Mutual Funds 2026, #Top Small-Cap Mutual Funds of 2026, #TrustMF Small Cap Dir Gr, #TrustMF Small Cap Reg Gr, #Union Small Cap Dir Gr, #Union Small Cap Reg Gr, #UTI Small Cap Dir Gr, #UTI Small Cap Reg Gr
Invest in Top Small-Cap Mutual Funds 2026Invest in Top Small-Cap Mutual Funds 2026

Top Small-Cap Mutual Funds 2026 for High-Growth Investors

The Small-Cap Surge: The Best Mutual Funds to Keep an Eye on in 2026 for Investors Looking for High Growth

The listed funds are counted as Top Small-Cap Mutual Funds 2026 for High-Growth Investors. Large profits often originate from the small-cap segment of the stock market. It gives investors access to fast-growing, early-stage companies with a lot of room to grow. But this potential comes with more danger and volatility. The Indian small-cap market is still a lucrative place to make money as we look ahead to 2026, but you need to be disciplined and think long-term.

Here is a detailed guide to understanding the small-cap market and a ranking of the best-performing funds based on strategy, consistency, and risk-adjusted returns.

Top Small-Cap Mutual Funds of 2026: Understanding the Small-Cap Opportunity

Small-cap mutual funds are required to invest at least 65% of their assets in the stocks of firms ranked 251st and up by market capitalization. These companies are often in a rapid growth phase, with new business concepts and the potential to become tomorrow’s large-cap leaders.

🎯 The High Risk/High Reward Equation

Small-cap funds are not for the fainthearted. Their inherent traits include:

Higher Volatility: Due to their lower liquidity and smaller operating size, these stocks are more vulnerable to market fluctuations. Small-cap funds may have a much larger average standard deviation than large-cap funds.

Liquidity Risk: During market downturns, selling small-cap equities might be difficult, limiting the fund’s ability to manage redemptions.

Long-term horizon is key. To effectively benefit from this category and allow fund managers to uncover and nurture exceptional growth stories, investors must have a minimum investment horizon of 7 to 8 years.

Fund Name Core Investment Philosophy/Strategy Highlight
Quant Small Cap Fund Known for its high-conviction, dynamic momentum-based strategy. Has delivered high returns, though it carries very high volatility.
Nippon India Small Cap Fund Focuses on identifying early-stage growth stocks and maintaining a consistent ‘buy-and-hold’ philosophy. The Nippon India Small Cap Fund is one of the largest and most consistent performers.
SBI Small Cap Fund Employs a balanced, quality-based approach, focusing on companies with strong fundamentals, growth prospects, and ethical management.
HDFC Small Cap Fund Known for its strong research-backed, bottom-up stock picking. Aims for companies that can deliver sustainable long-term earnings growth.
Bandhan Small Cap Fund Follows a GARP (Growth at a Reasonable Price) approach, focusing on quality, scalable businesses with excellent profitability and strong balance sheets.
Invesco India Smallcap Fund The fund prioritizes companies that are gaining market share, have significant scalability, and possess passionate management, while avoiding businesses that are overleveraged.
Tata Small Cap Fund The Tata Small Cap Fund stands out for its long-term ‘buy and hold’ strategy, which prioritizes quality businesses and manages risk to deliver consistent growth.

