3 days ago
Small-Cap Funds Fall in September as Only Four Gain
Small-cap funds invest in shares of smaller companies.
In September 2026, most of these funds lost money, and only four showed gains.
Samco Small Cap Fund had the biggest gain, at 6.20%.
Edelweiss Small Cap Fund had the biggest drop, at 5.03%.
The small-cap fund category fell 2.59% for the month.
The small-cap index fell even more, by 3.12%.
Over the full year, the fund category was up 9.92%.
This shows that a poor month can happen even when returns over a longer period are positive.
Four small-cap schemes posted positive returns in September 2026, led by Samco Small Cap Fund at 6.20%.
The small-cap fund category declined 2.59%, while the small-cap index fell 3.12%.
Edelweiss Small Cap Fund had the steepest monthly decline, falling 5.03%.
The category returned 9.92% over one year, compared with 2.92% for the small-cap index.
Among funds with reported one-year figures, Bank of India Small Cap Fund led at 29.25%; HDFC and Tata were the only schemes with negative returns.
- Who
- Small-cap mutual funds and the small-cap index.
- What
- Most small-cap funds declined in September 2026, while four schemes recorded positive returns.
- Where
- The Indian small-cap fund market.
- When
- September 2026, with one-year returns also reported.
- Why
- The figures show varied fund performance and a broader decline in the small-cap segment; the article does not identify a specific cause.
Monthly performance
One-year performance
Short-term declines versus longer-term gains
Monthly performance
September was weak: the fund category fell 2.59%, and most schemes posted losses.
One-year performance
The category remained up 9.92% over one year, and most funds with available figures had positive one-year returns.
Active funds versus index
Monthly performance
The small-cap fund category declined less than the index in September: -2.59% versus -3.12%.
One-year performance
Over one year, the category's 9.92% return exceeded the index's 2.92%.
Key facts
- Positive-return schemes
- 4
- Top September return
- Samco Small Cap Fund: 6.20%
- Lowest September return
- Edelweiss Small Cap Fund: -5.03%
- Category return, September 2026
- -2.59%
- Small-cap index return, September 2026
- -3.12%
- Category one-year return
- 9.92%
- Small-cap index one-year return
- 2.92%
- Data source
- Value Research
Sources
Related news
Taurus Leads Mid-Cap Funds as Sector Falls in September
Small-Cap Funds: High Returns Come With Varied Volatility
Flexi-Cap Funds Diverge as 31 Beat Falling Nifty 500
Active Mutual Funds Beat Nifty 500 During Two-Year Slump
Small-Cap Funds Lead 2026 Equity Mutual Fund Return Rankings
Small-Cap Funds Draw Strong Inflows Despite Frequent Deep Volatility
DSP Says Large-Caps Offer Better Value After Recent Divergence
Gupta Says Mid- and Small-Cap Valuations Reflect Growth
SEBI Launches Jagrook, Urges Investors to Avoid Tips
