A smallcap fund is an equity mutual fund scheme that invests in smallcap stocks. As per the SEBI norms, listed companies in India are categorised based on their market valuations or capitalisation. Accordingly, largecap funds invest in the top 100 companies by m-cap, midcap fund invest in the next 150 companies, and smallca fund invest in the remaining universe i.e. 251st company and beyond. 

Typically these funds are suitable for investors who can afford to take a higher risk for higher returns as they invest in companies that are emerging in their business line and can rise exponentlally. 

Here is a list of the top 5 smallcap funds with the highest SIP returns in the 5-year period

Quant Smallcap Fund - Direct Plan - Growth:

The fund in the top position is accorded five stars by the rating agency CRISIL and has given annualised SIP returns of 51.65 per cent in the five-year period.

The fund has assets under management (AUM) of Rs 20,164.09 crore, while its net asset value (NAV) is Rs 284.84.

The minimum lump sum investment in the fund is Rs 5,000, while the minimum SIP investment is Rs 1000.

The expense ratio is 0.64 per cent as on April 30, 2024. It has 92 stocks in its portfolio, of which Reliance Industries, Jio Financial, IRB Infra, Bikaji Foods and Aegis Logistics are among the major stocks. 

A Rs 5,000 monthly SIP in the fund for three years, or a total of Rs 3 lakh investment, will be now worth Rs 10,19,768.

Bank of India Smallcap Fund- Direct Plan - Growth

This fund has given annualised SIP returns of 36.92 per cent in the 5-year period.

The fund's AUM is Rs 1,079.65 crore, while its NAV is priced at Rs 49.41.

The minimum lump sum investment is Rs 5000, while for starting a SIP you need to park a minimum of Rs 1000.

Its expense ratio is 0.61 per cent. The fund has 67 stocks in its portfolio with Vijaya Diagnostics, Castrol India, Avenue Supermarts, Aegis Logistics and Radico Khaitan among the top stocks.

A Rs 5,000 monthly SIP in the fund for three years has given a total of Rs 7,78,826
 as of today's date

Canara Robeco Smallcap Fund - Direct Plan - Growth

This is  a CRISIL 3-star rated fund that has given an annualised SIP returns of 37.99 per cent in the 5-year period.

The fund has assets under management (AUM) of Rs 10,085.98 crore, while its net asset value (NAV) is Rs 42.06.

The minimum lump sum investment in the fund is Rs 5,000, while the minimum SIP investment is Rs 1,000. The expense ratio is 0.42 per cent as on April 30, 2024. It has 91 stocks in its portfolio, of which KEI Industries, Bharat Electronics,  MCX, Kaynes Technology and Equitas SFB are among the major stocks. 

A Rs 5,000 monthly SIP in the fund for three years, or a total of Rs 1.8 lakh investment, will be now worth over Rs 7.5 lakh.

Nippon India Smallcap Fund - Direct Plan - Growth

This is  a CRISIL 4-star rated fund that has given an annualised SIP returns of 42.42 per cent in the 5-year period.

The fund has assets under management (AUM) of Rs 51,566 crore, while its net asset value (NAV) is Rs 186.68.

The minimum lump sum investment in the fund is Rs 5,000, while the minimum SIP investment is Rs 100. The expense ratio is 0.68 per cent as on April 30, 2024. It has 207 stocks in its portfolio, of which HDFC Bank, Tube Investments, Kirloskar Brothers, BHEL, SBI and L&T are among the major stocks. 

A Rs 5,000 monthly SIP in the fund for 5 years, or a total of Rs 3 lakh investment, will be now worth over 8.36 lakh.

Tata Smallcap Fund-Direct Plan- Growth:

This is  a CRISIL 3-star rated fund that has given an annualised SIP returns of 37.59 per cent in the 5-year period.

The fund has assets under management (AUM) of Rs 7,083 crore, while its net asset value (NAV) is Rs 42.27. The minimum lump sum investment in the fund is Rs 5,000, while the minimum SIP investment is Rs 100. The expense ratio is 0.34 per cent as on April 30, 2024. It has 51 stocks in its portfolio, of which Quess Corp, BASF India, Infrastructure Development Finance Company and Elantas Beck are among the major stocks. 

A Rs 5,000 monthly SIP in the fund for 5 years, or a total of Rs 3 lakh investment, will be now worth over 7.48 lakh.

.