Top Small-Cap Funds by 10-Year SIP Returns: Quant Leads at 24.98% — What the Ranking Does and Doesn't Tell You
Mutual funds · Small-cap · November 2026
Top Small-Cap Funds by 10-Year SIP Returns: Quant Leads at 24.98% — What the Ranking Does and Doesn’t Tell You
Value Research data shows Quant Small Cap Fund ahead of Nippon India, SBI and HDFC on 10-year SIP returns, with an 8-point gap between first and last among the biggest schemes.
- 221.13%Nippon India Small Cap
- 124.98%Quant Small Cap
- 319.82%Union Small Cap
Two investors start a ₹10,000 monthly SIP in small-cap funds on the same day ten years ago. Both stay disciplined, never miss an instalment, never panic. Today one has about ₹45 lakh and the other about ₹29 lakh. The difference is not effort or timing; it is fund choice. That is the story behind the latest small-cap ranking, which puts Quant Small Cap Fund at the top with a 24.98% annualised 10-year SIP return. But before anyone redirects their SIP, the number needs careful reading, because it says a great deal about the past decade and much less about the next one.
The full leaderboard, from first to thirteenth
Mint, citing Value Research, listed 13 small-cap funds with at least a ten-year record and ranked them by annualised SIP return. 5paisa’s analysis of the same data, published on 9 November, noted that six of the 13 cleared 18% and that the five largest schemes did not rank in order of size.
Annualised SIP return (XIRR), direct plans. Source: Value Research data reported by Mint and 5paisa, 8 to 9 November 2026. Bar length relative to the top fund.
Even the last fund on the list returned more than 15% a year on its SIPs. Mint described small-cap funds as the best-performing equity category over the decade. The question for investors is less “did small caps work?” and more “which fund, and how much of my money?”
SIP return is not the same as fund return
The headline 24.98% is an XIRR: the annualised return on a series of monthly SIP instalments, each invested at a different price. It is not the fund’s 10-year lump-sum return (CAGR), which measures a single investment made on day one. The two can differ significantly, and many readers mix them up when comparing funds across websites.
- SIP XIRRWhat this ranking usesReturn on regular monthly instalments over 120 months. Recent years weigh heavily, because later instalments make up much of the money invested and have had less time to grow.
- Lump-sum CAGRWhat fact sheets often show firstReturn on one investment held for the whole decade. Early years matter more. A fund can lead on one measure and trail on the other.
The end date moves the number
The same leaderboard looked different six weeks earlier. A Value Research study reported by 5paisa with data to 25 September 2026 put Quant Small Cap’s 10-year SIP return at 25.64%, Nippon India’s at 22.12% and Union’s at 20.78%. A few weeks of market movement shaved more than half a point off each. Point-in-time rankings are snapshots, not permanent scores.
What people get wrong: comparing a fund’s 10-year SIP XIRR on one website with another fund’s lump-sum CAGR on another, or comparing figures with different end dates. Always compare the same measure, the same plan (direct or regular) and the same date.
What ₹10,000 a month actually became
To make the percentages concrete, we converted each fund’s 10-year SIP return into the approximate value of a ₹10,000 monthly SIP. Total money invested over 120 months is ₹12 lakh in every case.
₹ lakh. Our calculation from each fund’s reported 10-year SIP XIRR, assuming instalments at the start of each month; actual values depend on exact dates and NAVs. Total invested: ₹12 lakh.
Worked example: the cost of an 8-point gap. A ₹10,000 SIP at Quant’s 24.98% grows to about ₹45.1 lakh; at HDFC Small Cap’s 16.99% it grows to about ₹29.3 lakh. Same discipline, same ₹12 lakh invested, a difference of roughly ₹15.8 lakh. Our calculation.
Yet even the HDFC investor turned ₹12 lakh into almost 2.5 times the money. The biggest single decision was staying invested in small caps for ten years. Fund selection added or subtracted from that, but the investor who stopped after the 2018 or 2020 falls missed most of the gain regardless of which fund they held.
Big funds, different results: size versus returns
The five largest small-cap schemes manage well over ₹2 lakh crore between them, yet their returns spread from 24.98% to 16.99%. 5paisa noted that AUM and returns among these five follow no consistent order.
₹ crore, as reported by Mint citing Value Research, November 2026. AUM not reported for Sundaram, ICICI Prudential, Franklin and ABSL.
Why fund size matters more in small caps
Small companies have limited shares trading each day. A very large fund may struggle to build or exit positions without moving prices, and may end up holding more stocks, which can dilute returns. A small fund like Union Small Cap, with ₹2,732 crore, has the opposite problem: less scrutiny and a shorter list of reviewers tracking it. Neither size guarantees anything, but size is one reason a past ranking may not carry forward.
Quant’s record comes with context
Quant Small Cap was a far smaller fund for much of this ten-year window and grew rapidly after its strong run. The fund house follows an active, high-turnover style that can make returns swing more than peers’. In June 2024, SEBI carried out a search at Quant Mutual Fund’s offices as part of an investigation into suspected front-running, and the fund house said it would cooperate with the regulator. Investors considering any fund should weigh process, consistency and governance alongside headline returns.
The past year shows the other side of small caps
Small caps are volatile. 5paisa data for the year to 2 November 2026 shows the Nifty Smallcap 250 TRI down 1.28%, while the Nifty 50 fell 7.88%. Small caps held up better than large caps this year, but that is not always the case: in sharp sell-offs they usually fall harder and take longer to recover.
Per cent, point to point. Source: 5paisa, updated 5 November 2026. Fund figures are selected top performers, not category averages.
Note that none of the one-year leaders is among the top five on 10-year SIP returns, except Union Small Cap. Short-term and long-term rankings regularly diverge, which is why one-year tables are a poor basis for choosing a fund.
