Hello everyone, I’m looking to increase my returns and I’m considering small-cap mutual funds for this. For 2025, can anyone tell me the top-performing small-cap mutual funds?
That’s a good question. Many people want to know which small-cap funds are doing well.
Top Small-Cap Funds with Good Returns
These funds buy shares of small companies. They can grow fast but also move up and down a lot. Here are five funds that have done well over the last few years.
| Fund Name | 3-Year Return | 5-Year Return | Cost (Expense %) | AUM (₹ Cr) |
|---|---|---|---|---|
| Quant Small Cap Fund | 27 % | 22 % | 0.64 | 15,800 |
| Nippon India Small Cap Fund | 26 % | 21 % | 0.74 | 43,600 |
| SBI Small Cap Fund | 26 % | 21 % | 0.81 | 20,100 |
| HDFC Small Cap Fund | 24 % | 20 % | 0.78 | 18,900 |
| Axis Small Cap Fund | 24 % | 19 % | 0.82 | 16,200 |
Points You Should Remember
- These are high-risk funds.
- Stay invested for at least 7 years.
- Start with a small SIP and increase slowly.
What Are Small-Cap Funds
These funds put at least 65 % of their money in small companies. Small companies are those ranked below the top 250 on the stock exchange. Because they are small, even a little good news can push their prices up fast. The same way, bad news can pull them down fast.
How to Invest Step by Step
- First you have to open a free mutual-fund account with your bank or any online app.
- Now finish the one-time KYC by uploading PAN and Aadhaar.
- Pick one fund as per your choice .
- Set a monthly SIP of any amount you are comfortable with ₹500, ₹1,000, or more.
*Now simply choose a date close to your salary day so you do not forget. - Do not stop the SIP when the market falls. Keep going for at least 7 years.