Planning to invest in smallcap mutual funds via SIP? Check 3 top performers and 3 laggards

Systematic investment plans (SIPs) across major equity fund categories have delivered returns over the past two years even as most benchmark indices struggled during the period. Here are the top three performers and three laggards, as reported by ET Bureau.

TRUSTMF Small Cap Fund delivered the highest return of around 32.30% on SIP investments in the last two years.

Bank of India Small Cap Fund and Union Small Cap Fund delivered a return of 26.29% and 22.60%, respectively, on SIP investments.

In the last two years, the smallcap fund category delivered an average return of 14.25% and the benchmark, Nifty Smallcap 250 TRI, gave 9.78%.

HDFC Small Cap Fund, Franklin India Small Cap Fund and Tata Small Cap Fund were the three laggards, which delivered a return of 3.57%, 5.43% and 6.10%, respectively, on SIP investments in the last two years.

In the past two years, 21 smallcap funds were ahead of the benchmark, whereas 10 smallcap funds were trailing the benchmark.

The report further said that most schemes across categories outperformed their respective benchmark indices on SIP investments. The resilience of SIP returns comes amid a sharp increase in monthly contributions by retail investors. Monthly SIP flows stood at Rs 32,297 crore in August 2026, compared with Rs 23,547 crore in August 2024, an increase of about 37%.