Top Small Cap Funds That Turned a Rs 1,000 Monthly SIP Into Over Rs 1 Lakh in 5 Years
DSIJ Intelligence / 20 Jun 2026 / Categories: Mindshare, Mutual Fund, Trending
A disciplined Rs 1,000 monthly SIP in some of India's best-performing small cap funds could have grown beyond Rs 1 lakh in just five years.
India's Mutual Fund industry has become an important pillar of household investing, helping millions of investors participate in the country's growth story. Rising financial awareness, greater access to digital investment platforms and a growing preference for market-linked products have encouraged more individuals to move beyond traditional savings options.
Retail Participation Continues To Rise
The total number of accounts, or folios in mutual fund terminology, stood at 27.66 crore (276.6 million) as on May 31, 2026. Meanwhile, the number of folios under equity, hybrid and solution-oriented schemes, where retail investors account for the majority of investments, reached about 21.10 crore (211.0 million).
Another notable trend has been the continued rise in systematic investment plans (SIPs). Monthly SIP inflows have been touching record levels.
Why Small Cap Funds Are Attracting Investors
Among the various mutual fund categories, small cap funds have emerged as one of the favourites among Indian investors. These funds invest primarily in smaller listed companies that are often at an early stage of their growth journey.
While small cap funds are generally considered riskier than Large-Cap and flexi cap funds due to higher volatility, they also offer the potential for superior returns over the long term. Investors willing to tolerate short-term fluctuations often view the category as an opportunity to participate in the next generation of high-growth businesses.
What A Rs 1,000 Monthly SIP Delivered
A comparison of leading small cap funds demonstrates the wealth-creation potential of disciplined investing through SIPs. Assuming a monthly SIP of Rs 1,000 for five years, an investor would have contributed a total of Rs 60,000.
Top Performing Small Cap Funds In 2026: A Five-Year SIP Comparison
|
Scheme Name |
AUM (Rs crore) |
Expense Ratio (%) |
Amount Invested (Rs) |
Current Value (Rs) |
Annualised Return (%) |
|
Bandhan Small Cap Fund Regular Growth |
27,172.99 |
1.59 |
60,000 |
1,00,130 |
21.21 |
|
Invesco India Small Cap Fund Regular Growth |
11,700.80 |
1.73 |
60,000 |
97,150 |
19.93 |
|
ITI Small Cap Fund Regular Growth |
3,057.66 |
1.92 |
60,000 |
96,737 |
19.75 |
|
Bank of India Small Cap Fund Regular Growth |
2,313.66 |
2.04 |
60,000 |
95,154 |
19.05 |
|
Quant Small Cap Fund Regular Growth |
31,913.65 |
1.58 |
60,000 |
91,827 |
17.56 |
Disclaimer: The article is for informational purposes only and not investment advice.