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Bank of India Small Cap Fund Tops 1-Year SIP Returns with 40%

By Arth Vani Desk ยท 2026-08-03

Small-cap equity mutual funds have delivered stellar returns over the past year, with the Bank of India Small Cap Fund leading the pack with an annualised SIP return of 40.05%. Four out of the top five performing schemes were in the small-cap category, highlighting the segment's strong performance.

Key takeaways

Small-cap equity mutual funds have delivered stellar returns over the past year, with the Bank of India Small Cap Fund leading the pack with an annualised SIP return of 40.05%. Four out of the top five performing schemes were in the small-cap category, highlighting the segment's strong performance.

Small-cap equity mutual funds have emerged as top performers over the last year, showcasing significant growth potential for investors. The Bank of India Small Cap Fund stood out, achieving an impressive annualised Systematic Investment Plan (SIP) return of 40.05%.

The dominance of small-cap schemes is evident, with six funds in this category surpassing the 20% mark in one-year SIP returns. Four of these high-performing funds secured spots among the top five performers, underscoring the segment's robust performance.

This trend suggests that investors who have consistently invested through SIPs in small-cap funds have benefited considerably from the market's upward movement in this segment. While past performance is not indicative of future results, the strong showing of these funds provides valuable insights for investors considering their portfolio allocations.

Investors looking for potentially high growth might consider the small-cap category, but it's crucial to understand the inherent risks associated with smaller companies. Diversification and a long-term investment horizon are generally recommended when investing in such volatile segments of the market.

This information is for educational purposes only and does not constitute investment advice.

Frequently asked questions

Which fund had the highest 1-year SIP return?

The Bank of India Small Cap Fund recorded the highest annualised SIP return of 40.05% over the past year.

What type of mutual funds performed best over the last year?

Small-cap equity mutual funds dominated the top performers, with several schemes showing returns exceeding 20%.

What does this performance mean for investors?

It indicates that consistent SIP investments in small-cap funds have yielded significant returns, though these funds carry higher risk.

Source: Mint Money
Investments are subject to market risks. This article is for informational purposes only and not financial advice.