Smallcap Mutual Funds in May 2025: 30 of 30 Funds Delivered Positive Returns; Top Fund Gained 14%

In May 2025, the small-cap mutual fund category witnessed a strong but uneven performance. Out of the 30 schemes, 3 managed to deliver double-digit gains while the majority stayed within the single-digit bracket. This trend shows a selective momentum in the small-cap segment, where a few funds significantly outperformed the average, but most remained within moderate return ranges.

Overview of Smallcap Fund Performance in May 2025

Smallcap mutual funds recorded an average return of 8.20% in May 2025. The data, calculated from May 1 to May 31, reflects the mixed nature of performance within this fund category. Although the broader smallcap market showed positive trends, the distribution of returns indicates that only a handful of schemes could capitalise on market opportunities.

DSP Small Cap Fund Emerges as the Top Performer

DSP Small Cap Fund stood out as the best-performing scheme for May 2025. It delivered a return of 14.05%, outpacing its peers by a significant margin. This exceptional monthly gain places it ahead of all other funds in the smallcap category for the same period.

Read More: Top 5 Performing Mutual Funds That Gave Highest Returns in Last 10 Years! 

Other Double-Digit Return Generators

2 other funds joined DSP in delivering double-digit returns. Quantum Small Cap Fund offered a return of 11.06%, while Motilal Oswal Small Cap Fund followed closely with a monthly gain of 10.30%. These schemes were able to identify opportunities in the smallcap space that led to stronger results compared to the category average.

Majority of Funds Show Modest Gains

While a few funds delivered strong returns, 27 out of the 30 smallcap schemes remained in the single-digit return range. Nippon India Small Cap Fund, the largest in terms of assets under management in this category, posted a return of 7.39%. This figure aligns closely with the category average, suggesting stable but unspectacular performance.

Conclusion

The median return for smallcap mutual funds in May 2025 stood close to the category average of 8.20%, indicating a broadly stable performance across most schemes. While a few funds outperformed with double-digit gains, the majority clustered around mid-single-digit returns, highlighting a consistent yet cautious uptrend in the smallcap segment during the month.

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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.