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.
| Name | AUM (₹ Crore) | 3Y CAGR (%) |
| Bandhan Small Cap Fund | 14,062.19 | 30.27 |
| Motilal Oswal Midcap Fund | 33,608.53 | 29.46 |
| Invesco India Midcap Fund | 7,405.92 | 28.53 |
| ITI Small Cap Fund | 2,679.81 | 27.55 |
| Invesco India Small Cap Fund | 7,580.46 | 26.21 |
Note: The Mid and Small Cap Funds mentioned above have been selected and sorted based on 3Y CAGR as of Sep 1, 2025
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.
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.
Designed to achieve long-term capital appreciation through investments primarily in equity and related instruments of mid-cap companies.
Also Read: Best Mutual Funds for Lump Sum Investments in India for September 2025
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.
Published on: Sep 1, 2025, 10:09 AM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
