3 weeks ago
5 small-cap funds top 20% annualised 10-year SIP returns
Small-cap mutual funds are a kind of investment that puts money into small companies.
People can invest in these funds regularly through a system called a SIP, or Systematic Investment Plan.
A report from Value Research looked at how these funds performed over many years.
It found that five small-cap funds earned more than 20% every year on average over 10 years.
That means people who stayed invested made a lot of money over time.
The Quant Small Cap Fund did the best over 10 years.
But the five-year rankings look different, with Bandhan Small Cap Fund on top.
Most of the new leading funds are too young to have 10-year results.
Only the Union Small Cap Fund stayed in the top five for all time periods.
This shows that fund performance can change with different market cycles.
Five small-cap mutual funds delivered annualised SIP returns above 20% over 10 years, according to Value Research data.
Quant Small Cap Fund led the 10-year list with 25.92% annualised SIP returns, followed by Nippon India Small Cap Fund (22.60%) and Axis Small Cap Fund (20.97%).
Bandhan Small Cap Fund topped the 5-year SIP rankings at 23.90%, ahead of ITI Small Cap Fund (23.80%) and Invesco India Smallcap Fund (22.87%).
Union Small Cap Fund is the only fund to feature in the top five across the three-, five- and 10-year SIP return rankings.
Top shorter-term performers such as Bandhan, ITI, Invesco India and Bank of India Small Cap Funds do not yet have a 10-year performance history.
- Who
- SIP investors in Indian small-cap mutual funds, including schemes such as Quant, Nippon India, Axis, Union and DSP Small Cap Funds.
- What
- A Value Research report showing five small-cap mutual funds returned over 20% annualised SIP returns over 10 years, along with newer 5-year and 3-year rankings.
- Where
- India's mutual fund industry.
- When
- Data as of 5th August 2026, covering 10-, 5- and 3-year periods.
- Why
- To highlight small-cap funds' long-term wealth-creation potential for investors who remained invested through multiple market cycles.
Key facts
- Top 10-year SIP return
- Quant Small Cap Fund - 25.92%
- Second-best 10-year SIP return
- Nippon India Small Cap Fund - 22.60%
- Top 5-year SIP return
- Bandhan Small Cap Fund - 23.90%
- Most consistent fund
- Union Small Cap Fund - top five over 3, 5 and 10 years
- Data source
- Value Research
- Data as of
- 5th August 2026
- 10-year performance threshold
- Over 20% annualised SIP returns
Sources
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