Top 5 Smallcap Funds That Multiplied Wealth In Just 6 Years

Smallcap mutual funds have gained popularity among high-risk, high-reward investors, thanks to their potential for long-term capital growth. Despite short-term volatility, certain funds have delivered exceptional returns over six years, turning modest investments into substantial wealth. For those with a long investment horizon, smallcap schemes offer exposure to fast-growing Indian companies. Here's a look at the five best-performing smallcap mutual funds based on their six-year CAGR and how a lump sum investment has grown in each.

Quant Small Cap Fund Delivers Over ₹10 Lakh From ₹1.75 Lakh

Quant Small Cap Fund has emerged as the strongest performer over the past six years, delivering a remarkable annualised return of 34.93%. A one-time investment of ₹1.75 lakh in 2019 would now be worth ₹10,56,061. The scheme currently manages assets worth ₹29,629 crore and is benchmarked against the NIFTY Smallcap 250 TRI. With a NAV of ₹286.64 (as of July 18, 2025), it remains a favourite among aggressive investors. The fund charges an expense ratio of 0.66%, with a minimum lump sum investment set at ₹5,000.

Bank of India Small Cap Fund Delivers Strong Growth

The Bank of India Small Cap Fund has delivered a six-year CAGR of 29.82%, converting a ₹1.75 lakh investment into ₹8,37,698. It has been in operation since November 2018 and currently holds an asset size of ₹1,908 crore. With a NAV of ₹53.93 and an expense ratio of 0.58%, it remains cost-efficient. The fund is benchmarked against the NIFTY Smallcap 250 TRI and offers investors a robust mix of growth and reasonable expense.

Nippon India Small Cap Fund Maintains Steady Performance

The Nippon India Small Cap Fund is another consistent performer with a six-year annualised return of 29.01%. If ₹1.75 lakh was invested six years ago, the value would now stand at ₹8,06,823. This fund is one of the largest in its category with a massive AUM of ₹66,602 crore. Its NAV as on July 18, 2025, is ₹195.09. Benchmarking against the NIFTY Smallcap 250 TRI, it has also maintained a long-term return of 25.72% since inception. The fund’s expense ratio is 0.64%, with SIPs starting at ₹500.

Invesco India Smallcap Fund Offers Balanced Growth

The Invesco India Smallcap Fund has delivered an annualised return of 27.57% over the past six years. A ₹1.75 lakh lump sum investment in this period would now be worth ₹7,54,274. With a fund size of ₹7,425 crore and a NAV of ₹47.70, this scheme has seen stable growth. Benchmarked against the BSE 250 SmallCap TRI, it launched in October 2018 and maintains an expense ratio of just 0.44%—among the lowest in its category. Minimum investments start at ₹500 for SIP and ₹1,000 for lump sum.

Edelweiss Small Cap Fund Shows Consistent Returns

The Edelweiss Small Cap Fund has returned 27.31% CAGR over six years, with a ₹1.75 lakh investment growing to ₹7,45,097. It manages ₹4,930 crore in assets, and its NAV as on July 18, 2025, stands at ₹50.09. It benchmarks against the NIFTY Smallcap 250 TRI and has shown a return of 28.54% since inception in January 2019. The expense ratio is a low 0.42%, making it an efficient choice for long-term investors looking for exposure to the smallcap space.

Smallcap Funds Require Patience But Can Build Wealth

While smallcap mutual funds can be volatile in the short term, history shows that patient investors are rewarded with significant long-term gains. These funds tap into India’s fast-growing smaller companies, which often outperform larger peers over time. However, investors should consider these schemes only if they can stay invested for 5–7 years or longer and are comfortable with market ups and downs.

Disclaimer: The content in this article is intended for general information only. For personalised advice and accurate gratuity calculations, please consult a qualified financial advisor or your organisation’s HR department.