If You are looking for best small cap mutual funds for long term investment in 2025 Then , You are in right place . When you want to grow your wealth for long term , Then , Small Cap Mutual Funds are best choice . But, Today , there are many mutual fund available in the market . Choose best Small cap Mutual Funds for long term investment from them is very critical . A Wrong choice can give you negative returns . So , In this blog , i will discuss about the Best Small Cap Mutual Funds For Long Term Investment . So, After reading this blog , You can easily decide which funds is best for your wealth .
What Is Small Cap Mutual Fund ?
Small-Cap Mutual Funds are a type of equity fund that invests in small companies listed on the stock market with a market capitalization of less than ₹5,000 crores. These funds can deliver strong returns over the long term, but they come with very high risk.
There is little chance of gaining significant wealth from best small cap mutual funds in the short term. Therefore, if you choose to invest in them, you must think long-term.
Benefits of Best Small Cap Mutual Funds
- Good Return for Long Term Investment .
- Lot of Growth in this type of small cap Companies .
Disadvantages of Best Small Cap Mutual Funds
- high-risk, high-reward investment option.
- Take more time to grow .
Factors Considered for Choose Best Small Cap Mutual Fund For Long Term in 2025
- Historical Return Data .
- Fund Manager Experience
- Trust Of Brand Name In Public
- Fund’s Expense Ratio, exit Load & Tax
- Rating of Mutual Funds
- Size Of Fund
Best Small Cap Mutual Funds For Long Term Investment In 2025
Bandhan Small Cap Fund Direct Growth
- Fund Size: ₹11,743 crore
- Returns (Past Performance):
- 38.99% (5-year average)
- 37.96% (3-year average)
- 35.86% (Since inception)
- Launch Year: 2020 (Initial NAV: ₹10)
- Current NAV: ₹50.88
- Minimum SIP: ₹100/month
- Lump-Sum Investment: Allowed
- Rating: ★★★★★ (5-star)
- Benchmark: BSE 250 Small Cap TRI (Total Return Index)
- Fund Manager: Experienced professional
- Ranking: Among India’s top 10 mutual fund houses
- Exit Load :of 1% if Redeemed Within 1 Year
- Expense Ratio : 0.38%
- TAX : Returns are Taxed at 20%, if You Redeem Before 1 Year. After 1 Year, You Are Required to Pay LTCG Tax of 12.5% On Returns of ₹ 1.25 Lakh + in a Financial Year.
| Number | Company | Holding ( % ) |
|---|---|---|
| 1. | Sobha Ltd | 3.14 % |
| 2. | LT Foods Ltd | 2.52% |
| 3. | The South Indian Bank Ltd | 2.38% |
| 4. | Cholamandalam Financial Holdings Ltd | 2.04% |
| 5. | PCBL Ltd | 1.81% |
| 6. | Arvind Ltd | 1.61% |
| 7. | Power Finance Corp Limited | 1.37% |
| 8. | Apar Industries Limited | 1.68% |
| 9. | REC Limited | 1.68% |
| 10. | TVS Holdings Limited | 1.21% |
Quant Small Cap Fund
- Fund Size : ₹28,205 Cr
- Returns (Past Performance):
- 47.38% (5-year average)
- 32.68% (3-year average)
- 18.28% (Since inception)
- Launch Year: 2013 (Initial NAV: ₹34)
- Current NAV: ₹275
- Minimum SIP: ₹1000/month
- Lump-Sum Investment: Allowed
- Rating: ★★★★ (4-star)
- Benchmark: Nifty 250 Small Cap (Total Return Index)
- Fund Manager: Experienced professional
- Ranking: Top 10 In Category Ranking
- Exit Load :of 1% if Redeemed Within 1 Year
- Expense Ratio : 0.66%
- TAX : Returns are Taxed at 20%, if You Redeem Before 1 Year. After 1 Year, You Are Required to Pay LTCG Tax of 12.5% On Returns of ₹ 1.25 Lakh + in a Financial Year.
| Number | Company | Holding ( % ) |
|---|---|---|
| 1. | Reliance Industries | 9.85% |
| 2. | Jio Financial Services | 5.69% |
| 3. | Aegis Logistics | 3.72% |
| 4. | Bikaji International Foods Limited | 3.05% |
| 5. | RBL Bank | 2.86% |
| 6. | Poly Medicure Limited | 2.56% |
| 7. | HFCL Limited | 2.35% |
| 8. | SUN TV Network Limited | 2.30% |
| 9. | Ventive Hospitality Limited | 2.29% |
| 10. | Adani Enterprises Limited | 2.21% |
Nippon India Small Cap Fund
- Fund Size : ₹63.006 Cr
- Returns (Past Performance):
- 39.90% (5-year average)
- 31.63% (3-year average)
- 25.61% (Since inception)
- Launch Year: 2013 (Initial NAV: ₹11)
- Current NAV: ₹188
- Minimum SIP: ₹100/month
- Lump-Sum Investment: Not Allowed
- Rating: ★★★★ (4-star)
- Benchmark: Nifty 250 Small Cap (Total Return Index)
- Fund Manager: Experienced professional
- Ranking: Top 10 In Category Ranking
- Exit Load :of 1% if Redeemed Within 1 Year
- Expense Ratio : 0.65%
- TAX : Returns are Taxed at 20%, if You Redeem Before 1 Year. After 1 Year, You Are Required to Pay LTCG Tax of 12.5% On Returns of ₹ 1.25 Lakh + in a Financial Year.
