Five small-cap funds delivered over 20% in 10-year SIP returns

The Story in Brief

Five small-cap mutual funds posted annualised SIP returns above 20% over the 10 years to 5 August 2026, according to Value Research data reported by Mint. Quant Small Cap Fund led with 25.92%, followed by Nippon India Small Cap Fund at 22.60%, Axis Small Cap Fund at 20.97%, Union Small Cap Fund at 20.81% and DSP Small Cap Fund at 20.27%.

Shorter time periods produced a different ranking. Bandhan Small Cap Fund topped the five-year list at 23.90%, while four funds led both the three- and five-year tables. Union Small Cap Fund was the only scheme to appear in the top five across three, five and 10 years. The data also shows that several recent leaders lack a 10-year record.

The Indian Opinion

The easy story is that small-cap SIPs reliably create wealth, but the data does not support such a blanket promise. Returns varied sharply by fund and period, while recent leaders have shorter histories. Past performance also does not remove the risk of steep falls in small companies. Investors should judge costs, holdings and ability to stay invested, not chase a ranking. The useful test is whether these funds retain their edge through the next full market cycle.

Source: livemint.com

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