Best Small-Cap Index Funds in April 2025
Small-cap index funds are a type of mutual fund that aims to replicate the performance of any particular small-cap stock market index, which is usually made up of companies below a specific level of market capitalization. Some of the benefits of investing in these funds include the opportunity to diversify your portfolio through choosing a wide range of small-cap stocks and higher growth potential.
If you’re looking to earn inflation-beating returns over a long-term horizon and are okay with taking on volatility-related risks, here are the top small-cap index funds worth considering.
Top 10 Small-Cap Index Funds in April 2025
Here are some of the best small-cap index funds you can consider investing in based on their returns (as of April 2025)
Overview of the Funds
Here is a closer look at the best small-cap index funds in India.
1. Motilal Oswal Nifty Smallcap 250 Index Fund Direct Growth
- NAV – ₹33.01 (4th April, 2025)
- Fund Size – ₹702.04cr
- Minimum SIP amount – ₹500
- Exit Load – 1% if redeemed within 15 days
- Expense Ratio – 0.36%
2. ICICI Prudential Nifty Smallcap 250 Index Fund Direct Growth
- NAV – ₹15.14 (4th April, 2025)
- Fund Size – ₹383.33cr
- Minimum SIP amount – ₹100
- Expense Ratio – 0.33%
- Exit Load – Nil
3. Nippon India Nifty Smallcap 250 Index Fund Direct Growth
- NAV – ₹29.23 (4th April, 2025)
- Minimum SIP amount – ₹100
- Fund Size – ₹1,708.73cr
- Expense Ratio – 0.35%
- Exit Load – Nil
4. Aditya Birla Sun Life Nifty Smallcap 50 Index Fund Direct Growth
- NAV – ₹18.38 (4th April, 2025)
- Fund Size – ₹183.99cr
- Minimum SIP amount – ₹100
- Exit Load – 0.25% if redeemed within 15 days
- Expense Ratio – 0.46%
5. Axis Nifty Smallcap 50 Index Fund Direct Growth
- NAV – ₹15.94 (4th April, 2025)
- Minimum SIP amount – ₹100
- Fund Size – ₹398.51cr
- Expense Ratio – 0.27%
- Exit Load – Nil
6. Groww Nifty Smallcap 250 Index Fund Direct Growth
- NAV – ₹9.83 (4th April, 2025)
- Minimum SIP Amount – ₹500
- Fund Size – ₹83.48cr
- Expense Ratio – 0.45%
- Exit Loan – 0.25% if redeemed within 7 days
7. HDFC Nifty Smallcap 250 Index Fund Direct Growth
- NAV – ₹16.07 (4th April, 2025)
- Minimum SIP amount – ₹100
- Fund Size – ₹349.89cr
- Expense Ratio – 0.30%
- Exit Load – Nil
8. Bandhan Nifty Smallcap 250 Index Fund Direct Growth
- NAV – ₹10.72 (4th April, 2025)
- Minimum SIP amount – ₹100
- Fund Size – ₹40.14cr
- Expense Ratio – 0.20%
- Exit Load – Nil
9. SBI Nifty Smallcap 250 Index Fund Direct Growth
- Expense Ratio – 0.45%
- Exit Load – 0.25% if redeemed within 30 days
- NAV – ₹16.10 (4th April, 2025)
- Fund Size – ₹1,086.14cr
- Minimum SIP amount – ₹500
10. Kotak Nifty Smallcap 250 Index Fund Direct Growth
- NAV – ₹9.59 (4th April, 2025)
- Minimum SIP amount – ₹100
- Fund Size – ₹15.81cr
- Exit Load – Nil
- Expense Ratio – 0.24%
11. Edelweiss Nifty Smallcap 250 Index Fund Direct Growth
- NAV – ₹15.33 (4th April, 2025)
- Fund Size – ₹92.17cr
- Minimum SIP amount – ₹100
- Expense Ratio- 0.13%
- Exit Load – Nil
Things to Consider When Investing in Small-Cap Index Mutual Funds
Here are a few things to consider before investing in small-cap index funds.
- Small-cap index funds generally come with a low expense ratio. However, a low expense ratio does not necessarily mean low risk.
- The risks associated with small-cap index funds are usually high. Hence, it would be wise to consider assessing your risk appetite before you invest.
- Since these funds track small-cap stocks that are more prone to market swings, they are comparatively more volatile than mid-cap and large-cap funds.
Concluding Notes
Small-cap index funds can be a great value addition to your investment portfolio if you have a high risk tolerance and are willing to wait for inflation-beating returns in the long haul. However, make sure you choose suitable funds from the list of top choices given above. Here’s to starting your investment journey in mutual funds today with professional guidance and assistance.
