Not One Small Cap Fund Rose in a Month: The Category Fell 7.38% on Average
Key Highlights
Small Cap funds: average 1-month −7.38%, 1-year 4.76%, 3-year 13.16% a year across 36 Direct Growth plans, to 22 October 2026.
Returns as of: 22 October 2026
- Category average return: 1 month −7.38%, 1 year 4.76%, 3 years 13.16% a year
- Every fund fell over the past month
- Most funds had a positive return over one year
- 14% of 1-year rolling windows ended below zero
- Average expense ratio of Direct plans: 0.94%
- Largest fund by assets: Nippon India Small Cap Fund
Small Cap funds performance: the category averaged a return of −7.38% over the month. Every fund fell over the month. The category averaged a return of 4.76% over the one-year period. Most of the 31 funds had a positive return over one year.
Small Cap funds: returns across the category
| Period | Average | Median | Funds with a positive return | Funds counted |
|---|---|---|---|---|
| 1 week | −3.98% | −3.99% | 0 of 36 | 36 |
| 1 month | −7.38% | −7.41% | 0 of 36 | 36 |
| 3 months | −2.98% | −3.32% | 3 of 36 | 36 |
| 6 months | 5.62% | 5.41% | 33 of 36 | 36 |
| 1 year | 4.76% | 4.59% | 24 of 31 | 31 |
| 3 years (a year) | 13.16% | 12.53% | 24 of 24 | 24 |
| 5 years (a year) | 14.60% | 14.49% | 23 of 23 | 23 |
The 1-year average of 4.76% is lower than the 3-year average of 13.16%. These annualised figures represent the performance of the 36 active Direct Growth plans. The 3-year average is positive.
Highest and lowest returns over the past month
| Fund | 1 month | 1 week |
|---|---|---|
| Bandhan Small Cap Fund | −5.32% | −3.42% |
| Bank of India Small Cap Fund | −5.50% | −4.82% |
| Quant Small Cap Fund | −5.85% | −2.86% |
| Fund | 1 month | 1 week |
|---|---|---|
| Tata Small Cap Fund | −9.34% | −5.07% |
| HSBC Small Cap Fund | −9.17% | −4.86% |
| JM Small Cap Fund | −8.58% | −5.28% |
Highest 3-year returns
| Fund | 1 year | 3 years (a year) | Expense ratio |
|---|---|---|---|
| Bandhan Small Cap Fund | 5.19% | 21.31% | 0.61% |
| ITI Small Cap Fund | 10.34% | 20.19% | 0.86% |
| Invesco India Smallcap Fund | 5.58% | 19.19% | 0.63% |
| Bank of India Small Cap Fund | 20.26% | 18.38% | 0.73% |
| Mahindra Manulife Small Cap Fund | 7.81% | 16.73% | 0.92% |
Rolling returns
| Measure | Category average 1-year return |
|---|---|
| Lowest window | −8.7% (ending 10 December 2025) |
| Median | 11.9% |
| Highest window | 55.0% (ending 26 April 2024) |
| Share of windows below zero | 14% |
| Latest window (ending 22 October 2026) | 3.7% |
Rolling 1-year returns show a lowest window of −8.7% and a median of 11.9%. The highest window reached 55.0%. The latest rolling window of 3.7% is lower than the median rolling window.
Largest funds and costs
| Fund | Assets (₹ crore) | 1 year | 3 years (a year) |
|---|---|---|---|
| Nippon India Small Cap Fund | 80,906 | 1.59% | 12.23% |
| SBI Small Cap Fund | 41,059 | 0.08% | 8.92% |
| HDFC Small Cap Fund | 40,801 | −7.10% | 8.24% |
| Bandhan Small Cap Fund | 35,856 | 5.19% | 21.31% |
| Quant Small Cap Fund | 35,572 | 6.22% | 15.68% |
| Expense ratio | Funds counted | |
|---|---|---|
| Average | 0.94% | 36 |
| Lowest: Abakkus Small Cap Fund | 0.49% | |
| Highest: The Wealth Company Small Cap Fund | 2.05% |
Small Cap funds: FAQs
How have Small Cap funds performed over the past year?
The average 1-year return of 31 Direct Growth Small Cap funds was 4.76% to 22 October 2026; most funds had a positive return. The average 3-year return was 13.16% a year across 24 funds.
What is the average expense ratio of Small Cap funds?
The average expense ratio of 36 Direct plans in the Small Cap category is 0.94%. It ranges from 0.49% (Abakkus Small Cap Fund) to 2.05% (The Wealth Company Small Cap Fund).
Which Small Cap fund is the largest?
Nippon India Small Cap Fund has the largest assets among Small Cap funds, ₹80,906 crore at 30 September 2026, across all its plans.
What are rolling returns?
Rolling returns measure the return over every window of a fixed length, not just the one ending today. Here, each 1-year window ending between 23 October 2023 and 22 October 2026 is averaged across 23 funds, so the result does not depend on one start date.
Why are Direct plans compared?
Direct plans have no distributor commission in their cost, so they are the cleanest way to compare the funds themselves. Regular plans of the same funds charge a higher expense ratio, which reduces their returns.
, expense and portfolio data: Accord Fintech. Calculations: ThePip. For information only; not investment advice.