Top small-cap fund of 10 years has recently bought 2 stocks

If you’re looking for long-term wealth from India’s small-cap space, it’s hard to ignore the Nippon India Small Cap Fund. With a 10-year annualised return of 22.7 per cent, it tops the charts among all small-cap funds in the country, rewarding disciplined investors handsomely.

And in May 2025, this top performer quietly made two interesting new bets.

Nippon small-cap fund’s new additions last month

1. Ramco Cements – Comprises 1.35 per cent of the small-cap fund’s portfolio.
   A seasoned mid-cap in the cement space, Ramco is known for its efficient cost structure and expanding footprint in South and East India.
2. Belrise Industries – 1.21 per cent of equity portfolio
   Belrise is an auto ancillary player with growing focus on EV components.

These first-time entries are not token purchases either. With over 1 per cent weight each, they’re significant allocations because Nippon India Small Cap Fund has over 200 stocks in its portfolio. So, a over 1 per cent weight is a sign of strong internal conviction by the fund management team.

The other notable fresh additions made by the small-cap fund are:

• CESC (0.84 per cent weight)
• Syngene International (0.61 per cent)
• Arvind Fashions (0.3 per cent)

Highest monthly increases

Besides fresh buys, the fund also increased stakes in several existing holdings. Here's where the largest hikes came:

What makes Nippon India Small Cap Fund stand out?

Just a few reasons why:

• Top small-cap fund over 10 years (22.7 per cent CAGR), which is way higher than its benchmark’s 15.8 per cent.
• High SIP returns: A Rs 10,000 monthly SIP started in 2015 would have led to a corpus of Rs 43.7 lakh, growing at an annualised rate of 24.4 per cent.
• Consistent outperformance: The fund has outperformed the category average in 10 of the last 11 calendar years.

Thinking of investing in Nippon India Small Cap Fund? The past returns are eye-catching, but there’s more to just this criteria to select a fund. Firstly, it’s crucial to ask—does it align with your risk appetite and investment horizon? Because although small-cap funds can be rewarding, they also come with higher volatility. If you’ve got the patience to stay invested for over seven years and can handle market ups and downs, our analysts have already done the homework. Head to Value Research Fund Advisor to see which small-cap funds truly stand out, based not just on past performance, but for their overall quality.

Also read: Surprise winner: Most popular fund category of May 2025