How much can you earn by investing ₹10,000 every month in small-cap mutual funds? Over 5 and 10 years, top-performing small-cap funds have turned such systematic investment plans (SIPs) into substantial amounts. This article explains how five leading funds performed, their returns, and the risks involved.
- Over 10 years, the Nippon India Small Cap Fund grew a ₹12 lakh investment to about ₹45 lakh.
- In 5 years, the Invesco India Smallcap Fund led with a 19.34% annual return, turning ₹6 lakh into approximately ₹10.14 lakh.
- Other top 5-year funds include Bandhan Small Cap, Bank of India Small Cap, Nippon India Small Cap, and Quant Small Cap Funds.
- Risk varies among funds, with HSBC Small Cap Fund showing the highest volatility and SBI Small Cap Fund the lowest.
- Recent one-year returns differ widely, indicating uneven short-term performance despite strong long-term growth.
What were the top small-cap SIP returns over 10 years?
The Nippon India Small Cap Fund topped the 10-year list with an annual return of 20.73%. A ₹10,000 monthly SIP over 10 years (totaling ₹12 lakh) would have grown to roughly ₹45 lakh. Other funds in the top five include Quant Small Cap Fund (20.51%), Axis Small Cap Fund (19.46%), SBI Small Cap Fund (18.16%), and HSBC Small Cap Fund (18.08%).
Note that Bandhan, Invesco, and Bank of India funds are not on the 10-year list because they have not completed a decade yet.
How did the top small-cap SIPs perform over 5 years?
Over 5 years, the Invesco India Smallcap Fund led with a 19.34% annual return. A ₹10,000 monthly SIP (₹6 lakh total) would have grown to about ₹10.14 lakh, which is 1.69 times the invested amount. Bandhan Small Cap Fund followed closely with 19.13% returns and ₹10.08 lakh corpus, and Bank of India Small Cap Fund returned 18.53%, growing to ₹9.91 lakh.
Nippon India Small Cap Fund and Quant Small Cap Fund both delivered 17.09% annual returns, resulting in around ₹9.5 lakh after 5 years.
What risks are associated with these small-cap funds?
Risk levels vary among the funds. HSBC Small Cap Fund has the highest standard deviation at 1.18, indicating more price swings. Bank of India and Invesco funds also show high volatility with standard deviations above 1.1. SBI Small Cap Fund is the most stable with a standard deviation of 0.93.
Beta values, which measure sensitivity to market movements, range from 0.78 (SBI) to 0.99 (HSBC). Sharpe ratios, indicating risk-adjusted returns, range from 0.02 (Nippon India and SBI) to 0.08 (Bank of India).
How have these funds performed recently?
Recent one-year returns have been uneven. Bank of India Small Cap Fund gained 25.82%, ranking fourth among 36 schemes, and Invesco India Smallcap Fund returned 19.28%, ranking third. Meanwhile, Nippon India Small Cap Fund returned 7.14%, SBI Small Cap Fund 5.57%, and Axis Small Cap Fund 8.25% over the same period.
Fund size does not necessarily affect recent performance. Nippon India Small Cap Fund is the largest with assets worth ₹76,902.83 crore, followed by SBI and Bandhan. Bank of India Small Cap Fund is the smallest at ₹3,685.24 crore.
What should investors keep in mind?
First, long-term SIPs in top small-cap funds can significantly grow investments, but returns vary widely even among the best performers. Second, these funds come with high volatility, meaning investors should be prepared for price swings. Third, recent performance can differ from long-term trends, so it is important to consider both when investing.
This analysis uses returns data from the Association of Mutual Funds in India (AMFI) as of November 11, 2026. It is for informational purposes only and not investment advice. The final value of SIP investments can vary depending on market conditions and the timing of investments.
