Archive · 29 Nov 2025
Small-Cap Funds: Performance and Investment Strategies in 2025
Small-cap funds have grown a lot, with many investors putting money into them.
These funds have done well over the past decade, but some are now more expensive than others.
Experts say that if you're investing in small-cap funds, you should pick ones that have beaten the market over a long time.
Only a few funds have not done as well as the market, so it's a good idea to move your money to better-performing funds.
The best funds have many different stocks and sometimes even include large and mid-cap stocks.
If you have money in funds that haven't done well recently, you might want to move your new investments to better funds, but you can keep your old investments for now.
Small-cap funds have seen significant growth, with assets under management reaching ₹3.73 trillion as of October 2025.
Most small-cap funds have performed well over the past decade, but some are now more expensive than the broader market.
Only a few small-cap funds have underperformed compared to the benchmark, making it important to choose the right funds.
Top-performing small-cap funds have diverse portfolios, sometimes including large and mid-cap stocks.
Investors should consider moving new investments to better-performing funds while holding onto existing investments in underperforming funds.
- Who
- Investors and financial analysts
- What
- Performance of small-cap funds and investment strategies
- When
- As of October 2025
- Where
- India
- Why
- To understand the current state and future potential of small-cap investments
- Assets Under Management
- ₹3.73 trillion as of October 2025
- Nifty Small Cap 250 TRI P/E
- Over 30 times as of October 2025
- Nifty 100 TRI P/E
- Around 22 times as of October 2025
- Underperforming Funds (10+ years track record)
- 2 out of 13
- Underperforming Funds (5+ years track record)
- 2 out of 7
- Recommended Small-Cap Funds
- Nippon India Small Cap and Bandhan Small Cap
- Top Holdings in Nippon India Small Cap
- Over 200 stocks
- Top Holdings in Axis Small Cap
- 141 companies
- Top Holdings in ICICI Prudential Small Cap
- 104 companies