- 13Small-cap funds with a 10-year record in the ranking
- 15.56%Lowest 10-year SIP return in the list (ABSL)
- 65%Minimum share a small-cap fund must hold in small companies, per SEBI
- 251stRank by market value at which a company counts as small-cap
- ₹9,039 crNet inflows into small-cap funds, September 2026, AMFI
- -1.28%Nifty Smallcap 250 TRI, one year to 2 Nov 2026
How to compare small-cap funds properly
| Fund | 10-yr SIP XIRR | AUM (₹ cr) | ₹10,000 SIP value (approx.) | Point to check |
|---|---|---|---|---|
| Quant Small Cap | 24.98% | 35,572 | ₹45.1 lakh | High turnover; much growth came at smaller size |
| Nippon India Small Cap | 21.13% | 80,906 | ₹36.6 lakh | Largest fund; check liquidity disclosures |
| Union Small Cap | 19.82% | 2,732 | ₹34.1 lakh | Small fund; check consistency over time |
| Axis Small Cap | 19.78% | 30,678 | ₹34.0 lakh | Compare rolling returns |
| SBI Small Cap | 17.24% | 41,059 | ₹29.7 lakh | Check downside capture in falls |
| HDFC Small Cap | 16.99% | 40,801 | ₹29.3 lakh | Check expense ratio and portfolio spread |
SIP values are our calculation from the reported returns. Beyond this table, look at rolling returns, how much a fund fell in past sell-offs, expense ratios and the fund manager’s tenure. Since 2024, AMFI-member fund houses have published monthly stress-test results for small and mid-cap funds, showing roughly how many days it would take to sell part of the portfolio. These are on each fund house’s website.
A sensible size for your small-cap slice
Many financial planners suggest limiting small-cap funds to roughly 10% to 25% of equity holdings, depending on age and risk appetite, and holding them for at least seven to ten years. That is a rule of thumb, not a regulation. Investors who need money within five years generally should not rely on small caps.
Moments that shaped this decade of small caps
- SEBI defines small caps as companies ranked 251st and below, and sets the 65% minimum
- Small caps go through a long, deep correction, testing SIP investors
- Fund houses begin publishing stress-test results for small and mid-cap funds
- SEBI search at Quant Mutual Fund in a front-running investigation
- Small-cap funds receive ₹9,039 crore in net inflows
- Quant’s 10-year SIP return at 25.64%, per earlier study
- Smallcap 250 TRI down 1.28% over one year
- Ranking puts Quant at 24.98%, HDFC at 16.99%
Before you redirect your SIP
- Holding horizon of at least 7 to 10 years
- Small caps under about 10% to 25% of your equity
- Same measure compared: SIP XIRR or CAGR, not both
- Direct plan figures compared with direct plan figures
- Rolling returns over 3 and 5 years reviewed
- Fall in the worst year checked, not just the best
- Stress-test days to liquidate read from the fund’s monthly disclosure
- Exit load, often within 1 year, checked before switching
- Switch tax: 20% short-term, 12.5% long-term above ₹1.25 lakh
- Annual review rather than chasing each new ranking
If you already hold a lower-ranked fund: a 10-year SIP return of 17% is still strong. Switching means selling, which can trigger capital gains tax and exit loads. Consider redirecting future SIPs rather than selling existing units, and only if the fund has lagged its benchmark and peers for two to three years.
Small-cap fund questions investors are asking
Which small-cap fund gave the highest 10-year SIP returns?
Quant Small Cap Fund, with a 24.98% annualised 10-year SIP return for the direct plan, according to Value Research data reported on 8 November 2026. Nippon India Small Cap was second at 21.13%.
How much would a ₹10,000 SIP in Quant Small Cap be worth after 10 years?
At a 24.98% SIP return, a ₹10,000 monthly SIP would be worth about ₹45 lakh on ₹12 lakh invested, by our calculation. The actual value depends on exact dates and NAVs.
Is Quant Small Cap Fund better than Nippon India Small Cap?
Quant has the higher 10-year SIP return, while Nippon India is the largest small-cap fund. Past returns do not guarantee future rankings; compare rolling returns, volatility, costs and process before choosing.
What are the returns of SBI and HDFC small-cap funds over 10 years?
SBI Small Cap Fund returned 17.24% and HDFC Small Cap Fund 16.99% annualised on 10-year SIPs, per the same Value Research data.
What is the difference between SIP return and CAGR?
SIP return (XIRR) measures the annualised return on monthly instalments invested at different prices. CAGR measures a single lump-sum investment over the whole period. The two can differ, so compare like with like.
Are small-cap funds risky?
Yes. They invest mainly in companies ranked 251st and below by market value, which are more volatile and less liquid. They can fall sharply and take years to recover, so they suit long horizons.
How much should I invest in small-cap funds?
Many planners suggest about 10% to 25% of equity holdings, held for seven to ten years or more. This is a rule of thumb; your own goals and risk tolerance should decide.
Should I switch my SIP to the top-ranked small-cap fund?
Not on one ranking alone. Rankings change with end dates. If your fund has lagged its benchmark and peers for two to three years, consider redirecting new SIPs rather than selling existing units, to avoid tax and exit loads.
The short version for SIP investors
Quant Small Cap Fund leads the 10-year SIP rankings at 24.98%, ahead of Nippon India at 21.13% and the large SBI and HDFC schemes near 17%. The gap is real: about ₹16 lakh on a ₹10,000 monthly SIP. But these are past SIP returns on one date, not a forecast. Small caps are volatile, big funds face liquidity limits, and rankings shift within weeks. Keep small caps a modest part of your equity, judge funds on consistency and risk as well as returns, and redirect SIPs only for lasting underperformance, not one leaderboard.
