Top 5 Smallcap Mutual Funds With Best Returns in 6 Years: No. 1 fund has converted Rs 1,75,000 lump sum investment into Rs 10,56,062

Top 5 Smallcap Mutual Funds With Highest Return in 6 Years: Smallcap mutual funds are considered high-growth investments. The reason is their up to 65 per cent exposure to smallcap stocks. Such a large proportion of investments in India’s high-potential smallcap companies provide them exposure to a good level of growth. But smallcap funds are highly vulnerable to market fluctuations for the same reason. If the market is falling, they may slide the fastest.

So smallcap funds  are suitable for investors with a long-term investment horizon.

In the 1-year period, many smallcap funds have registered negative growth.

But in a 6-year time frame, they have given up to 35 per cent annualised return, multiplying investor wealth by up to more than 6 times.

Here we take you through the top 5 smallcap mutual funds that have emerged the fastest in terms of annualised return (CAGR) in 6 years.

Also know how a Rs 1,75,000 lump sum investment in each fund has grown.  

Quant Small Cap Direct – Growth

The fund has given a 34.93 per cent annualised return in 6 years.

It has assets under management (AUM) of Rs 29,629 crore, while its net asset value (NAV) as on July 18, 2025, was Rs 286.6389.  

Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 21.14 per cent annualised return since its debut in January 2013.

With an expense ratio of 0.66 per cent, the fund has Rs 1,000 as the minimum SIP investment Rs 5,000 as the minimum lump sum investment. 

A Rs 1,75,000 lump sum investment in the fund in the 6-year period has grown to Rs 10,56,061.4.

Bank of India Small Cap Fund Direct – Growth

The fund has given a 29.82 per cent annualised return in the 6-year time frame.

It AUM of Rs 1,908 crore, while its NAV as as on July 18, 2025, was Rs 53.93.  

Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 29.22 per cent annualised return since its inception in November 2018.

At an expense ratio of 0.58 per cent, the fund has Rs 1,000 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment. 

A Rs 1,75,000 one-time investment in the fund in 6 years has converted into Rs 8,37,698.38.

Nippon India Small Cap Direct – Growth

The fund has given a 29.01 per cent annualised return the 6-year period.

It has an asset base of Rs 66,602 crore, while its unit price as on July 18, 2025, was Rs 195.09.  

Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 25.72 per cent annualised return since its launch in January 2013.

With an expense ratio of 0.64 per cent, the fund has Rs 500 as the minimum SIP investment. 

A Rs 1,75,000 one-time investment in the fund in the 6-year time frame has jumped to Rs 8,06,823.06.

Invesco India Smallcap Fund Direct – Growth

The fund has given a 27.57 per cent annualised return in 6 years.

It has a fund size of Rs 7,425 crore, while its unit price as on July 18, 2025, was Rs 47.7.  

Benchmarked against BSE 250 SmallCap TRI, the fund has given 26.0 per cent annualised return since its starting in October 2018.

At an expense ratio of 0.44 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 1,000 as the minimum lump sum investment. 

A Rs 1,75,000 one-time investment in the fund in the 6-year period has swelled to Rs 7,54,274.42.

Edelweiss Small Cap Fund Direct – Growth

The fund has given a 27.31 per cent annualised return in the 6-year time frame.

Its AUM is Rs 4,930 crore, while its NAV as on July 18, 2025, was Rs 50.09.  

Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 28.54 per cent annualised return since its beginning in January 2019.

With an expense ratio of 0.42 per cent, the fund has Rs 500 as the minimum SIP and Rs 1,000 as the minimum lump sum investment each. 

A Rs 1,75,000 one-time investment in the fund in 6 years has grown to Rs 7,45,097.59.