Bandhan Small Cap Fund
Direct · GrowthAI Summary
Bandhan Small Cap Fund has delivered strong SIP returns, with XIRR of 35.58% over 1Y, 29.42% over 3Y, and 26.84% over 5Y, comfortably ahead of category averages of 21.59%, 22.67%, and 22.02% respectively. On a lump-sum basis, the fund's CAGR has beaten the NIFTY SmallCap 250 across all periods from 1Y to 15Y, with alpha ranging from 3.74% to 10.69%. The 3Y alpha of 10.69% and 7Y alpha of 10.54% stand out as particularly strong periods of outperformance.
The fund exhibits defensive characteristics for a small cap fund, with beta declining from around 0.91 over 1Y to 0.80 over longer horizons and downside capture of just 79.32% over 10Y and 15Y. It has experienced 5 drawdown events greater than 10%, with the maximum drawdown lasting 245 days and taking 359 days to recover, which is a meaningful recovery lag investors should be prepared for. Calmar ratios between 1.23 and 1.44 across 1Y to 5Y windows indicate solid risk-adjusted returns relative to drawdown severity.
Detailed holdings and sector allocation data were not provided in this dataset, so portfolio composition cannot be assessed here. Investors should review the fund's latest factsheet to evaluate top holdings, sector concentration, and diversification before investing. The low expense ratio of 0.41% for a direct small cap plan is a favorable cost attribute at the portfolio level.
The fund has consistently outpaced its category on SIP XIRR at every horizon, beating the category average by roughly 4 to 14 percentage points across 1Y, 3Y, and 5Y windows. Calendar year returns show strong upside years such as 55.23% in 2023 and 44.33% in 2024, though 2025 was flat at -0.58% and 2022 saw -5.78%, reflecting small cap cyclicality. This mix of high peaks with occasional negative years is typical of the category, but the fund's persistent benchmark alpha suggests genuine stock selection skill.
This fund suits investors with a high risk tolerance and a long time horizon of at least 5 to 7 years, given small cap volatility and the 359-day recovery from its worst drawdown. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, ideally accessed through SIPs to smooth entry points. Investors should be comfortable with calendar year swings ranging from -5.78% to +55.23%.
- SIP XIRR of 29.42% over 3Y and 26.84% over 5Y significantly exceeds category averages of 22.67% and 22.02%
- Consistent alpha over the NIFTY SmallCap 250 across all periods from 1Y to 15Y, including 10.69% over 3Y
- Low downside capture of 79.32% over 10Y and 15Y with beta of 0.80, indicating strong downside protection for a small cap fund
- Low direct plan expense ratio of 0.41%
- Maximum drawdown recovery took 359 days after a 245-day drawdown period, highlighting extended recovery risk
- Calendar year returns are highly volatile, including -5.78% in 2022 and -0.58% in 2025, typical of small cap cyclicality
Generated on 01-09-2026, 2:46 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 | ₹13.07 L | 35.6% | -29.0% | 113.1% |
| 3 Years | ₹36.00 L | ₹53.35 L | 29.4% | 8.5% | 53.7% |
| 5 Years | ₹60.00 L | ₹1.15 Cr | 26.8% | 17.0% | 39.8% |
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 | 35.6% | 22.0% | 21.6% | +13.6% |
| 3 Years | 29.4% | 15.3% | 22.7% | +14.1% |
| 5 Years | 26.8% | 14.3% | 22.0% | +12.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 35.1% | 24.9% | -9.9% | 114.9% | 0.84 | 6.73 | 84% | — | — |
| 3 Years | 31.4% | 31.4% | 22.6% | 38.6% | 8.28 | — | 100% | — | — |
| 5 Years | 29.9% | 30.4% | 19.7% | 40.8% | 3.62 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +4.38 | 0.91 | 90.8% | 86.3% | 12.9% | 8.7% |
| 3 Years | +10.69 | 0.90 | 94.2% | 85.4% | 27.0% | 17.4% |
| 5 Years | +5.47 | 0.87 | 89.5% | 84.4% | 20.3% | 16.0% |
| 7 Years | +10.54 | 0.80 | 88.2% | 79.3% | 28.1% | 20.3% |
| 10 Years | +6.57 | 0.80 | 88.2% | 79.3% | 18.9% | 13.8% |
| 12 Years | +5.13 | 0.80 | 88.2% | 79.3% | 15.6% | 11.4% |
| 15 Years | +3.74 | 0.80 | 88.2% | 79.3% | 12.3% | 9.0% |