Bandhan Small Cap Fund: Top Performer with 26.1% 3-Year CAGR
By Market Desk
Bandhan Small Cap Fund leads its category with a 26.1% 3-year CAGR, significantly outperforming its benchmark despite liquidity challenges.
The Bandhan Small Cap Fund has demonstrated robust performance over the last three years, achieving a compound annual growth rate (CAGR) of 26.1%. This notable return positions it as a top performer within its category, according to data from August 2026.
Its performance significantly outpaced its benchmark index, which recorded a 9.1% return over the identical three-year period. The fund, managed by Manish Gunwani and Kirthi Jain, holds a substantial asset base.
Key Fund Metrics
- 3-Year CAGR (Bandhan Small Cap Fund): 26.1%
- 3-Year Benchmark Return: 9.1%
- Asset Base: ₹31,103 crore
With an asset base of approximately ₹31,103 crore, the Bandhan Small Cap Fund stands as one of the largest schemes in the small-cap segment. While this scale supports a diversified portfolio, it also introduces liquidity challenges, especially when investing in smaller, less frequently traded companies.
Despite its strong long-term track record, the fund’s leadership is not consistent across shorter durations. Recent data indicates that its performance over one or three months has lagged behind some competitors, including the Bank of India Small Cap Fund.
Risk Profile and Investor Approach
- Risk Rating: ‘very high’
- Recommended Investment Horizon: seven years or more
Small-cap funds inherently carry a ‘very high’ risk rating, making them highly susceptible to economic shifts, market volatility, and liquidity constraints. These funds often experience steeper declines during market corrections compared to large-cap stocks.
Investors considering this segment typically require an investment horizon of seven years or more to effectively navigate such inherent volatility. A comprehensive evaluation should extend beyond just the three-year return, assessing performance across both rising and falling markets.
Consistency in the fund managers’ strategy is also a critical factor for evaluation. Maintaining a disciplined, long-term investment approach remains crucial for those investing in or holding small-cap mutual funds.