Best Small Cap Mutual Funds for February 2026: Quant, Nippon India, Bandhan and More Lead Based on 5-Year CAGR

Small cap funds invest in companies that are ranked 251st and below based on full market capitalisation. They allocate at least 65% of their assets to equities and equity-related instruments of small-cap firms. Compared to mid-cap and large-cap funds, these funds carry a higher level of risk.

Over the years, several funds in this category have delivered impressive long-term returns, attracting investors looking to build wealth through equity exposure. Rankings based on 5-year CAGR, 3-year CAGR, and assets under management (AUM) highlight consistent performers such as Quant Small Cap Fund, Nippon India Small Cap Fund, Bandhan Small Cap Fund, and others. Understanding these leaders can help investors make more informed decisions while balancing return expectations with risk.

Best Small Cap Mutual Funds Based on 5–Yr CAGR

Note: The list of best small cap mutual funds listed here are sorted based on 5-Year CAGR as of Feb 09, 2025. 

Overview of Best Small Cap Mutual Funds

1. Quant Small Cap Fund

• 52-Week High: ₹306.52
• 52-Week Low: ₹28.66
• 1-Month Return: 5.35%
• 1-Year Return: 1.16%
• CAGR: 16.85%

2. Nippon India Small Cap Fund

• 52-Week High: ₹204.40
• 52-Week Low: ₹8.59
• 1-Month Return: 3.25%
• 1-Year Return: 2.31%
• CAGR: 23.86%

3. Bandhan Small Cap Fund

• 52-Week High: ₹53.06
• 52-Week Low: ₹8.19
• 1-Month Return: 3.38%
• 1-Year Return: 6.10%
• CAGR: 31.05%

Best Small Cap Mutual Funds Based on 3–Yr CAGR

Note: The list of best small cap mutual funds listed here are sorted based on 3-Year CAGR as of Feb 09, 2025.

Best Small Cap Mutual Funds Based on AUM

Note: The list of best small cap mutual funds listed here are sorted based on AUM as of Feb 09, 2025. 

Read More: Best 10 International Mutual Funds in India for February 2026.

Conclusion

Small cap mutual funds continue to attract investors seeking higher long-term returns, with funds like Quant Small Cap Fund, Nippon India Small Cap Fund, and Bandhan Small Cap Fund standing out across performance and size metrics. Investors should therefore assess their risk tolerance, investment horizon, and diversification needs before choosing the most suitable small cap fund for their portfolio.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private 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 are subject to market risks, read all scheme-related documents carefully.