Top 7 Small Cap Mutual Funds With Highest Returns in 1 Year: Rs 2,50,000 one-time investment in No. 1 scheme is now worth Rs 2,91,000

Top 7 Small Cap Mutual Funds With Highest Returns in 1 Year: Small cap mutual funds have high growth potential that can grow an investment fast. But with high growth potential comes the risk of falling fast.

So, small cap funds are also highly vulnerable to market fluctuations.

The reason is that they need to maintain at least 65 per cent small cap stocks in their portfolio.

But once the market recovers, small cap funds bounce back fast and may multiply investor wealth within a few years.

That’s the reason the charm of small cap funds never dies down.

However, the funds are suitable only for investors with a long-term horizon.

The small cap mutual fund category has given a 19.16 per cent annualised return in 3 years, 24.18 per cent in 5 years, and 15.31 per cent in 10 years.

Know which are the top 7 mutual funds with highest annualised return (CAGR) in 1 year, and how a Rs 2,50,000 one-time investment in each fund has given during that period.

Motilal Oswal Small Cap Fund Direct – Growth

The small cap fund has given 16.43 per cent return in 1 year.

It has assets under management (AUM) of Rs 4,062 crore, while its net asset value (NAV) is Rs 12.3357.  

Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 18.92 per cent annualised return since its launch in December 2023.

At an expense ratio of 0.41 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 1,000 as the minimum lump sum investment. 

A Rs 2,50,000 one-time investment (lump sum) in the 1-year period has ballooned to Rs 2.91 lakh.

Bandhan Small Cap Fund Direct-Growth

The fund has given 12.21 per cent return in the 1-year period.

It has AUM of Rs 9,236 crore, while its NAV is Rs 42.857.  

Benchmarked against BSE 250 SmallCap TRI, the fund has given 33.76 per cent annualised return since its debut in February 2020.

With an expense ratio of 0.45 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment. 

A Rs 2,50,000 one-time investment in the 1-year time frame has sprung to Rs 2.81 lakh.

Invesco India Smallcap Fund Direct – Growth

The fund has given 9.02 per cent return in the 1-year time frame.

It has an asset base of Rs 5,905 crore, while its unit price is Rs 39.18.  

Benchmarked against BSE 250 SmallCap TRI, the fund has given 23.94 per cent annualised return since its beginning in October 2018.

At an expense ratio of 0.41 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 1,000 as the minimum lump sum investment. 

A Rs 2,50,000 one-time investment in 1 year has zoomed to Rs 2.73 lakh.

UTI Small Cap Fund Direct – Growth

The fund has given 5.92 per cent return in 1 year.

It has a fund size of Rs 4,351 crore, while its NAV is Rs 23.95.  

Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 23.27 per cent annualised return since its starting in December 2020.

With an expense ratio of 0.73 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment. 

A Rs 2,50,000 one-time investment in the 1-year period has jumped to Rs 2.65 lakh.

Tata Small Cap Fund Direct – Growth

The fund has given 5.22 per cent return in the 1-year period.

Its AUM is Rs 8,883 crore, while its NAV is Rs 39.2046.  

Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 24.23 per cent annualised return since its inception in October 2018.

At an expense ratio of 0.36 per cent, the fund has Rs 500 as the minimum SIP investment. 

A Rs 2,50,000 one-time investment in the 1-year time frame has jumped to Rs 2.63 lakh.

Bank of India Small Cap Fund Direct-Growth

The fund has given 3.86 per cent return in the 1-year time frame.

It has an asset base of Rs 1,556 crore, while its unit price is Rs 43.84.  

Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 27.05 per cent annualised return since its debut in November 2018.

With an expense ratio of 0.54 per cent, the scheme fund has Rs 1,000 as the minimum SIP investment and Rs 5,000 as the minimum lump sum investment. 

A Rs 2,50,000 one-time investment in 1 year has grown to Rs 2.6 lakh.

Kotak Small Cap Fund Direct-Growth

The fund has given 3.80 per cent return in 1 year.

It has a fund size of Rs 16,450 crore, while its NAV is Rs 264.99.  

Benchmarked against NIFTY Smallcap 250 TRI, the fund has given 19.46 per cent annualised return since its launch in January 2013.

At an expense ratio of 0.57 per cent, the fund has Rs 500 as the minimum SIP investment and Rs 1,000 as the minimum lump sum investment. 

A Rs 2,50,000 one-time investment in the 1-year period has converted into Rs 2.6 lakh.