Written by

, ET Online|

Dec 28, 2025, 10:05:53 AM IST

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Selection methodology

ETMutualFunds has shortlisted top small-cap funds based on mean rolling returns, consistency over the last three years, downside risk, outperformance and asset size (the threshold size is Rs 50 crore).

Agencies

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Axis Small Cap Fund

Launched in December 2013, this smallcap fund has delivered a 27.3% return based on rolling frequency over the last three years. Axis Small Cap Fund has remained in the third quartile for the last 31 months.

iStock

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SBI Small Cap Fund

Launched in December 2009, this smallcap fund has delivered a 25% return based on rolling frequency over the last three years. SBI Small Cap Fund has been in the fourth quartile over the last six months, after being in the third quartile earlier.

iStock

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Kotak Small Cap Fund

Launched in February 2005, this small-cap fund has delivered a 28.7% return based on rolling frequency over the last three years. Kotak Small Cap Fund has stayed in the fourth quartile for the last seven months, after being in the third quartile earlier.

IANS

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Nippon India Small Cap Fund

Launched in December 2010, this small-cap fund has delivered a 34% return based on rolling frequency over the last three years. Nippon India Small Cap Fund has been in the second quartile over the last three months, after being in the first quartile earlier.

Getty Images

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Suitability

Are you wondering why anyone would take on such high risk by investing in small-cap schemes? These schemes also have the potential to generate very high returns over the long term. That is why smallcap schemes are recommended only for aggressive investors with a very high risk appetite and a long investment horizon.