New Delhi, Oct. 24 -- Investors generally look at big and popular mutual fund names and invest in them. However, small-cap funds with high AUM do not necessarily deliver better returns. AUM (Assets Under Management) is the total market value of the securities and cash managed by a mutual fund scheme on behalf of its investors.

According to Value Research data, Nippon India Small Cap Fund, the category's largest scheme, with an AUM of Rs.80,906 crore, delivered a 1-year return of -1.40% as of 23 October 2026. SBI Small Cap Fund, the second-largest, with an AUM of Rs.41,059 crore, also posted a negative return of -2.33%.

In contrast, LIC MF Small Cap Fund, with an AUM of Rs.841 crore, delivered a one-year return of 5.64%, while Bank of In...