| Number | Company | Holding ( % ) |
|---|---|---|
| 1. | HDFC Bank Limited | 2.05% |
| 2. | Multi Comodity Exchange Limited of India | 1.94% |
| 3. | Kirloskars Brothers Limited | 1.29% |
| 4. | Tube Investment Of India Limited | 1.21% |
| 5. | State Bank Of India | 1.17% |
| 6. | Apar Industries Limited | 1.16% |
| 7. | Bharat Heavy Electricals Limited | 1.13% |
| 8. | Karur Vysya Bank Limited | 1.12% |
| 9. | Pfizer Limited | 1.07% |
| 10. | Paradeep Phosphates Limited | 1.07% |
Tata Small Cap Fund
- Fund Size : ₹10529Cr
- Returns (Past Performance):
- 29.92% (5-year average)
- 36.58% (3-year average)
- 25.57% (Since inception)
- Launch Year: 2022 (Initial NAV: ₹20.34)
- Current NAV: ₹44.92
- Minimum SIP: ₹100/month
- Lump-Sum Investment: Not Allowed
- Rating: ★★★★ (4-star)
- Benchmark: Nifty 250 Small Cap (Total Return Index)
- Fund Manager: Experienced professional
- Ranking: Top 10 In Category Ranking
- Exit Load :of 1% if Redeemed Within 1 Year
- Expense Ratio : 0.33%
- TAX : Returns are Taxed at 20%, if You Redeem Before 1 Year. After 1 Year, You Are Required to Pay LTCG Tax of 12.5% On Returns of ₹ 1.25 Lakh + in a Financial Year.
| Number | Company | Holding ( % ) |
|---|---|---|
| 1. | Sudarshan Chemical Industries Limited | 5.26% |
| 2. | BASF India Limited | 3.78% |
| 3. | Kirloskar Pneumatic Limited | 3.68% |
| 4. | IDFC First Bank Limited | 3.22% |
| 5. | Godrej Industries Limited | 3.13% |
| 6. | Sundaram Clayton Dcd Limited | 2.70% |
| 7. | Wockhardt Limited | 2.68% |
| 8. | Wonderla Holidays Limited | 2.64% |
| 9. | Usha Martin Limited | 2.62% |
| 10. | Time Technoplast Limited | 2.55% |
SBI Small Cap Fund
- Fund Size : ₹34028Cr
- Returns (Past Performance):
- 30.77% (5-year average)
- 22.43% (3-year average)
- 24.34% (Since inception)
- Launch Year: 2013 (Initial NAV: ₹13.34)
- Current NAV: ₹194.31
- Minimum SIP: ₹500/month
- Lump-Sum Investment: Not Allowed
- Rating: ★★★ (3-star)
- Benchmark: BSE 250 Small Cap (Total Return Index)
- Fund Manager: Experienced professional
- Ranking: Top 10 In Category Ranking
- Exit Load :of 1% if Redeemed Within 1 Year
- Expense Ratio : 0.71%
- TAX : Returns are Taxed at 20%, if You Redeem Before 1 Year. After 1 Year, You Are Required to Pay LTCG Tax of 12.5% On Returns of ₹ 1.25 Lakh + in a Financial Year.
| Number | Company | Holding ( % ) |
|---|---|---|
| 1. | Nifty Bank | 3.46% |
| 2. | SBFC Finance Limited | 2.96% |
| 3. | Kalpataru Projects International Limited | 2.64% |
| 4. | Chalet Hotels Limited | 2.62% |
| 5. | E.I.D Parry Limited | 2.60% |
| 6. | K.P.R mill Limited | 2.55% |
| 7. | Krishna Institute Of Medical Science | 2.48% |
| 8. | City Union Bank Limited | 2.40% |
| 9. | DOMS Industries Limited | 2.37% |
| 10. | Deepak Fertilizers And Petrochemicals Corporations | 2.29% |
Best Small Cap Mutual Fund for Long Term Investment in 2025 FAQS
1. Which small cap fund is best in 2025 ?
ANS: Nippon India Small Cap Fund is Best Small Cap Mutual Fund For Long Term Investment in 2025
2. What are the best funds to invest in 2025 ?
ANS: Invesco India PSU Equity Fund is Best Mutual Fund For Long Term Investment in 2025.