Top Small-Cap Mutual Funds of 2026

No Fund Name NSE Code BSE Code Purchase Mode is

Recommended

 Checklist Score / 100 Morningstar Rating AUM Cr Net Expense Ratio Current NAV Day change % Week change % Month Change % Returns
3M %		 Returns
1Yr %		 2Yr CAGR% 3Yr CAGR% 5Yr CAGR%
1 Nippon India Small Cap Gr regular 0 53 4 6.89692E+11 1.4 170.53 -0.33 0.94 0.65 2.84 1.14 16.27 22.65 31.22
2 Nippon India Small Cap Dir Gr direct 0 50 5 6.89692E+11 0.64 191.57 -0.34 0.95 0.71 3.04 1.91 17.17 23.63 32.33
3 HDFC Small Cap Gr regular 0 61 4 3.84121E+11 1.55 142 -0.73 -0.25 0.52 2.7 6.19 15.59 22.14 28.79
4 HDFC Small Cap Dir Gr direct 0 56 4 3.84121E+11 0.68 161.91 -0.73 -0.23 0.6 2.92 7.08 16.61 23.23 30
5 SBI Small Cap Fund Reg Gr regular 0 32 2 3.69451E+11 1.57 171.63 -0.49 0.34 -0.15 2.11 0.18 12.58 14.52 22.16
6 SBI Small Cap Fund Dir Gr direct 0 23 3 3.69451E+11 0.74 196.95 -0.49 0.36 -0.08 2.33 1.04 13.59 15.61 23.37
7 Quant Small Cap Dir Gr direct 0 43 5 3.05044E+11 0.71 283.86 -0.48 0.83 0.96 4.92 1.15 18.91 24.76 34.64
8 Quant Small Cap Gr regular 0 52 4 3.05044E+11 1.58 260.51 -0.48 0.81 0.89 4.69 0.23 17.81 23.49 32.9
9 Axis Small Cap Fund Reg Gr regular 0 50 3 2.70658E+11 1.59 107.71 -0.87 0.32 1.16 2.87 6.15 16.05 19.11 24.99
10 Axis Small Cap Fund Dir Gr direct 0 61 4 2.70658E+11 0.56 124.88 -0.88 0.34 1.26 3.14 7.27 17.3 20.43 26.6
11 Kotak Small Cap Dir Gr direct 0 21 3 1.8024E+11 0.53 300.42 -0.56 -0.64 -1.45 0.21 -2.7 14.5 17.17 26.07
12 Kotak Small Cap Reg Gr regular 0 22 2 1.8024E+11 1.64 255.08 -0.56 -0.67 -1.54 -0.08 -3.78 13.18 15.79 24.46
13 Bandhan Small Cap Dir Gr direct 0 54 5 1.73803E+11 0.41 52.23 -0.8 0.31 2.03 5.01 8.48 29.56 33.02 31.77
14 Bandhan Small Cap Reg Gr regular 0 50 4 1.73803E+11 1.65 47.67 -0.79 0.27 1.9 4.68 7.11 27.81 31.17 29.74
15 DSP Small Cap Reg Gr regular 0 25 2 1.68679E+11 1.69 198.02 -0.93 0.61 2.79 3.78 4.54 15.87 20.72 25.62
16 DSP Small Cap Dir Gr direct 0 18 3 1.68679E+11 0.77 218.24 -0.93 0.63 2.87 4.02 5.48 16.9 21.79 26.75
17 HSBC Small Cap Fund Dir Gr direct 0 33 3 1.65479E+11 0.64 89.71 -0.62 0.43 -0.14 3.11 -1.7 12.32 20.97 29.46
18 HSBC Small Cap Fund Reg Gr regular 0 30 3 1.65479E+11 1.67 80.46 -0.62 0.4 -0.24 2.84 -2.71 11.18 19.74 28.12
19 Franklin India Small Cap Gr regular 0 43 3 1.37895E+11 1.74 171.31 -0.63 0.74 1.7 3.09 0.12 13.54 21.84 27.21
20 Franklin India Small Cap Dir Gr direct 0 40 4 1.37895E+11 0.9 194.44 -0.63 0.76 1.77 3.3 0.95 14.49 22.87 28.28
21 Canara Robeco Small Cap Reg Gr regular 0 29 3 1.32855E+11 1.67 38.83 -0.69 0.39 0.13 2.1 0.44 13.42 16.46 26.38
22 Canara Robeco Small Cap Dir Gr direct 0 27 3 1.32855E+11 0.46 43.07 -0.69 0.42 0.23 2.4 1.65 14.81 17.96 28.24
23 Tata Small Cap Fund Reg Gr regular 0 26 3 1.17923E+11 1.67 38.24 -0.52 -0.91 -1.95 -2.75 -7.51 13.17 18.14 27.06
24 Tata Small Cap Fund Dir Gr direct 0 36 4 1.17923E+11 0.33 43.14 -0.51 -0.87 -1.82 -2.42 -6.26 14.75 19.89 29.15
25 Invesco India Smallcap Dir Gr direct 0 53 5 87204754000 0.4 47.36 -0.67 0.96 -0.25 2.65 8.81 22.25 27.08 31.71
26 Invesco India Smallcap Reg Gr regular 0 52 4 87204754000 1.73 42.56 -0.65 0.95 -0.35 2.32 7.37 20.57 25.33 29.76
27 ICICI Pru Smallcap Gr regular 0 47 2 86215314044 1.78 86.99 -0.75 0.32 -0.42 1.69 3.51 12.63 17.5 25.94
28 ICICI Pru Smallcap Dir Gr direct 0 44 3 86215314044 0.76 98 -0.75 0.35 -0.34 1.97 4.59 13.85 18.79 27.47
29 Motilal Oswal Small Cap Dir Gr direct 0 29 58298687000 0.61 14.85 -1 1.3 1.3 7.36 10.34
30 Motilal Oswal Small Cap Reg Gr regular 0 22 58298687000 1.82 14.46 -1.03 1.26 1.19 7.04 8.88
