4 Top Performing Small Cap Mutual Funds of H1 2026. Do You Own Any?

#1 Bank of India Small Cap Fund

Bank of India Small Cap Fund delivered absolute returns of 21.9% compared to the benchmark Nifty Smallcap 250 - TRI's 6.9% returns and the category average of 10.4%.

The fund was launched in December 2018.

The fund invested 80.9% of its assets in small caps, 13.1% in mid caps, and just 1.5% in large caps.

Its top stocks are Wockhardt, Sky Gold and Diamonds, Acutaas Chemicals, Lloyds Metals & Energy, and Quality Power Electrical Equipments.

It carried a moderately high portfolio turnover ratio of 75-95% in the last few months.

#2 TRUSTMF Small Cap Fund

TRUSTMF Small Cap Fund delivered absolute returns of 20.3% compared to the benchmark Nifty Smallcap 250 - TRI's 6.9% returns and the category average of 10.4%.

The fund was launched in November 2024. The fund invested 67.8% of its assets in small caps, 22.3% in mid caps, and just 1.8% in large caps.

Its top stocks are Navin Fluorine International, Multi Commodity Exchange of India, Acutaas Chemicals, Cemindia Projects, and Sai Life Sciences.

It carried a high portfolio turnover ratio of around 190% in the last one year.

#3 JM Small Cap Fund

JM Small Cap Fund delivered absolute returns of 17.5% compared to the benchmark Nifty Smallcap 250 - TRI's 6.9% returns and the category average of 10.4%.

The fund was launched in June 2024.

The fund invested a major 91.9% of its assets in small caps with just 7% in mid caps and no exposure in large caps.

Its top stocks are Garware Hi-Tech Films, Acutaas Chemicals, Godfrey Philips India, TD Power Systems, Shaily Engineering Plastics.

It carried a moderate to high turnover ratio of 60-110% in the last one year.

#4 Union Small Cap Fund

Union Small Cap Fund delivered absolute returns of 17% compared to the benchmark Nifty Smallcap 250 - TRI's 6.9% returns and the category average of 10.4%.

The fund was launched in June 2014. The fund invested 73.7% of its assets in small caps, 24.1% in mid-caps, and no exposure in large caps.

Its top stocks are GE Vernova T&D India, Acutaas Chemicals, Navin Fluorine International, Karur Vysya Bank, and Multi Commodity Exchange of India.

It carried a moderate turnover ratio of 45-80% in the last one year.

Conclusion

While the top-performing small cap mutual fund delivered an impressive return of 21.9% in the first half of 2026, the bottom-performing fund generated -0.6%.

The wide dispersion in performance highlights why fund selection is especially critical in the small cap space.

The returns in the small cap space can be highly volatile and liquidity too can become a challenge during market downturns.

So, rather than getting swayed by small cap funds that have delivered one-off stellar gains, investors should aim to focus on well-diversified funds with proven track record of delivering consistently sound risk-adjusted returns.

Prefer schemes that prioritise risk management by picking quality stocks rather than those that chase market trends.

Such an approach can help you navigate the inherent volatility and downside risk of the small-cap segment while staying aligned with their long-term wealth creation goals.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

#Table Note: Data as of 01 July 2026
Returns are year-to-date (absolute %) calculated using the Direct Plan-Growth option.
Past performance is not an indicator of future returns.
The securities quoted are for illustration only and are not recommendations.

Disclaimer: This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, enlistment as RA and IA with Exchange and certification from NISM no way guarantee performance of the intermediary or provide any assurance of returns to investors.