Top Small Mid Cap MFs: In the world of equity investments, small and mid-cap mutual funds have once again proven their potential to deliver massive returns over the long term.
If an investor had put ₹1 lakh in one of the Top Small Mid Cap MFs five years ago, the value could have skyrocketed up to ₹6.35 lakh today.
Equity mutual funds have increased lump sum investment by more than 6.35 times in 5 years
| Current value of ₹1 lakh investment 5 years ago | CAGR (%) | Investment Return (in x) | |
| Quant Small Cap Fund | 635,029.06 | 44.73 | 6.35 |
| Nippon India Small Cap Fund | 499,491.79 | 37.94 | 4.99 |
| Motilal Oswal Midcap Fund | 475,310.74 | 36.58 | 4.75 |
| Bandhan Small Cap Fund | 469,639.28 | 36.26 | 4.7 |
| HSBC Small Cap Fund | 449,789.93 | 35.08 | 4.5 |
| Bank of India Small Cap Fund | 446,380.95 | 34.88 | 4.46 |
| Franklin India Smaller Cos Fund | 444,213.2 | 34.75 | 4.44 |
| Edelweiss Small Cap Fund | 437,184.4 | 34.32 | 4.37 |
| HDFC Small Cap Fund | 437,171.38 | 34.32 | 4.37 |
| Invesco India Smallcap Fund | 430,761.42 | 33.92 | 4.31 |
| Canara Rob Small Cap Fund | 430,643.4 | 33.91 | 4.31 |
(Data as on 27 June 2025: Table content Info Source: Economic Times)
Quant Small Cap Delivers 44.73% CAGR
Quant Small Cap Fund leads the pack, offering a staggering compound annual growth rate (CAGR) of 44.73%.
This means an investment of ₹1 lakh turned into ₹6.35 lakh over just five years. Such explosive growth makes it the top performer among Top Small Mid Cap MFs.
Other Funds That Delivered Big
Nippon India Small Cap Fund, the largest small cap fund by assets, wasn’t far behind. It grew ₹1 lakh into ₹4.99 lakh, delivering a 37.94% CAGR. Motilal Oswal Midcap Fund also impressed, multiplying investments by 4.75 times with a 36.58% CAGR.
Bandhan Small Cap Fund, HSBC Small Cap Fund, and Bank of India Small Cap Fund followed closely, turning ₹1 lakh into between ₹4.4 and ₹4.7 lakh.
Several other funds such as Franklin India Smaller Cos Fund, Edelweiss Small Cap Fund, and HDFC Small Cap Fund delivered annual returns of over 33%, proving their mettle.
SBI Contra and Quant Mid Cap Shine
Among non-small cap options, SBI Contra Fund stood out by turning ₹1 lakh into ₹4.26 lakh. Quant Mid Cap Fund turned the same amount into ₹4.03 lakh. These funds continue to hold strong appeal for long-term investors seeking wealth creation.
ELSS and Flexi Cap Funds Also Gained
SBI Long Term Equity Fund, the oldest ELSS in India, grew investments at a 28.39% CAGR, making ₹1 lakh into ₹3.49 lakh. Parag Parikh Flexi Cap Fund, the country’s largest in its category, grew capital by 3.21 times with a CAGR of 26.28%.
Even Motilal Oswal Focused Fund managed a modest but stable growth of ₹1 lakh to ₹2.01 lakh with a CAGR of 14.97%.
Small Capital, Big Dreams
These numbers make it clear: strategic, long-term investment in Top Small Mid Cap MFs can transform even modest capital into substantial wealth.
With returns as high as 300% over five years, small cap funds have become a favorite among aggressive investors with a long-term horizon.
Disclaimer: Mutual fund investments are subject to market risks. Past performance does not guarantee future results. Please consult a financial advisor before investing.
