Best Mid and Small Cap Funds in India for September 2025: Bandhan Small Cap, Invesco India Mid Cap and More Based on 3Y CAGR

Investing in mid and small cap funds can be a strategic way to tap into the growth potential of emerging companies. Unlike large-cap firms, which are generally more stable and well-established, mid and small cap companies often operate in high-growth phases, offering investors the opportunity for substantial returns. 

For investors willing to take on a bit more risk for potentially higher rewards, mid and small cap funds can play an important role in a balanced investment strategy. In this article, we’ll take a closer look at the best Mid and Small Cap funds in India for Sep 2025 based on 3Y CAGR.

Best Mid and Small Cap Funds in India for Sep 2025

Note: The Mid and Small Cap Funds mentioned above have been selected and sorted based on 3Y CAGR as of Sep 1, 2025

Overview of the Best Mid and Small Cap Funds in India

1. Bandhan Small Cap Fund

An open-ended equity fund focused primarily on small-cap stocks. The objective is to generate long-term wealth by investing in equity and equity-related instruments of small-cap companies.

• Expense Ratio: 0.40
• NAV: ₹45.05

2. Motilal Oswal Midcap Fund

This open-ended equity scheme seeks long-term capital growth by investing in high-quality mid-cap companies that possess sustainable competitive advantages and strong growth potential.

• Expense Ratio: 0.70
• NAV: ₹116.92

3. Invesco India Midcap Fund

Designed to achieve long-term capital appreciation through investments primarily in equity and related instruments of mid-cap companies.

• Expense Ratio: 0.55
• NAV: ₹176.44

Also Read: Best Mutual Funds for Lump Sum Investments in India for September 2025

Conclusion

While mid and small cap funds offer exciting growth opportunities, they require a long-term investment horizon and a higher risk appetite. Market fluctuations and economic downturns can have a more pronounced impact on these segments, making it crucial to choose funds with strong fundamentals and experienced fund managers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.