Best Small Cap Mutual Funds Based on 5-Year CAGR: Bank of India Small Cap, Bandhan Small Cap and Others

Small cap mutual funds can offer significant growth potential for investors willing to embrace higher risk. This article highlights the top 5 small cap mutual funds based on their 5-year Compound Annual Growth Rate (CAGR).  

These funds include Bank of India Small Cap Fund, Bandhan Small Cap Fund, Invesco India Smallcap Fund, Nippon India Small Cap Fund, and Quant Small Cap Fund. 

Top 5 Small Cap Mutual Funds by 5-Year CAGR 

Note: In the above data, the NAV is as of October 29, 2026, and AUM as of September 30, 2026. 

Bank of India Small Cap Fund 

Managed by Alok Singh, the Bank of India Small Cap Fund has an AUM of ₹3,670.8 crore and an expense ratio of 2.17%. Launched on December 19, 2018, it follows the Nifty Smallcap 250 - TRI benchmark.  

The fund's 5-year return stands at 17.19%, with a NAV of ₹55.69. It primarily invests in capital goods, with 78.28% allocation to small cap stocks. 

Bandhan Small Cap Fund 

Managed by Manish Gunwani, the Bandhan Small Cap Fund has an AUM of ₹35,855.6 crore and an expense ratio of 1.72%. Launched on February 25, 2020, it follows the BSE 250 Small Cap - TRI benchmark.  

The fund's 5-year return is 16.88%, with a NAV of ₹49.01. Financials dominate its sector allocation, with 69.64% in small cap stocks. 

Invesco India Smallcap Fund 

Under the management of Taher Badshah, the Invesco India Smallcap Fund boasts an AUM of ₹16,130.6 crore and an expense ratio of 1.83%. Initiated on October 30, 2018, it tracks the BSE 250 Small Cap - TRI.  

The fund has achieved a 16.7% return over 5 years, with a NAV of ₹45.75. Financials is its highest sector allocation, with 60.24% in small cap stocks. 

Nippon India Small Cap Fund 

Samir Rachh manages the Nippon India Small Cap Fund, which has an AUM of ₹80,905.6 crore and an expense ratio of 1.4%. Started on September 16, 2010, it follows the Nifty Smallcap 250 - TRI.  

The fund has a 5-year return of 16.52%, with a NAV of ₹173.31. It focuses on capital goods, with 68.8% in small cap stocks. 

Quant Small Cap Fund 

Led by Sandeep Tandon, the Quant Small Cap Fund has an AUM of ₹35,572 crore and an expense ratio of 1.75%. Launched on October 16, 1996, it tracks the Nifty Smallcap 250 - TRI.  

The fund's 5-year return is 16.31%, with a NAV of ₹276.5. Financials are its highest sector allocation, with 56.37% in small cap stocks. 

Read More: Top 5 Balanced Advantage SWP Mutual Funds for Dynamic Asset Allocation for November 2026! 

Conclusion 

The top 5 small cap mutual funds based on 5-year CAGR include Bank of India Small Cap Fund at 17.19%, Bandhan Small Cap Fund at 16.88%, Invesco India Smallcap Fund at 16.7%, Nippon India Small Cap Fund at 16.52%, and Quant Small Cap Fund at 16.31%. These funds have varying sector focuses and allocations to small cap stocks. 

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.