Top Smallcap Funds: 5 Funds Beat 20% Returns in 3 Years

Looking to invest in smallcap mutual funds? Five schemes have delivered over 20% annualised returns in the last three years, according to ET Wealth data as of August 19, 2026.

These top performers showed impressive growth, and it’s helpful to see how they stacked up.

The top performer was the Bandhan Small Cap Fund, achieving an impressive 25.1% annualised return.

Close behind, the ITI Small Cap Fund reported 24.7%, while the Invesco India Smallcap Fund reached 23%.

You also saw strong performance from the Bank of India Small Cap Fund at 22.3%, and the Mahindra Manulife Small Cap Fund, which returned 20.3%.

Not all smallcap funds performed at this level. Several others, like the Tata Small Cap Fund, HDFC Small Cap Fund, SBI Small Cap Fund, ICICI Prudential Smallcap Fund, and Kotak Small Cap Fund, showed returns between 11.7% and 12.8% over the same three-year period.

More Than Just Numbers

While these numbers are interesting, remember that past performance doesn’t guarantee future results. When choosing smallcap funds, you need to look beyond just the returns.

Instead, consider your individual risk appetite and how much fluctuation you’re comfortable with.

Think about your investment horizon; how long do you plan to keep your money invested?

Finally, align your choice with your specific financial objectives, ensuring the fund fits your personal goals.

Making informed decisions based on your own financial situation, rather than just historical data, is key to smart smallcap investing.