As per the SEBI guidelines on categorization and rationalization of schemes, the Small Cap funds are required to invest at least 65 per cent of the corpus in smallcap stocks. These funds are suitable for aggressive investors with an investment horizon of seven or more years as they ought to prove highly volatile in the short term.

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Here, below we have discussed the top small-cap fund that have immensely generated returns for their investors. 

Nippon India Small Cap Fund - Direct Plan - Growth:

Assets under management: Rs 51,566 crore
Net asset value: Rs 191.92
Minimum investment (lump sum): Rs 5,000
Minimum investment (SIP): Rs 100
 
The fund’s performance is benchmarked against the NIFTY Smallcap 250 TRI and in a 10-year period it has generated an annualised yield of 25.67 per cent. 

Top stocks in the fund’s portfolio are Voltamp Transformers, HDFC Bank, Tube Investments of India, Apar Industries and Kirloskar Brothers.
 
The expense ratio of the scheme is at 0.68 per cent as on May 31, 2024.

SIP started in the fund with a monthly pay-out of Rs 10,000 in 10 years would now be worth over Rs 53.66 lakhs.

SBI Small Cap Fund - Direct Plan - Growth:

Assets under management: Rs 28,375 crore
Net asset value: Rs 200.45
Minimum investment (lump sum): Rs 5,000
Minimum investment (SIP): Rs 500
 
The fund’s performance is benchmarked against the BSE 250 SmallCap TRI index and in a 10-year period it has generated an annualised yield of 25.76 per cent. 

The largest holdings of the fund, which has invested over 46 per cent in smallcap stocks, include Blue Star, Finolex Industries,  Kalpataru Power, GE T&D India and Carborundum Universal among others. 
 
The expense ratio of the scheme is at 0.66 per cent as on May 31, 2024.

SIP started in the fund with a monthly pay-out of Rs 10,000 in 10 years would now be worth more than Rs 44.7 lakhs.

HSBC Small Cap Fund - Direct Plan - Growth

Assets under management: Rs 14,787 crore
Net asset value: Rs 94.45
Minimum investment (lump sum): Rs 5,000
Minimum investment (SIP): Rs 1,000

The fund’s performance is benchmarked against the NIFTY Smallcap 250 TRI and in a 10-year period it has generated an annualised yield of 21.56 per cent. 

Top stocks in the fund’s portfolio are Apar Industries, KEI Industries, Brigade Enterprises, Techno Electric & Engineering and Sobha among others. 
 
The expense ratio of the scheme is at 0.68 per cent as on May 31, 2024.

SIP started in the fund with a monthly pay-out of Rs 10,000 in 10 years would now be worth over Rs 43.96 lakhs.