Top Consistent Performing Small-Cap Mutual Funds for Long-Term Wealth Creation: Small-cap mutual funds are attractive because they invest in emerging companies with high growth potential, which may deliver significantly higher returns over the long term compared to large-cap funds. They also help diversify a portfolio and allow investors to benefit from India’s expanding economy. However, they come with higher risk and volatility, so they are best suited for long-term investors who can tolerate market fluctuations and stay invested for several years.

Quartile Ranking of all Small Cap Mutual Fund Schemes

MF Scheme	Launch Date	AUM (Crore)	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025	2026 YTD
ABSL Small Cap Gr	31-05-2007	4,882.96	Upper Mid	Upper Mid	Bottom	Bottom	Bottom	Bottom	Bottom	Lower Mid	Bottom	Upper Mid	Top
Axis Small Cap Reg Gr	05-11-2013	26,313.50	Bottom	Bottom	Top	Top	Lower Mid	Lower Mid	Upper Mid	Bottom	Lower Mid	Upper Mid	Upper Mid
Bandhan Small Cap Reg Gr	25-02-2020	20,426.64						Bottom	Bottom	Top	Top	Top	Upper Mid
Bank of India Small Cap Reg Gr	12-12-2018	1,902.86				Upper Mid	Top	Top	Lower Mid	Lower Mid	Upper Mid	Bottom	Top
Baroda BNP Paribas Small Cap Fund Reg Gr	27-10-2023	1,153.05									Lower Mid	Bottom	Top
Canara Robeco Small Cap Reg Gr	05-02-2019	12,768.65					Top	Upper Mid	Top	Bottom	Lower Mid	Lower Mid	Bottom
DSP Small Cap Reg Gr	15-06-2007	16,883.03	Top	Bottom	Bottom	Lower Mid	Upper Mid	Lower Mid	Lower Mid	Lower Mid	Upper Mid	Upper Mid	Top
Edelweiss Small Cap Reg Gr	01-02-2019	5,473.63					Top	Upper Mid	Upper Mid	Upper Mid	Lower Mid	Upper Mid	Bottom
Franklin India Small Cap Fund Gr	13-01-2006	12,934.43	Upper Mid	Lower Mid	Lower Mid	Lower Mid	Bottom	Bottom	Upper Mid	Top	Lower Mid	Bottom	Upper Mid
HDFC Small Cap Reg Gr	03-04-2008	37,416.95	Lower Mid	Upper Mid	Top	Bottom	Bottom	Upper Mid	Upper Mid	Upper Mid	Bottom	Top	Bottom
HSBC Small Cap Fund Reg Growth	12-05-2014	15,375.55	Top	Top	Upper Mid	Bottom	Bottom	Top	Lower Mid	Upper Mid	Upper Mid	Bottom	Bottom
ICICI Pru Small Cap Gr	01-10-2007	8,351.59	Lower Mid	Bottom	Bottom	Top	Lower Mid	Lower Mid	Upper Mid	Lower Mid	Bottom	Top	Lower Mid
Invesco India Small Cap Reg Gr	05-10-2018	9,702.14				Upper Mid	Lower Mid	Upper Mid	Lower Mid	Upper Mid	Top	Upper Mid	Lower Mid
ITI Small Cap Reg Gr	17-02-2020	2,712.31						Bottom	Bottom	Top	Top	Lower Mid	Upper Mid
JM Small Cap Fund Reg Gr	01-06-2024	651.84										Bottom	Bottom
Kotak -Small Cap Gr	24-02-2005	16,873.85	Upper Mid	Lower Mid	Upper Mid	Top	Upper Mid	Top	Bottom	Lower Mid	Upper Mid	Bottom	Lower Mid
LIC MF Small Cap Fund Reg Gr	15-06-2017	606.08			Upper Mid	Lower Mid	Bottom	Upper Mid	Upper Mid	Bottom	Top	Bottom	Top
Mahindra Manulife Small Cap Fund Reg Gr	05-12-2022	4,076.28								Top	Upper Mid	Upper Mid	Upper Mid
Motilal Oswal Small Cap Reg Gr	26-12-2023	5,653.08									Top	Lower Mid	Lower Mid
Nippon India Small Cap Gr Gr	05-09-2010	67,634.60	Lower Mid	Top	Upper Mid	Lower Mid	Upper Mid	Top	Top	Top	Upper Mid	Lower Mid	Upper Mid
PGIM India Small Cap Fund Reg Gr	29-07-2021	1,489.76							Bottom	Bottom	Bottom	Top	Lower Mid
Quant Small Cap Gr	24-11-1996	27,906.20	Top	Bottom	Top	Bottom	Top	Top	Top	Top	Bottom	Upper Mid	Bottom
Quantum Small Cap Fund Reg Gr	05-11-2023	189.48									Bottom	Top	Lower Mid
SBI Small Cap Reg Gr	05-09-2009	34,936.35	Bottom	Top	Lower Mid	Top	Upper Mid	Bottom	Top	Bottom	Lower Mid	Lower Mid	Lower Mid
Sundaram Small Cap Reg Gr	10-02-2005	3,305.96	Bottom	Upper Mid	Bottom	Bottom	Lower Mid	Lower Mid	Bottom	Upper Mid	Bottom	Top	Upper Mid
Tata Small Cap Reg Gr	02-11-2018	10,715.55				Upper Mid	Lower Mid	Upper Mid	Top	Bottom	Top	Bottom	Bottom
TRUSTMF SMALL CAP FUND REG GR	04-11-2024	1,378.47										Top	Top
Union Small Cap Reg Gr	10-06-2014	1,786.98	Bottom	Lower Mid	Lower Mid	Upper Mid	Upper Mid	Lower Mid	Lower Mid	Upper Mid	Lower Mid	Lower Mid	Top
UTI Small Cap Reg Gr	05-12-2020	4,546.41						Bottom	Lower Mid	Lower Mid	Upper Mid	Lower Mid	Bottom

