Best Small-Cap Mutual Funds for July 2026: Invesco India Smallcap Fund, Bandhan Small Cap Fund and More Lead Based on 5-Year CAGR

Small-cap mutual funds invest primarily in companies with relatively smaller market capitalisations and have the potential to deliver higher long-term returns. However, they also tend to be more volatile than large-cap or mid-cap funds. For investors with a higher risk appetite and a long-term investment horizon, small-cap funds can play an important role in portfolio growth. Here are some of the best-performing small-cap mutual funds for July 2026, ranked by their 5-year CAGR.

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 July 09, 2026.

Overview of Best Small Cap Mutual Funds

Invesco India Smallcap Fund

• 1-Year Return: 10.18%
• Expense Ratio: 0.39%
• 52-Week High NAV: ₹53.08
• 52-Week Low NAV: ₹40.90

Bandhan Small Cap Fund

• 1-Year Return: 5.71%
• Expense Ratio: 0.33%
• 52-Week High NAV: ₹55.47
• 52-Week Low NAV: ₹44.63

Quant Small Cap Fund 

• 1-Year Return: 7.75%
• Expense Ratio: 0.81%
• 52-Week High NAV: ₹315.97
• 52-Week Low NAV: ₹239.93

Best Small Cap Mutual Funds Based on 3-Year CAGR

Note: The list of best small cap mutual funds listed here are sorted based on 3-Year CAGR as of July 09, 2026.

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 July 09, 2026. 

Read More: Top 2 Performing Pharma and Healthcare Mutual Funds with Over 20% Annualised Returns in 2 Years!

Conclusion

While historical returns can offer insights into a fund's performance, they do not guarantee future results. Before investing in a small-cap mutual fund, consider factors such as your financial goals, investment horizon, risk tolerance, fund strategy, and expense ratio. Diversifying across different asset classes can also help manage overall portfolio risk.

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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 are subject to market risks, read all scheme-related documents carefully.