Best Small Cap Mutual Funds in September 2026: Quant Small Cap and Others Based on 5-Year CAGR

In September 2026, several small cap mutual funds showed impressive performance based on their 5-year Compound Annual Growth Rate (CAGR).  

This article highlights the top 6 funds, providing insights into their management, assets under management (AUM), and other key metrics. 

Top Small Cap Mutual Funds in September 2026 

Note: In the above data, The NAV is as of September 4, 2026, and AUM as of July 31, 2026 

Quant Small Cap Fund 

Managed by Sandeep Tandon, the Quant Small Cap Fund has an AUM of ₹34,068.9 crore and an expense ratio of 1.76%. The fund, which began on October 16, 1996, follows the Nifty Smallcap 250 - TRI index. Its NAV reached a 52-week high of ₹294.1, with a 5-year return of 19.18% and a 10-year return of 20.05%. The Fund’s NAV is at ₹294.1. 

Bank of India Small Cap Fund 

Alok Singh manages the Bank of India Small Cap Fund, with an AUM of ₹2,819.5 crore and an expense ratio of 2.23%. Launched on December 19, 2018, it also tracks the Nifty Smallcap 250 - TRI. The fund's NAV peaked at ₹58.46, achieving a 5-year return of 19.14%. The Fund’s NAV is at ₹58.37. 

Invesco India Smallcap Fund 

Under the management of Taher Badshah, the Invesco India Smallcap Fund has an AUM of ₹14,474.8 crore and an expense ratio of 1.86%. It started on October 30, 2018, and follows the BSE 250 Small Cap - TRI. The fund recorded a 5-year return of 19.1%. The Fund’s NAV is at ₹48.71. 

Nippon India Small Cap Fund 

Managed by Samir Rachh, the Nippon India Small Cap Fund boasts an AUM of ₹78,956.8 crore with an expense ratio of 1.41%. Initiated on September 16, 2010, it adheres to the Nifty Smallcap 250 - TRI. The fund's 5-year return stands at 18.83%, with a 10-year return of 20.27%. The Fund’s NAV is at ₹48.71. The Fund’s NAV is at ₹186.28. 

Bandhan Small Cap Fund 

Manish Gunwani manages the Bandhan Small Cap Fund, which has an AUM of ₹31,103 crore and an expense ratio of 1.75%. Launched on February 25, 2020, it tracks the BSE 250 Small Cap - TRI. The fund achieved a 5-year return of 18.67%. The Fund’s NAV is at ₹52.19. 

DSP Small Cap Fund 

Vinit Sambre oversees the DSP Small Cap Fund, with an AUM of ₹20,220.8 crore and an expense ratio of 1.7%. Established on June 14, 2007, it follows the BSE 250 Small Cap - TRI. The fund's 5-year return is 18.15%, with a 10-year return of 16.45%. The Fund’s NAV is at ₹232.68. 

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Conclusion 

The top 6 small cap mutual funds in September 2026, ranked by 5-year CAGR, include Quant Small Cap Fund at 19.18%, Bank of India Small Cap Fund at 19.14%, and Invesco India Smallcap Fund at 19.1%. Other notable funds are Nippon India Small Cap Fund, Bandhan Small Cap Fund, and DSP Small Cap Fund. 

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.