Small-cap funds were the worst-performing equity category in October. Which funds held up and which lagged behind?
Small-cap mutual funds emerged as the worst-performing equity category in October 2026, declining 5.83% on average. Among the 36 small-cap schemes, Invesco India Small Cap Fund was the most resilient, declining 2.98% in October.
TRUSTMF Small Cap Fund and Samco Small Cap Fund followed with losses of 3.27% and 4.10%, respectively. At the other end, Tata Small Cap Fund plunged 11.16%, making it the worst performer in the category.
The divergence highlights how differently fund portfolios navigated the difficult month. While the category average fell 5.83%, several schemes managed to outperform it by limiting their declines. However, even the better-performing funds remained in negative territory.
Invesco India Small Cap Fund recorded the smallest decline among the schemes analysed, falling 2.98%. This was followed by TRUSTMF Small Cap Fund, which lost 3.27%, and Samco Small Cap Fund, which declined 4.10%.
Mahindra Manulife Small Cap Fund and ITI Small Cap Fund also performed relatively better, with losses of 4.59% and 4.66%, respectively. Aditya Birla Sun Life Small Cap Fund and HDFC Small Cap Fund posted declines of 4.84% and 4.90%.
|
October 2026 return |
|
| Invesco India Small Cap Fund | -2.98% |
| TRUSTMF Small Cap Fund | -3.27% |
| Samco Small Cap Fund | -4.10% |
| Mahindra Manulife Small Cap Fund | -4.59% |
| ITI Small Cap Fund | -4.66% |
| Source: Value Research. Returns are for direct plans. |
Tata Small Cap Fund was the worst-performing scheme in the category, declining 11.16% during October. Its loss was almost twice the category average.
Quantum Small Cap Fund was the second-worst performer, falling 7.40%, followed by ICICI Prudential Small Cap Fund, which declined 7.25%. The Wealth Company Small Cap Fund and Bank of India Small Cap Fund also recorded steep losses of 7.08% and 7.05%, respectively.
Other notable laggards included HSBC Small Cap Fund (-6.97%), Franklin India Small Cap Fund (-6.78%), DSP Small Cap Fund (-6.75%), Sundaram Small Cap Fund (-6.68%) and Groww Small Cap Fund (-6.67%).
|
Scheme |
October 2026 return |
| Tata Small Cap Fund | -11.16% |
| Quantum Small Cap Fund | -7.40% |
| ICICI Prudential Small Cap Fund | -7.25% |
| The Wealth Company Small Cap Fund | -7.08% |
| Bank of India Small Cap Fund | -7.05% |
| Source: Value Research. Returns are for direct plans. |
The weakness was not limited to small-cap funds, but the category recorded the steepest decline among the equity mutual fund categories tracked.
Mid-cap funds fell 3.52% in October, while multi-cap funds declined 2.73%. Value-oriented funds lost 1.86%, followed by flexi-cap funds at 1.66% and large-and-mid-cap funds at 1.58%. Focused funds posted a relatively smaller decline of 1.15%.
Large-cap funds were the only equity category in the comparison to deliver positive returns, gaining 0.62% during the month.
|
Equity mutual fund category |
October 2026 return |
| Large Cap | 0.62% |
| Focused | -1.15% |
| Large & Mid Cap | -1.58% |
| Flexi Cap | -1.66% |
| Value Oriented | -1.86% |
| Multi Cap | -2.73% |
| Mid Cap | -3.52% |
| Small Cap | -5.83% |
| Source: Value Research |
The performance gap suggests that investors in smaller-company stocks faced a considerably tougher month than those invested in large-cap funds.
However, one month's returns should not be the sole basis for choosing or exiting a mutual fund. Investors should also assess longer-term performance, portfolio concentration, investment strategy and consistency across market cycles.
Kirti jha
Kirti Jha is a Senior Content Producer at Mint, where she writes on mutual funds, taxation, personal finance and macroeconomic developments. Her reporting focuses on helping readers understand complex financial developments through data-driven, research-backed stories that explain how policy changes, market trends and regulatory decisions affect investors and households. <br><br> Before joining Mint, Kirti worked at ET Money, where she specialised in mutual fund research and investment analysis. She tracked portfolio disclosures, fund manager strategies, sectoral allocation shifts and investment trends, distilling large datasets into investor-focused insights. Her work combined quantitative analysis with consumer-centric storytelling, enabling readers to better understand fund positioning, portfolio changes and long-term investment opportunities.<br><br> Kirti holds a Bachelor's degree in Economics from Indraprastha College for Women, University of Delhi, and a Master's in Finance from the Jindal School of Banking & Finance at O.P. Jindal Global University. Her academic training emphasised analytical thinking, quantitative research and financial decision-making, providing a strong foundation in understanding capital markets, financial systems and economic policy. With a combined experience in investment research and financial journalism, she is committed to producing accurate, accessible and insightful journalism that empowers readers to make well-informed financial decisions.
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HomeMoneyPersonal FinanceSmall-cap funds were the worst-performing equity category in October. Which funds held up and which lagged behind?
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