31 Edelweiss Small Cap Reg Gr regular 0 27 3 52967017000 1.81 44.27 -0.52 0.77 0.96 2.89 3.44 15.79 20.42 27.39
32 Edelweiss Small Cap Dir Gr direct 0 41 4 52967017000 0.43 49.17 -0.51 0.8 1.07 3.25 4.92 17.48 22.22 29.39
33 Aditya BSL Small Cap Gr regular 0 24 1 51271186000 1.9 87.43 -0.87 -0.11 1.9 4.83 3.04 13.69 18.77 22.18
34 Aditya BSL Small Cap Dir Gr direct 0 26 2 51271186000 0.9 99.63 -0.88 -0.09 1.99 5.1 4.04 14.85 19.99 23.45
35 UTI Small Cap Reg Gr regular 0 19 3 49176527000 1.86 26.09 -0.76 0.04 0.58 2.2 3.46 15.54 18.46
36 UTI Small Cap Dir Gr direct 0 32 3 49176527000 0.64 28.17 -0.77 0.04 0.68 2.52 4.7 17 20.05
37 Mahindra Manulife Small Cap Reg Gr regular 0 17 43075349000 1.84 19.78 -0.65 0.25 1.28 5.31 2.68 18.39
38 Mahindra Manulife Small Cap Dir Gr direct 0 28 43075349000 0.43 20.73 -0.67 0.24 1.37 5.69 4.16 20.19
39 Sundaram Small Cap Gr regular 0 25 2 34956271233 1.92 265.22 -0.92 0.4 1.23 6.47 7.46 15.19 21.49 26.28
40 Sundaram Small Cap Dir Gr direct 0 33 3 34956271233 0.84 294.67 -0.91 0.42 1.32 6.77 8.63 16.45 22.83 27.68
41 ITI Small Cap Reg Gr regular 0 42 3 28351779000 1.85 28.79 -0.66 0.73 0.66 2.56 5.22 20.85 26.26 23.95
42 ITI Small Cap Dir Gr direct 0 58 4 28351779000 0.22 32.13 -0.65 0.78 0.82 2.98 6.79 22.8 28.36 26.28
43 Mirae Asset Small Cap Reg Gr regular 0 27 27290886000 1.9 11.78 -0.67 0.51 2.26 5.25
44 Mirae Asset Small Cap Dir Gr direct 0 34 27290886000 0.32 11.94 -0.58 0.59 2.49 5.67
45 Bank of India Small Cap Reg Gr regular 0 11 3 20156624000 1.96 46.74 -0.76 0 1.06 4.48 -0.15 13.49 20.33 26.48
46 Bank of India Small Cap Dir Gr direct 0 20 4 20156624000 0.65 52.38 -0.76 0.04 1.18 4.83 1.32 15.17 22.14 28.47
47 Union Small Cap Reg Gr regular 0 33 2 17901766000 2.1 50.01 -0.87 0.16 0.58 5.19 5.5 11.2 18.26 25.32
48 Union Small Cap Dir Gr direct 0 31 3 17901766000 0.94 55.44 -0.84 0.2 0.69 5.51 6.72 12.52 19.64 26.62
49 PGIM India Small Cap Reg Gr regular 0 36 1 16339299000 2.07 16.48 0 0.18 -0.9 1.98 6.6 14.18 14.15
50 PGIM India Small Cap Dir Gr direct 0 44 2 16339299000 0.55 17.72 0.06 0.23 -0.73 2.37 8.19 15.92 15.92
51 Bajaj Finserv Small Cap Reg Gr regular 0 13 15123563980 2.06 9.77 -0.51 0.72 1.45 3.48
52 Bajaj Finserv Small Cap Dir Gr direct 0 21 15123563980 0.44 9.83 -0.41 0.82 1.65 3.9
53 Baroda BNP Paribas Small Cap Reg Gr regular 0 9 12696755000 2.15 13.18 0.23 1.62 2.17 3.23 1.47 13.25
54 Baroda BNP Paribas Small Cap Dir Gr direct 0 9 12696755000 0.89 13.58 0.3 1.65 2.26 3.58 2.69 14.9
55 TrustMF Small Cap Reg Gr regular 0 22 10770675452 2.17 11.06 -0.9 1.28 3.66 10.13 13.98
56 TrustMF Small Cap Dir Gr direct 0 29 10770675452 0.47 11.27 -0.79 1.35 3.97 10.48 15.81
57 JM Small Cap Dir Gr direct 0 27 7598675718 0.6 10.5 -1.22 0.38 1.74 8.38 4.86
58 JM Small Cap Reg Gr regular 0 18 7598675718 2.28 10.25 -1.25 0.39 1.69 7.91 3.11
59 LIC MF Small Cap Fund Reg Gr regular 0 17 3 6471123000 2.38 30.22 -0.85 0.73 -0.33 4.71 -2.92 15.78 17.65 26.18
60 LIC MF Small Cap Fund Dir Gr direct 0 18 3 6471123000 1.02 33.98 -0.88 0.77 -0.23 5.1 -1.53 17.18 18.96 27.51
61 Quantum Small Cap Reg Gr regular 0 23 1670543665 2.17 12.8 -0.31 1.03 2.32 3.83 7.41 12.41
62 Quantum Small Cap Dir Gr direct 0 23 1670543665 0.7 13.19 -0.38 1 2.33 4.28 9.04 14.16
63 Sundaram LT Mic capTax Ad Sr VI Dir Gr direct 0 – 371851022 1.18 28.52 -0.73 0.74 0.64 4.36 7.81 12.87 20.05 31
64 Sundaram LT Mic capTax Ad Sr VI Reg Gr regular 0 – 371851022 1.42 27.18 -0.73 0.74 0.59 4.3 7.54 12.59 19.74 30.69

 

By K Roy

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