Bandhan Small Cap Fund leads the category in 5-year monthly SIP returns: Check the list of the top and bottom 5 schemes
Small-cap mutual funds are known for their higher growth potential, but they also carry higher volatility and can see sharp declines during market downturns. However, a five-year SIP return shows how different small-cap schemes have rewarded investors.
An investor who started a monthly SIP of ₹10,000 in a small-cap fund on 9 August 2021 and continued it until 7 August 2026 would have invested ₹6 lakh.
Based on data shared by B. Padmanaban, Founder & Managing Director, Fortune Investment Services on X, the investment would have grown to at least ₹8.12 lakh in five years, with some funds delivering significantly higher gains.
| Small-cap funds | Total investment | XIRR | Final value | Wealth created |
| Bandhan Small Cap Fund | ₹6,00,000 | 22.02% | ₹10,35,560 | ₹4,35,560 |
| ITI Small Cap Fund | ₹6,00,000 | 21.59% | ₹10,24,685 | ₹4,24,685 |
| Invesco India Smallcap Fund | ₹6,00,000 | 21.16% | ₹10,14,120 | ₹4,14,120 |
| Bank of India Small Cap Fund | ₹6,00,000 | 20.47% | ₹9,97,320 | ₹3,97,320 |
| Union Small Cap Fund | ₹6,00,000 | 18.36% | ₹9,47,421 | ₹3,47,421 |
*Monthly SIP of ₹10,000 from 9 August 2021 to 7 August 2026
Bandhan Small Cap Fund emerged as the top performer in this category. If an investor had redeemed the mutual fund investment on 7 August, he would have received over ₹10.35 lakh. This resulted in an XIRR of 22.02% on a total investment of ₹6 lakh.
ITI Small Cap and Invesco India Smallcap Funds also crossed the ₹10 lakh mark, while Bank of India and Union Small Cap Fund remained close behind, with ₹9.97 lakh and ₹9.47 lakh, respectively.
Bottom 5: Small-cap funds with the lowest SIP returns
At the other end, Tata Small Cap had the lowest investment value among the small-cap funds at ₹8.13 lakh. This does not mean investors lost money. The SIP still generated an XIRR of 12.12% on the ₹6 lakh invested.
| Small-cap funds | Total investment | XIRR | Final value | Wealth created |
| Tata Small Cap Fund | ₹6,00,000 | 12.12% | ₹8,12,962 | ₹2,12,962 |
| Kotak Small Cap Fund | ₹6,00,000 | 12.22% | ₹8,14,913 | ₹2,14,913 |
| SBI Small Cap Fund | ₹6,00,000 | 12.48% | ₹8,20,212 | ₹2,20,212 |
| ICICI Prudential Smallcap Fund | ₹6,00,000 | 12.71% | ₹8,24,850 | ₹2,24,850 |
| Canara Robeco Small Cap Fund | ₹6,00,000 | 12.84% | ₹8,27,516 | ₹2,27,516 |
*Monthly SIP of ₹10,000 from 9 August 2021 to 7 August 2026
The comparison highlights the wide gap between the best- and weak-performing funds. The difference between Bandhan Small Cap and Tata Small Cap was about ₹2.23 lakh on the same ₹6 lakh investment.
Overall, the analysis shows that small-cap SIP outcomes can vary significantly across schemes, even over a five-year period.
Padmanaban mentioned that the numbers “may offer some interesting insights and a different perspective”, while urging investors to conduct their own due diligence and make decisions based on their goals, risk appetite and investment horizon.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.
