According to reports from Mint, small-cap funds have emerged as the dominant performers across all investment horizons. Quant Small Cap Fund leads the 10-year rankings with an annualised SIP return of 26.05%, followed by Nippon India Small Cap Fund at 22.59%. The long-term rankings show four small-cap funds and four mid-cap funds feature in the top 10, with only two funds falling outside these categories. This pattern reinforces the trend of small-cap and mid-cap schemes consistently delivering superior long-term returns for systematic investment plan investors.
As reported by Mint, the Invesco India Mid Cap Fund emerged as the best-performing scheme with an annualised SIP return of 21.45% over three years, followed by SBI Children's Fund at 20.69% and HSBC Midcap Fund at 19.97%. The five-year rankings show Invesco India Mid Cap Fund continuing to lead with 23.69%, while Bandhan Small Cap Fund ranks second at 23.49%. Four of the top 10 schemes belong to the mid-cap or large & mid-cap categories, while another four are small-cap funds, demonstrating the consistent performance across different market capitalisation segments.
According to the analysis from Mint, Invesco Mutual Fund stands out with the broadest representation, with Invesco India Mid Cap Fund topping both the three-year and five-year rankings and also featuring among the top three over 10 years. Quant Mutual Fund dominates the long-term rankings, with Quant Small Cap Fund as the best-performing scheme over 10 years and Quant Flexi Cap Fund and Quant Mid Cap Fund also making the decade's top 10. Nippon India Mutual Fund has two schemes in the 10-year top 10, while HSBC, Bandhan and Bank of India Mutual Fund also feature repeatedly across multiple investment horizons, highlighting the consistent performance of these asset management companies.
Small-cap mutual funds are recommended only to individuals who can afford to take very high risk and volatility, with a long investment horizon being essential. These schemes invest in mid-sized companies that can be risky and volatile but have the potential to offer higher returns. Axis Small Cap Fund and SBI Small Cap Fund are specifically highlighted as suitable picks for investors willing to accept such high-risk profiles. The recommendation emphasizes that small-cap funds should be considered by moderate investors who understand the inherent volatility and require a long-term investment horizon for optimal results. Flexi cap schemes are recommended for moderate investors, investing across market capitalisations and sectors, while mid-cap funds are suitable for those seeking exposure to mid-sized companies with growth potential.
