New Delhi, Sept. 14 -- Small-cap mutual funds have continued to attract investor money, with the category recording a record net inflow of Rs.7,973 crore in August 2026, the highest among active equity fund categories.

Among the 10 largest small-cap funds by assets under management (AUM), the focus is on which schemes delivered the highest returns over three years and whether those higher returns came with lower volatility.

Based on three-year returns, Bandhan Small Cap led the group with a 24.38% annualised return, followed by Invesco India Small Cap at 22.36%.

DSP Small Cap and Quant Small Cap were next, with returns of 16.99% and 16.91%, respectively.

Over five years, Invesco India Small Cap had the highest annualised return at 20....