Smallcap Funds: SIP Assets Surge Fivefold to ₹1.83 Trillion
By Market Desk
Discover how Smallcap mutual funds witnessed a fivefold surge in SIP assets, reaching ₹1.83 trillion by March 2026, driven by strong retail investor interest in India.
Smallcap funds saw their Systematic Investment Plan (SIP) assets jump fivefold over five years, hitting approximately ₹1.83 trillion by March 2026. This massive growth, driven by retail investors, outpaced other fund types in the Indian mutual fund market.
Key Smallcap Fund Numbers
- Smallcap SIP assets: ₹1.83 trillion by March 2026
- Increase: Fivefold over five years
- SIP-linked assets added by smallcap funds: ₹1.48 trillion over five years
- SIP-linked assets added by midcap funds: ₹1.45 trillion over five years (second highest)
The Association of Mutual Funds in India (Amfi) data confirms this trend. Strong retail investor interest and historically higher returns from mid and smallcap funds have fueled this significant rise.
Smallcaps Dominate SIP Holdings
SIP-linked assets now represent 55% of the total AUM (Assets Under Management – total money managed) for smallcap funds. This is the highest proportion among all equity categories, showing a clear preference.
Smallcap funds’ share in the overall SIP AUM also grew to 12.1% by March 2026, making it the third-largest category. Rushabh Desai, founder of Rupee with Rushabh Investment Services, noted this investor choice.
Desai explained that mid and smallcap funds have historically delivered superior returns compared to largecap-oriented funds over longer investment periods. This makes them especially appealing to retail investors who typically use the SIP route for regular, consistent investments.
This sustained interest highlights how retail investors are increasingly turning to smallcap funds, leveraging SIPs for potential long-term gains in the Indian market.