Bajaj Finserv Small Cap Fund
Direct · GrowthAI Summary
Bajaj Finserv Small Cap Fund delivered a 1Y SIP XIRR of 26.03%, ahead of the category average of 21.59%. Against the NIFTY SmallCap 250, the fund generated a 1Y CAGR of 19.56% versus the benchmark's 8.7%, producing a strong alpha of 11.03%. Over longer windows, alpha remains positive but narrows considerably, from 3.03% over 3Y to just 0.49% over 10Y.
The fund shows a low maximum drawdown of -0.16% with a 35-day recovery, and only one drawdown event exceeding 10%, indicating contained recent downside. A Calmar ratio of 0.915 over 1Y reflects reasonable risk-adjusted performance. Downside capture of 84.81% versus upside capture of 95.53% over 1Y suggests the fund protects capital better in falling markets than it participates in rallies, which supports its alpha generation.
The top 10 holdings account for roughly 28% of the 89-stock portfolio, indicating a well-diversified book with no single stock above 4.09% (Rubicon Research). Sector allocation is spread across Industrial Products (12.7%), Pharmaceuticals (9.6%), Auto Components (8.9%), Consumer Durables (6.6%), and Banks (5.8%), avoiding heavy concentration in any one area. The tilt toward industrials, auto components, and pharma gives the fund a manufacturing and healthcare-driven growth orientation.
The fund's 1Y SIP XIRR of 26.03% outpaces the category average of 21.59%, positioning it in the upper tier of small cap peers over the recent period. Its consistent positive alpha across all measured windows, from 11.03% at 1Y down to 0.13% at 15Y, shows it has beaten the benchmark in every period, though the margin thins over longer horizons. A beta of around 0.91-0.92 indicates it moves slightly less than the benchmark in both directions.
This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, as small caps are inherently volatile and longer windows show much lower absolute returns. It is appropriate for those seeking benchmark-beating small cap exposure with a defensive downside profile. Investors should be prepared for periods of underperformance, as seen in the -3.46% calendar year return in 2025.
- 1Y SIP XIRR of 26.03% exceeds the category average of 21.59% by over 4 percentage points
- Strong 1Y alpha of 11.03% against the NIFTY SmallCap 250, with positive alpha across all time windows
- Favorable capture ratios (95.53% upside vs 84.81% downside over 1Y) indicating superior downside protection
- Diversified portfolio of 89 stocks with the largest holding at just 4.09% of NAV
- Alpha narrows sharply over longer horizons, from 3.03% at 3Y to just 0.49% at 10Y, suggesting limited long-term outperformance
- Calendar year 2025 return of -3.46% highlights the volatility inherent in small cap investing
- Upside capture below 100% means the fund may lag the benchmark in strong bull phases
Generated on 05-09-2026, 3:04 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹13.48 L | 26.0% | 10.4% | 34.7% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY SMALLCAP 250 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 26.0% | 22.0% | 21.6% | +4.0% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 14.8% | 15.3% | 7.9% | 20.6% | 1.80 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +11.03 | 0.92 | 95.5% | 84.8% | 19.6% | 8.7% |
| 3 Years | +3.03 | 0.91 | 93.3% | 83.2% | 4.4% | 0.9% |
| 5 Years | +1.55 | 0.91 | 93.3% | 83.2% | 2.6% | 0.6% |
| 7 Years | +0.95 | 0.91 | 93.3% | 83.2% | 1.9% | 0.4% |
| 10 Years | +0.49 | 0.91 | 93.3% | 83.2% | 1.3% | 0.3% |
| 12 Years | +0.31 | 0.91 | 93.3% | 83.2% | 1.1% | 0.2% |
| 15 Years | +0.13 | 0.91 | 93.3% | 83.2% | 0.9% | 0.2% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Rubicon Research Limited | 4.09% |
| 2 | S.J.S. Enterprises Limited | 3.21% |
| 3 | Zydus Wellness Limited | 3.02% |
| 4 | Neuland Laboratories Limited | 2.97% |
| 5 | Welspun Corp Limited | 2.71% |
| 6 | Schaeffler India Limited | 2.70% |
| 7 | The Federal Bank Limited | 2.50% |
| 8 | Angel One Limited | 2.40% |
| 9 | Timken India Limited | 2.38% |
| 10 | HEG Limited | 2.04% |