Smallcap mutual funds invest in smallcap companies and are generally associated with higher risk levels than midcap and largecap funds. The volatility in the stock market impacts their performance. As per reports, the top 10 smallcap funds in India with the highest one-year returns are HDFC Small Cap, Quant Small Cap, Franklin India Smaller Companies, Nippon India Small Cap, Tata Small Cap, HSBC Small Cap, ITI Small Cap, DSP Small Cap, Sundaram Small Cap, Invesco India Smallcap