Top 3 Outperforming Small Cap Mutual Funds in March with Over 8% Return

As of March 20, 2025, the Nifty Smallcap 250 index has seen a commendable rise of 7.65%. The increase indicates that the smaller companies are bouncing back from any recent setbacks, showing resilience and potential growth.

The positive movement in the Nifty Smallcap 250 index has also positively impacted small-cap mutual funds, with several funds in this category delivering robust returns.

Top Performing Small Cap Mutual Funds

Several small-cap mutual funds have recorded significant gains this month. Below are 3 funds that have delivered impressive returns, providing insight into the performance of smaller companies within the sector:

1. Bank of India Small Cap Fund 

• Investment Objective: The primary aim of Bank of India Small Cap Fund is long-term capital appreciation by predominantly investing in equity and equity-related instruments of small-cap companies.
• NAV (as of March 19, 2025): ₹41.30
• AUM (as of February 28, 2025): ₹1,389.9 Crore
• Performance: This fund has seen an 8.6% return for the month of March so far, as of March 19, 2025.

2. LIC MF Small Cap Fund

• Investment Objective: LIC MF Small Cap Fund seeks long-term capital appreciation through investments in equity and equity-related instruments of small-cap companies.
• NAV (as of March 19, 2025): ₹27.62
• AUM (as of February 28, 2025): ₹433.6 Crore
• Performance: The fund has reported an 8.2% return for March 2025 (as of March 19).

3. Union Small Cap Fund

• Investment Objective: The goal of Union Small Cap Fund is long-term capital appreciation by investing primarily in small and mid-sized companies.
• NAV (as of March 19, 2025): ₹42.44
• AUM (as of February 28, 2025): ₹1,312.6 Crore
• Performance: This fund has achieved an 8.1% return so far in March 2025 (as of March 19).

Conclusion

The Nifty Smallcap 250 Index continues to show resilience, with a strong 7.65% increase this month. This has translated into impressive returns for several small-cap mutual funds, as highlighted above. The performance of these funds highlights the potential of investing in smaller companies, which, despite their size, can deliver strong capital appreciation over time.

These returns reflect the current market conditions and the rebound in the small-cap sector, making this an important time for investors to monitor the performance of small-cap mutual funds within their portfolios.

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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 in the securities market are subject to market risks, read all the related documents carefully before investing.