6 small-cap funds generate over 25% returns in 6 months. How have they performed since inception?

Even as the small-cap segment has witnessed strong volatility since last year, several small-cap schemes have delivered strong returns during this period, enabling significant long-term wealth for investors. Data on July 24, 2026, shows that as many as six small-cap funds have delivered over 25% returns over the six months.

As investors continue to take interest in small-cap funds despite valuation concerns in the past, this article takes a closer look at these six schemes and examines how they have performed since their respective launch dates.

Before reading further, please note this article is based on data from ACE MF and is intended for educational and informational purposes. It should not be construed as a recommendation to invest in any of the schemes mentioned.

6 small-cap funds at a glance

Bank of India Small Cap Fund

The direct plan of this scheme has delivered 33.41% return in six months ending July 23, 2026. Launched on December 19, 2018, the scheme delivered annualised returns of 22.42% over three years, 19.66% over five years and 27.06% since inception. In the near-term, the scheme delivered a 13.36% return in three months.

In June, the scheme added four stocks: Jas Engineering, JK Cements, Tata Technologies, Turtlemint Fintech Solutions. And it sold 2 stocks: Rane Holdings and Tata Elxi. However, there was no change in the remaining 76 stocks in the Bank of India Small Cap Fund portfolio.

TrustMF Small Cap Fund

The direct plan of this scheme has delivered 30.15% return in six months ending July 23, 2026. Launched on November 4, 2024, the scheme delivered 23.98% over one year and 16.95% since inception. In the near-term, the scheme delivered a 14.84% return in three months.

In June, the scheme added 14 stocks: Aeroflex, Anand Rathi Wealth, Bharat Dynamics, CDSL, CAMS, Data Patterns, Dixon Tech, Gabriel India, Granules India, Le Travenues Technology, Paras Defence and Space tenologies, Physicswallah, Thangamayil Jewellery, and Zen Technology. And it sold 13 stocks: BSE, eClerx Services, Healthcare Global Enterprises, Hiindustan opper, JB Chemicals & Pharmaceuticals, Lumax Auto Technologies, Onesource Specialty Pharma, Persistent Systems, Prudent Corporate Advisory, PTC Industries, Sagility, Sharda Cropchem, V2 Retail. However, there was no change in the remaining 66 stocks in the TrustMF Small Cap Fund portfolio.

Motilal Oswal Small Cap Fund

The direct plan of this scheme has delivered 29.02% return in six months ending July 23, 2026. Launched on December 26, 2023, the scheme delivered 15.47% over one year and 22.40% since inception. In the near-term, the scheme delivered a 14.86% return in three months.

With an AUM of ₹7179 crore, the small-cap scheme held 58 stocks across 25 sectors as of June 30, 2026.

In June, the scheme added three stocks: Meesho, Schneider Electric Infrastructure, Shadofax Technologies. And it sold two stocks:NTPC and Solar Industries India. However, there was no change in the remaining 55 stocks in the TrustMF Small Cap Fund portfolio.

JM Small Cap Fund

The direct plan of this scheme has delivered 28.18% return in six months ending July 23, 2026. Launched on June 18, 2024, the scheme delivered 11.17% over one year and 7.30% since inception. In the near-term, the scheme delivered a 16.89% return in three months.

With an AUM of ₹809 crore, the small-cap scheme held 75 stocks across 25 sectors as of June 30, 2026.

In June, the scheme added six stocks: Goodluck India, Inox India, KSB Ltd, Manorama Industries, Ola Electric Mobility and PSP Projects. And it sold three stocks: ICRA, RailTel Corporation of India and ZF Commercial Vehicle Control Systems India. However, there was no change in the remaining 69 stocks in the JM Small Cap Fund.

Union Small Cap Fund

The direct plan of this scheme has delivered 26.60% return in six months ending July 23, 2026. Launched on June 10, 2014, the scheme delivered 15.82% over one year, 18.91% over three years, 17.09% over five years and 16.45% since inception. In the near-term, the scheme delivered a 9.92% return in three months.

With an AUM of ₹2267 crore, the small-cap scheme held 77 stocks across 23 sectors as of June 30, 2026.

In June, the scheme added nine stocks: Angel One, Cemindia, Honasa Consumer, Inox India, KSH International, Lumax Auto Technologies, RBL Bank, Symra SGS Technology, Venus Pipes & Tubes. And it sold two stocks: Motherson Sumi Wiring India and Schneider Electric Infrastructure. However, there was no change in the remaining 68 stocks in the Union Small Cap Fund portfolio.

ITI Small Cap Fund

The direct plan of this scheme has delivered 25.15% return in six months ending July 23, 2026. Launched on February 17, 2020, the scheme delivered 11.52% over one year, 25.47% over three years, 17.21% over five years and 22.14% since inception. In the near-term, the scheme delivered a 13.42% return in three months.

With an AUM of ₹3321 crore, the small-cap scheme held 79 stocks across 26 sectors as of June 30, 2026.

In June, the scheme added three stocks: Bharat Coking Coal, Hitachi Energy India, Inox India. And it sold six stocks: Jain Resource Recycling, Techno Electric & Engineering Company, Vedanta Iron and Steel, Vedanta, Vedanta Oil and Gas, Vedanta Power. However, there was no change in the remaining 76 stocks in the ITI Small Cap Fund portfolio.