Best Small Cap Mutual Funds Based on 5-Year CAGR: Bank of India Small Cap, Invesco India Small Cap and Others

Small cap mutual funds can offer significant growth potential for investors willing to embrace higher risk. This article highlights the top 5 small cap mutual funds based on their 5-year Compound Annual Growth Rate (CAGR).  

These funds include Bank of India Small Cap Fund, Invesco India Smallcap Fund, Bandhan Small Cap Fund, Nippon India Small Cap Fund, and Quant Small Cap Fund. 

Top 5 Small Cap Mutual Funds by 5-Year CAGR 

Note: In the above data, the NAV is as of September 29, 2026, and AUM as of August 31, 2026. 

Bank of India Small Cap Fund 

Managed by Alok Singh, the Bank of India Small Cap Fund has an AUM of ₹3,307.2 crore and an expense ratio of 2.19%. Launched on December 19, 2018, it follows the Nifty Smallcap 250 - TRI benchmark. The fund's 5-year return stands at 18.41%, with a NAV of ₹58.41. It primarily invests in capital goods, with 76.59% allocation to small cap stocks. 

Invesco India Smallcap Fund 

Under the management of Taher Badshah, the Invesco India Smallcap Fund boasts an AUM of ₹15,744.4 crore and an expense ratio of 1.84%. Initiated on October 30, 2018, it tracks the BSE 250 Small Cap - TRI. The fund has achieved an 18.12% return over 5 years, with a NAV of ₹46.99. Healthcare is its highest sector allocation, with 60.45% in small cap stocks. 

Bandhan Small Cap Fund 

Managed by Manish Gunwani, the Bandhan Small Cap Fund has an AUM of ₹34,176 crore and an expense ratio of 1.74%. Launched on February 25, 2020, it follows the BSE 250 Small Cap - TRI. The fund's 5-year return is 17.86%, with a NAV of ₹51.19. Financials dominate its sector allocation, with 69.67% in small cap stocks. 

Nippon India Small Cap Fund 

Samir Rachh manages the Nippon India Small Cap Fund, which has an AUM of ₹82,580.3 crore and an expense ratio of 1.41%. Started on September 16, 2010, it follows the Nifty Smallcap 250 - TRI. The fund has a 5-year return of 17.53%, with a NAV of ₹180.77. It focuses on capital goods, with 68.84% in small cap stocks. 

Quant Small Cap Fund 

Led by Sandeep Tandon, the Quant Small Cap Fund has an AUM of ₹35,557.2 crore and an expense ratio of 1.76%. Launched on October 16, 1996, it tracks the Nifty Smallcap 250 - TRI. The fund's 5-year return is 17.52%, with a NAV of ₹286.35. Financials are its highest sector allocation, with 56.78% in small cap stocks. 

Read More: Best Gold Mutual Funds for October 2026 Based on 5-Year CAGR: Quantum Gold, SBI Gold and Others! 

Conclusion 

The top 5 small cap mutual funds based on 5-year CAGR include Bank of India Small Cap Fund at 18.41%, Invesco India Smallcap Fund at 18.12%, Bandhan Small Cap Fund at 17.86%, Nippon India Small Cap Fund at 17.53%, and Quant Small Cap Fund at 17.52%. These funds have varying sector focuses and allocations to small cap stocks. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.