Widely read:
For investors aiming to tap into India’s dynamic small-cap space, the Nippon India Small Cap Fund has been one of the standout options. With a robust track record and diversified portfolio, this fund has consistently delivered strong returns, making it an ideal choice for long-term investors seeking high-growth wealth creation.
Key highlights
- Category: Small-Cap Equity
- Fund Launch: September 2010
- Assets Under Management (AUM): Over Rs 50,000 crore (as of June 18, 2025)
- NAV: Rs 188
- Expense Ratio: 0.65 per cent (Direct Plan)
- Fund Managers: Samir Rachh
- Value Research Rating: ★★★★
- Benchmark: Nifty Smallcap 250 TRI
- Minimum SIP: Rs 100
Performance snapshot
Despite short-term volatility, the fund has significantly outperformed its benchmark and peers over longer durations:
| Period | Fund Returns |
| 5 years | 39.61 per cent (CAGR) |
| 10 years | 23.15 per cent (CAGR) |
A monthly SIP of Rs 10,000 over the past 5 years would now be worth approximately Rs 11.6 lakh, highlighting its wealth-building potential.
Portfolio and strategy
The fund’s success lies in its bottom-up stock selection and broad-based exposure to over 230 stocks. This not only enhances diversification but also reduces concentration risk.
Top holdings (as of June 18, 2025)
- HDFC Bank – 2.05 per cent
- MCX – 1.94 per cent
- Kirloskar Brothers – 1.29 per cent
- Tube Investments of India – 1.21 per cent
- SBI – 1.17 per cent
The top 10 stocks together account for just 13.21 per cent of the total portfolio.
Sector allocation
| Sector | Allocation ( per cent) |
| Industrials | 22.96 per cent |
| Materials | 15.07 per cent |
| Financial Services | 14.78 per cent |
| Consumer Discretionary | 14.67 per cent |
| Consumer Staples | 8.84 per cent |
| Healthcare | 8.18 per cent |
| Technology | 5.95 per cent |
| Energy & Utilities | 3.06 per cent |
| Diversified | 1.47 per cent |
| Real Estate | 0.73 per cent |
The top three sectors—Industrials, Materials and Financial Services—constitute over 40 per cent of the portfolio.
Fund metrics
- Portfolio P/E: 27.40
- Portfolio P/B: 3.87
- Number of Stocks: 237
- Average Market Cap: Rs 23,029 crore
- Mid-cap Exposure: 16.33 per cent
- Small-cap Exposure: 71.41 per cent
This positioning helps the fund tap into both early-stage growth and emerging mid-sized leaders.
Who should invest?
- Investors with a 7+ year horizon
- Those comfortable with market volatility
- Ideal for SIP-based investing to benefit from rupee-cost averaging
- Suitable for long-term wealth creation goals
Should you Invest in Nippon India Small Cap Fund?
Deciding whether to invest in this fund requires careful consideration and expert insights. To make an informed choice, explore the Nippon India Small Cap Fund analyst status on the VRO Fund Advisor. This tool provides up-to-date recommendations on whether you should buy, hold, or sell the fund based on thorough research and current market conditions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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