Small-cap mutual funds have demonstrated remarkable recovery over the past three months, with the category generating an average return of 22.41%, according to Value Research data. This performance significantly outpaced the Nifty Smallcap 250 TRI, which returned 20.73% during the same period. Within this strong category performance, four schemes emerged as clear outperformers, each delivering returns exceeding 30%. The top performer was JM Small Cap Fund, managed by Asit Bhandarkar, which delivered a return of 36.37%, followed by Trust MF Small Cap Fund managed by Mihir Vora at 32.10%, Bank of India Small Cap Fund managed by Alok Singh at 31.49%, and Motilal Oswal Small Cap Fund managed by Ajay Khandelwal at 30.33%.
Despite their strong recent performance, the order of top-performing funds changes significantly when measured over a one-year period. According to Value Research data, Trust MF Small Cap Fund leads with a 26.31% return over one year, followed by Bank of India Small Cap Fund at 18.28%, Motilal Oswal Small Cap Fund at 16.58%, and JM Small Cap Fund at 13.43%. This comparison reveals that while all four funds benefited from the recent small-cap rally, their relative performance varies considerably across different time horizons.
The comparison becomes challenging over longer periods due to the funds' relatively recent launch dates. As reported by Value Research, Trust MF Small Cap Fund is 1 year and 7 months old, JM Small Cap Fund has completed 2 years, while Motilal Oswal Small Cap Fund is 2 years and 6 months old. Since these schemes have not completed three years, comparable three-year and five-year return data is not yet available for them. The funds also vary significantly in size, with JM Small Cap Fund managing the smallest assets under management at ₹730 crore, while Motilal Oswal Small Cap Fund is the largest at ₹6,515 crore.
Among the four recent outperformers, Bank of India Small Cap Fund stands out as the only scheme with a track record extending beyond five years, having been in existence for 7 years and 6 months. According to Value Research data, this fund has delivered a three-year CAGR of 23.88%, ranking 8th among 33 small-cap funds, and a five-year CAGR of 20.72%, placing 5th among 25 schemes in the category. The remaining three funds are yet to complete three years since launch, limiting their comparative performance data across longer market cycles.
