Comprehensive Fund Analysis
Top 5 Small Cap Funds — Explosive Growth Potential
A data-driven comparison of India’s best-performing small cap mutual funds ranked by 10-year CAGR — multibagger territory for patient, long-term investors.
Data as of March 2026 | Direct Plans | Benchmark: Nifty Smallcap 250 TRI
Benchmark Context: Nifty Smallcap 250 TRI
How the index itself has performed — your funds should beat this
1
Nippon India Small Cap Fund
Fund Manager: Samir Rachh | Since Jun 2010
Largest Small Cap Fund in India
AUM: ₹67,641 Cr
Expense: 0.66%
2
Quant Small Cap Fund
Fund Manager: Pushpa Rai | Since Jan 2013
Highest 5-Year CAGR
AUM: ₹27,653 Cr
Expense: 0.83%
3
Axis Small Cap Fund
Fund Manager: Anupam Tiwari | Since Jan 2013
Consistent Compounder
AUM: ₹26,007 Cr
Expense: 0.56%
4
HDFC Small Cap Fund
Fund Manager: Chirag Setalvad | Since Jan 2013
Lowest Volatility
AUM: ₹37,423 Cr
Expense: 0.80%
5
Bandhan Small Cap Fund
Fund Manager: Anoop Bhaskar | Since 2020
★ 5-Star Rated
AUM: ₹20,474 Cr
Expense: 0.51%
Side-by-Side: All Parameters at a Glance
Direct Plans • Returns as of Mar 2026 • Risk metrics trailing 3 years
| Parameter |
Nippon India |
Quant |
Axis |
HDFC |
Bandhan |
Benchmark |
| NAV (₹) | 168.84 | 245.93 | 109.81 | 138.59 | 45.75 | — |
| AUM (₹ Cr) | 67,641 | 27,653 | 26,007 | 37,423 | 20,474 | — |
| Expense Ratio | 0.66% | 0.83% | 0.56% | 0.80% | 0.51% | — |
| 1-Year Return | -1.7% | -3.0% | -1.9% | 0.1% | 0.9% | -3.5% |
| 3-Year CAGR | 19.5% | 19.4% | 17.2% | 16.4% | 29.1% | 18.4% |
| 5-Year CAGR | 21.8% | 23.7% | 18.6% | 19.5% | 22.9% | 18.5% |
| 10-Year CAGR | 21.1% | 18.4% | 19.0% | 18.3% | — | 15.2% |
| Since Inception | ~20.5% | ~25.5% | ~20.2% | ~19.8% | ~28.0% | — |
| Sharpe Ratio | 0.65 | -0.27 | 0.72 | 0.65 | 1.1 | — |
| Alpha | — | -1.84 | — | — | — | 0 |
| Beta | 0.92 | 0.88 | 0.85 | 0.87 | 0.90 | 1.00 |
| Std Deviation | 16.8% | 15.16% | 14.2% | 14.60% | 15.8% | — |
| Sortino Ratio | 0.02 | — | — | — | — | — |
| Min SIP | ₹100 | ₹100 | ₹100 | ₹100 | ₹100 | — |
| Exit Load | 1% if redeemed within 12 months (standard across all) | — |
| Rating | ★★★★ | ★★★★ | ★★★★ | ★★★★ | ★★★★★ | — |
10-Year CAGR (%)
The most important long-term metric
5-Year CAGR (%)
Recent medium-term performance
Expense Ratio (%)
Lower is better — direct impact on returns
Sharpe Ratio
Risk-adjusted return — higher is better
21.1%
Highest 10-Year CAGR
Nippon India
0.51%
Lowest Expense Ratio
Bandhan
1.10
Best Sharpe Ratio
Bandhan
0.85
Lowest Beta (least volatile)
Axis
₹67,641 Cr
Largest AUM
Nippon India
₹10,000/month SIP — What Would You Have Today?
Hypothetical SIP started 10 years ago • Based on actual fund CAGR • Total invested: ₹12,00,000
| Fund |
10-Yr CAGR |
Approx Corpus (₹) |
Wealth Gain (₹) |
Wealth Multiplier |
| Nippon India Small Cap |
21.1% |
₹42.5 L |
₹30.5 L |
3.54x |
| Axis Small Cap |
19.0% |
₹37.5 L |
₹25.5 L |
3.13x |
| Quant Small Cap |
18.4% |
₹36.2 L |
₹24.2 L |
3.02x |
| HDFC Small Cap |
18.3% |
₹36.0 L |
₹24.0 L |
3.00x |
| Bandhan Small Cap |
Since Inception |
~₹38.0 L |
~₹26.0 L |
~3.17x |
| Nifty Smallcap 250 TRI |
15.2% |
₹30.0 L |
₹18.0 L |
2.50x |
Jargon Buster — What These Metrics Mean
Understanding every parameter in the analysis above
| Metric | What It Tells You | Ideal Value |
|---|
| CAGR | Compounded Annual Growth Rate — smoothed annual return over a period | Higher = Better |
| Expense Ratio | Annual fee charged by the fund house; directly reduces your returns | Lower = Better |
| Sharpe Ratio | Return earned per unit of risk taken; measures efficiency of returns | > 1.0 is Good |
| Alpha | Excess return over benchmark after adjusting for risk; shows manager skill | Positive = Better |
| Beta | Sensitivity to market moves; Beta < 1 = less volatile than market | < 1.0 = Less Risky |
| Std Deviation | Measures how much returns fluctuate; higher = more volatile | Lower = Smoother |
| Sortino Ratio | Like Sharpe but only penalizes downside volatility; more relevant | Higher = Better |
| AUM | Total money managed; very high AUM in small cap can limit agility | Sweet spot: ₹15K–60K Cr |
| Exit Load | Penalty for early redemption; standard is 1% if redeemed within 1 year | Lower/Shorter = Better |
| Sortino Ratio | Risk-adjusted return focusing on downside volatility only | Higher = Better |
Tax Impact on Small Cap Fund Returns (FY 2025-26)
Equity mutual fund taxation rules as per current budget
| Holding Period | Tax Type | Tax Rate | Exemption |
|---|
| < 12 months | STCG (Short Term) | 20% | None |
| > 12 months | LTCG (Long Term) | 12.5% | First ₹1.25 Lakh/year exempt |
Why Sai Assets?
We believe financial literacy shouldn't be locked behind jargon and paywalls. Every report on this platform is built on real data, peer-reviewed metrics, and zero sales bias.
Our mission is simple — help everyday investors make informed decisions using the same analytical frameworks that professionals use.
Disclaimer: All data sourced from Groww, Tickertape, Advisorkhoj, ET Mutual Funds & Scripbox (as of March 2026). All returns shown are for Direct Growth plans.
Past performance is not indicative of future returns. This platform is for educational purposes only and does not constitute financial advice.
Please consult a SEBI-registered investment advisor before making any investment decisions.