Best mutual funds: These small cap funds have produced more than 30% annualized returns over the past 5 years. Checklist

Best Mutual Funds: When investing in a mutual fund scheme, investors often examine the scheme’s returns and compare them to those of other schemes in the same category. Although returns in the past may not continue in the future, investors often based their investment decisions on how a scheme has performed in the past. Here we list the past performance of the best achievements for small cap, which delivered an annual yield of 30 percent. To set this perspective means an annual return of 30 percent that if someone invests £ 1 lakh, this growth rate would become £ 3,71,293 after five years. Small-cap-among funds refer to schemes that have invested 65 percent of their assets in small-cap stocks and the remaining assets in the middle or large cap shares. On June 30, 2025, there were 30 small cap schemes with a total assets under management (AUM) of £ 3,54,550 crore. Top-performing Kleinapitalization Funds Small Cap Fund 5-Year Return (%) Bandhan Small Cap Fund 32.98 Boi Small Cap Fund 30.69 Edelweiss Small Cap Fund 30.54 Franklin India Small Cap Fund 31.61 HDFC Small Cap Fund 31.90 HSBC Small Cap Fund 32.14 ICICI P Small Cap Fund 30.28 Invesco India Small Cap 31.8 34.71 Tata Small Cap Fund 31.59 (Source: AMFI) As the table shows above, Bandhan Small Cap Fund produced about 33 percent, and the HSBC Small Cap Fund produced 32.14 percent. Other schemes that delivered high yields (more than 30 percent per year) include the Bank or India Small Cap Fund, Edelweiss SCF, Tata Small Cap Fund and Nippon India Small Cap Fund. Meanwhile, retail investors should be aware that past returns do not guarantee future returns. Just because some scheme has delivered good returns in the past does not mean that it will perform well in the future. Conversely, bad performance in the past does not imply similar achievement in the near future. In addition, investors can also investigate the stress test of small-cap-interruptions fund schemes before investing in them. The stress test shows the number of days it would take to liquidate 25 percent and 50 percent of the portfolio in the event of a stress event. Per SEBI guidelines are mutual funds supposed to investigate the liquidity of portfolios under stresscenarios for their mid-capitalization and small cap funds. Note: This story is for information purposes only. Please talk to a SEBI registered investment adviser before making any investment-related decision. Visit here for all updates for personal finance