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

Small-cap funds invest at least 65% of their portfolio in small-cap stocks and related equity instruments. While they offer the potential for higher returns, they are generally more volatile and carry greater risk than large-cap and mid-cap funds.

Over the years, several small-cap funds have generated strong long-term returns, making them a popular choice among investors seeking capital appreciation. Rankings based on metrics such as 5-year CAGR, 3-year CAGR, and assets under management (AUM) showcase some of the category's leading performers, including funds from Nippon India, Quant, Bandhan, and other asset management companies. Evaluating these funds across performance and size can help investors identify suitable options based on their investment goals and risk tolerance.

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 June 08, 2026. 

Overview of Best Small Cap Mutual Funds

1. Bandhan Small Cap Fund

• Net Asset Value (NAV): ₹51.94
• 1-Year Return: 2.23%
• CAGR: 29.96%
• Expense Ratio: 0.34%
• Assets Under Management (AUM): ₹25,345.79 crore

2. Quant Small Cap Fund

• NAV: ₹288.99
• 1-Year Return: 4.93%
• CAGR: 17.25%
• Expense Ratio: 0.69%
• Assets Under Management (AUM): ₹30,373.69 crore

3. Invesco India Smallcap Fund

• NAV: ₹48.31
• 1-Year Return: 4.88%
• CAGR: 22.99%
• Expense Ratio: 0.40%
• Assets Under Management (AUM): ₹11,038.23 crore

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 June 08, 2026.

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 June 08, 2026.

Read More: Best Index Funds For June 2026: LIC Mutual Fund, ICICI Prudential Mutual Fund and More Based on 10-Year CAGR!

Conclusion

Small-cap mutual funds remain a popular choice for investors aiming for long-term wealth creation, as they offer the potential for higher returns compared to many other equity fund categories. Funds such as Bandhan Small Cap Fund, Quant Small Cap Fund, Nippon India Small Cap Fund, and Invesco India Smallcap Fund have delivered strong performance over the years. However, since small-cap funds can be more volatile, investors should carefully evaluate their financial goals, risk appetite, and investment time frame before making an investment decision. Maintaining a diversified portfolio can also help manage risk while benefiting from the growth potential of small-cap stocks.

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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.