Bandhan Small Cap vs Invesco India Small Cap: Both Funds Deliver 21%+ Returns - Which Should You Choose?
Small-cap funds offer high returns but come with high volatility, making fund selection important, and recently, small-cap net inflows were ₹7,973.33 crore, as per, AMFI August 2026 report. There are two small-cap mutual funds which have given good returns.
Over 3 years, a ₹5 lakh investment grew to ₹9.29 lakh by 22.93% annually, in Bandhan Small Cap and ₹9.03 lakh, 21.80% annually, in Invesco India Small Cap. Here is a side-by-side comparison of their NAV, AUM, and costs to reveal which small-cap fund is better for your portfolio.
1. Bandhan Small Cap Fund Direct Growth
NAV: ₹56.64
Fund Size, AUM: ₹34,176.02 Crore
Min SIP investment: ₹100
Min One-time investment: ₹1,000
3-year Return annualized: 22.93%
5-year Return annualized: 18.71%
Expense Ratio: 0.60%
Exit Load: 1% if withdrawal within 1 year
Top Holdings of Companies in this Mutual Funds
About 13.10% of the portfolio is in Reverse Repo, which means the fund is holding a good amount in cash-like instruments for now. Among actual stocks, the top names are REC Ltd with 2.42% from the financial sector and Sobha Ltd with 2.40% from real estate.
The next holdings are LT Foods Ltd with 2.10% in consumer staples, State Bank of India with 1.88% in financials and Cyient Ltd with 1.66% in technology. This shows that the portfolio is spread across many sectors.
2. Invesco India Small Cap Fund Direct Growth
NAV: ₹52.96
Fund Size, AUM: ₹16,175.35 Crore
Min SIP investment: ₹100
Min One-time investment: ₹100
3-year Return annualized: 21.80%
5-year Return annualized: 19.03%
Expense Ratio: 0.64%
Exit Load: 1% on withdrawal over 10% within 1 year
Top Holdings of Companies in this Mutual Funds
This fund has 5.19% in Repo. Its largest stock holding is in Sai Life Sciences Ltd with 5.04% from healthcare, followed by Zomato Ltd with 4.60% and Amber Enterprises India Ltd with 4.00%.
Other companies are Aditya Infotech Ltd with 3.78% from technology and Krishna Institute of Medical Sciences Ltd with 3.54% from healthcare. Compared to Bandhan, the top stocks have a little larger share. This means the fund is a little more concentrated in companies rather than the money instrument.
Also read: Small Savings Schemes 2026: PPF, Sukanya, SCSS & More - Check Current Interest Rates for Oct-Dec 2026
Bandhan Small Cap vs Invesco India Small Cap: Which One Gives Better Returns?
Bandhan Small Cap has done better over 3 years with returns of 22.93% which is more than Invesco India Small Cap with 21.80%, while Invesco has done better over 5 years 19.03% which is more than Bandhan Small Cap with 18.71%.
To make this easy to see, we used the annualized returns to estimate what a monthly SIP of ₹10,000 for 3 years is ₹3,60,000 and for 5 years it is ₹6,00,000, and a one-time lumpsum of ₹5,00,000 would have become.
Investment
Bandhan Small Cap
Invesco India Small Cap
SIP for 3 years
₹5,02,850
₹4,95,054
SIP for 5 years
₹9,56,526
₹9,64,016
Lumpsum for 3 years
₹9,28,846
₹9,03,466
Lumpsum for 5 years
₹11,78,709
₹11,94,682
These numbers are only estimates. We assumed the annualized return stayed the same every year, and real SIP returns will differ based on market ups and downs, and please note that past returns do not guarantee future returns.
Which of These Mutual Funds is Best?
Both funds are small cap funds with a very high risk rating, so both need a long time horizon of at least 5 to 7 years. Here is who each fund may suit better.
Bandhan Small Cap may suit investors who like a much larger fund size, ₹34,176 Crore AUM and a slightly lower expense ratio of 0.60%. It also suits those who prefer a portfolio spread across many sectors and major investment in cash-like instruments.
Invesco India Small Cap may suit investors who want a lower minimum one-time investment like ₹100 and are comfortable with higher investments in top stocks. It also suits those who want a fund with a slightly better 5 year record.
The right choice depends on your goal, your risk comfort and how long you can stay invested. Since both funds have different top holdings, some investors also split their money between two funds instead of picking only one. Please check the latest data before investing, as all the data is as of 7th October 2026.