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  5. Small-cap funds 1, 3 & 5-year returns: HDFC, Invesco, Nippon, ICICI Pru, Axis & Kotak MF compared

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Small-cap funds 1, 3 & 5-year returns: HDFC, Invesco, Nippon, ICICI Pru, Axis & Kotak MF compared

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By Sangeeta Ojha

4 min read | Updated on January 10, 2026, 09:48 IST

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SUMMARY

Small-cap mutual fund performance comparison of HDFC, Invesco, Nippon, Axis, ICICI Pru, Kotak and Nippon India, analysing 1-year, 3-year and 5-year returns versus benchmarks and key portfolio holdings.

small cap mutual fund returns compared

Short-term volatility has affected most small-cap funds over the past year. | Image: Shutterstock

Indian small-cap funds have shown mixed performance over the past year, with long-term returns continuing to reward patient investors, even as short-term volatility persisted.

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Before reading further, please note that this exercise is for informational purposes only. It is not intended to recommend any of these schemes for investment.

HDFC Small Cap Fund-Reg(G)

HDFC Small Cap Fund-Reg(G), managed by Chirag Setalvad, has an AUM of ₹37,753 crore as of December 31, 2025. The fund, launched in April 2008, holds top positions in Firstsource Solutions (4.92%), eClerx Services (3.91%), and Aster DM Healthcare (3.91%).

It delivered a marginally negative 1-year return of -0.58%, but its 3- and 5-year annualised returns stand at 19.79% and 23.36%, respectively, outperforming its benchmark, BSE 250 Small Cap – TRI, over the medium to long term.

Axis Small Cap Fund-Reg(G)

Axis Small Cap Fund-Reg(G), with an AUM of ₹26,769 crore, posted a 1-year loss of -2.02% but has generated healthy 3-year and 5-year annualised returns of 17.93% and 20.43%, respectively.

Top holdings include Krishna Institute of Medical Sciences (2.72%), CCL Products (2.60%), and Multi Commodity Exchange (2.49%).

ICICI Prudential Smallcap Fund(G)

ICICI Prudential Smallcap Fund(G), managed by Anish Tawakley, has an AUM of ₹8,427 crore and recorded a near-flat 1-year performance at -0.01%, with 5-year returns of 20.57%.

Its portfolio features HDFC Bank (4.78%), Gujarat Pipavav Port (2.67%), and Jamna Auto Industries (2.56%).

Invesco India Smallcap Fund-Reg(G)

Among newer funds, Invesco India Smallcap Fund-Reg(G), with an AUM of ₹8,999 crore, has delivered strong medium- and long-term performance, clocking 23.93% over 3 years and 24.31% over 5 years, despite a 1-year dip of -2.34%. Its top bets include Sai Life Sciences (4.86%), Krishna Institute of Medical Sciences (4.81%), and Swiggy (4.34%).

Kotak Small Cap Fund(G)

Kotak Small Cap Fund(G), launched in 2005 and managed by Harish Bihani, faced a sharp 1-year decline of -9.71%, although its 5-year returns remain respectable at 18.84%. Key holdings include Aster DM Healthcare (4.49%) and Krishna Institute of Medical Sciences (3.32%).

Nippon India Small Cap Fund(G)

Nippon India Small Cap Fund(G), the largest in the category with an AUM of ₹68,287 crore, posted a 1-year fall of -4.49%, but continues to lead in long-term performance with 25.62% over 5 years and 20.03% since inception. Top exposures include Multi Commodity Exchange (3.02%), HDFC Bank (1.93%), and SBI (1.49%).
Scheme NameFund ManagerLaunch DateBenchmarkAUM (Rs Cr)1-Year (%)3-Year (%)5-Year (%)Since Inception (%)
HDFC Small Cap Fund-Reg(G)Chirag Setalvad03-Apr-2008BSE 250 Small Cap - TRI37,753.13-0.5819.7923.3615.87
Axis Small Cap Fund-Reg(G)Tejas Sheth29-Nov-2013Nifty Smallcap 250 - TRI26,769.08-2.0217.9320.4321.30
ICICI Pru Smallcap Fund(G)Anish Tawakley18-Oct-2007Nifty Smallcap 250 - TRI8,427.64-0.0116.5020.5712.45
Invesco India Smallcap Fund-Reg(G)Taher Badshah30-Oct-2018BSE 250 Small Cap - TRI8,999.33-2.3423.9324.3121.79
Kotak Small Cap Fund(G)Harish Bihani24-Feb-2005Nifty Smallcap 250 - TRI17,423.09-9.7115.0218.8416.59
Nippon India Small Cap Fund(G)Samir Rachh16-Sep-2010Nifty Smallcap 250 - TRI68,287.15-4.4920.9725.6220.03

Key Takeaways:

  • Short-term volatility has affected most small-cap funds over the past year, with Kotak and Nippon seeing sharper declines.

  • Long-term performance remains robust, with Nippon, Invesco, and HDFC funds leading 5-year returns.

  • Healthcare and financial services are dominant sectors across portfolios, with Krishna Institute of Medical Sciences featuring prominently in multiple funds.

Meanwhile, equity mutual funds attracted Rs 28,054 crore in December, according to data released by industry body Amfi on Friday.

Most equity sub-categories continued to see positive traction in December. Flexi-cap funds emerged as the top performer followed by mid-cap funds, large & mid-cap funds and small-cap funds.

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Disclaimer: The information contained in this article is for informational purposes only and does not represent investment advice from Upstox. Investment decisions should be made based on independent research or consultation with a registered financial advisor. Past performance is not indicative of future results.
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About The Author

sangeeta-ojha.webp
Sangeeta Ojha is a business and finance journalist with vast experience across leading media platforms, including Mint and India Today. Passionate about personal finance, she has built a reputation for covering a wide range of PF topics—from income tax and mutual funds to insurance, savings, and investing.

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