Here’s a simple, practical 3-layer framework we used to analyze and find Top quartile rank small-cap mutual funds in India:

✅ % in Top 2 quartiles (consistency)
✅ Bottom quartile frequency (downside protection)
✅ Rolling-return behavior (practical investor experience)

📊 Step 1: % Years in Top 2 Quartiles

🥇 Nippon India Small Cap Fund
Top/Upper Mid: 7–8 / 11
👉 ~70–75% consistency (best in category)
Rarely stays down for long

🥈 Edelweiss Small Cap Fund
Top/Upper Mid: 5–6 / 7 (since 2020)
👉 ~75–80% (but shorter history)
Very steady since launch period

🥉 Kotak Small Cap Fund
Top/Upper Mid: ~7 / 11
👉 ~65% consistency

👍 Decent tier
Canara Robeco Small Cap → ~60%
HDFC Small Cap → ~55–60%

❌ Weak consistency
SBI Small Cap → ~45–50%
Axis Small Cap → ~45–50%
Franklin Small Cap → ~40–45%
Quant Small Cap → ~55% but very erratic

📉 Step 2: Downside Protection (Bottom Years)

🥇 Edelweiss Small Cap Fund
Bottom: ~1 / 7
👉 Best downside control

🥈 Nippon India Small Cap Fund
Bottom: 0–1 / 11
👉 Excellent (very rare crashes)

🥉 Kotak Small Cap Fund
Bottom: ~2 / 11
👉 Good protection

⚠️ Risky funds
Quant Small Cap → 4+ Bottom years (very volatile)
SBI Small Cap → frequent Bottom cycles
Franklin / Sundaram → repeated Bottom presence

📊 Step 3: Rolling Return Consistency (Real Experience)

🥇 Nippon India Small Cap Fund
👉 Best real-world experience
Strong across cycles
Fewer long underperformance phases
High probability of decent returns

🥈 Edelweiss Small Cap Fund
👉 Smooth recent performer
Very tight return band (post-2020)
Less volatility vs peers
But shorter track record

🥉 Kotak Small Cap Fund
👉 Balanced profile
Moderate volatility
Reasonably predictable outcomes

⚠️ High volatility (timing risk)
Quant Small Cap Fund
Extreme boom-bust cycles
👉 Rolling returns are very wide → risky entry timing

🧠 Final Combined Ranking (Most Practical)

🥇 Nippon India Small Cap Fund
✔ High consistency
✔ Strong downside protection
✔ Best rolling experience
👉 Best overall pick

🥈 Edelweiss Small Cap Fund
✔ Best downside protection
✔ Very consistent (recent years)
👉 Best “stable small cap” option

🥉 Kotak Small Cap Fund
✔ Balanced across all metrics
👉 Safe middle-ground
🎯 High risk / high return

Quant Small Cap Fund
👉 Only if you can tolerate volatility

❌ Avoid (for consistency-focused investors)
SBI Small Cap
Franklin Small Cap
Sundaram Small Cap
⚠️ Critical Insight (Small Cap Reality)

Even the best fund here:
👉 Will hit Bottom quartile multiple times
👉 Can underperform for 2–3 years continuously
👉 That’s normal for small caps (not a red flag)

If your goal is:

• Stability + high probability outcome → Nippon / Edelweiss
• Maximum return (with risk) → Quant
• Balanced → Kotak