DSP Small Cap Fund
Direct · GrowthAI Summary
DSP Small Cap Fund has delivered consistent SIP XIRR of 19.84%–22.13% across 3Y to 12Y horizons, outpacing the category average at 1Y (21.39% vs 17.75%) and 3Y (21.53% vs 20.35%), though trailing at 5Y (22.13% vs 22.94%) and 7Y (19.89% vs 21.8%). Against the NIFTY SmallCap 250 benchmark, the fund shows strong alpha across all periods, including 13.05% in 1Y and 4.5%–7.33% over longer windows. Lump-sum CAGR has also beaten the benchmark in every period, such as 16.84% vs 13.01% over 5Y.
The fund exhibits a defensive risk profile with a beta of 0.82–0.88 and downside capture of 76%–81%, meaning it has historically fallen materially less than the small-cap benchmark in corrections. Upside capture of 82%–90% lags its downside capture, indicating the outperformance comes primarily from loss avoidance rather than aggressive rallies. Eight drawdown events exceeding 10% highlight the inherent volatility of the small-cap category, and the long 805-day max drawdown duration with a 286-day recovery underscores the patience required.
The portfolio holds 80 stocks with a well-diversified top 10 accounting for roughly 28% of NAV, led by Lumax Auto Technologies at 5.12%. Sector exposure is concentrated in cyclical areas — Industrial Products (15.1%), Auto Components (14.5%), and Consumer Durables (12.1%) — with defensive ballast from Pharmaceuticals (8.1%). This cyclically tilted allocation aligns with the fund's strong alpha but adds sensitivity to domestic economic cycles.
The fund sits in the upper half of its category over shorter horizons, beating the category SIP XIRR at 1Y and 3Y, while slightly lagging at 5Y and 7Y before recovering at 12Y (19.84% vs 19.26%). Its consistent positive alpha versus the benchmark across 1Y to 15Y windows reflects durable stock-selection skill. Calendar year returns show high dispersion — from 100.99% in 2014 to -25.18% in 2018 — typical of the small-cap category.
This fund suits investors with a high risk tolerance and a horizon of at least 7 years, given the deep and prolonged drawdowns inherent to small caps. It is best used as a satellite allocation within a diversified portfolio rather than a core holding. SIP investing is particularly appropriate given the calendar-year volatility, allowing rupee-cost averaging through cycles.
- Consistent positive alpha versus the NIFTY SmallCap 250 across all measured periods, including 13.05% over 1Y and 6.58% over 12Y
- Superior downside protection with downside capture of 76%–81% and beta below 0.9, cushioning corrections better than the benchmark
- Strong SIP XIRR of 21.39% (1Y) and 21.53% (3Y), beating category averages of 17.75% and 20.35% respectively
- Upside capture (82%–90%) trails downside capture, suggesting the fund may lag in sharp small-cap rallies
- Heavy exposure to cyclical sectors — Industrial Products, Auto Components, and Consumer Durables total over 41% — increases sensitivity to economic downturns
- Calendar-year return dispersion, including -25.18% in 2018 and -2.65% in 2025, demands a long holding period and strong risk tolerance
Generated on 09-10-2026, 3:18 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 | ₹13.21 L | 29.0% | -53.5% | 152.8% |
| 3 Years | ₹36.00 L | ₹50.51 L | 21.4% | -26.3% | 50.8% |
| 5 Years | ₹60.00 L | ₹1.01 Cr | 19.4% | -12.3% | 38.2% |
| 7 Years | ₹84.00 L | ₹1.75 Cr | 19.9% | 1.4% | 29.2% |
| 10 Years | ₹1.20 Cr | ₹3.46 Cr | 20.4% | 16.5% | 23.5% |
| 12 Years | ₹1.44 Cr | ₹5.07 Cr | 19.9% | 16.6% | 24.1% |
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 | 29.0% | 21.9% | 17.8% | +7.1% |
| 3 Years | 21.4% | 15.2% | 20.2% | +6.2% |
| 5 Years | 19.4% | 14.3% | 22.9% | +5.1% |
| 7 Years | 19.9% | 14.4% | 21.8% | +5.5% |
| 10 Years | 20.4% | 14.0% | 20.8% | +6.4% |
| 12 Years | 19.9% | 13.5% | 19.2% | +6.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 27.2% | 19.5% | -32.3% | 127.3% | 0.62 | 2.46 | 82% | — | — |
| 3 Years | 22.2% | 23.1% | -12.6% | 56.6% | 1.09 | 4.48 | 93% | — | — |
| 5 Years | 20.1% | 19.0% | -0.4% | 37.7% | 1.53 | 16.39 | 100% | — | — |
| 10 Years | 20.7% | 19.8% | 15.4% | 27.7% | 4.15 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +13.82 | 0.88 | 90.9% | 76.9% | 17.3% | 3.0% |
| 3 Years | +4.84 | 0.84 | 85.2% | 80.3% | 16.2% | 12.3% |
| 5 Years | +4.80 | 0.83 | 85.2% | 80.0% | 15.8% | 12.0% |
| 7 Years | +6.29 | 0.83 | 85.2% | 79.1% | 25.3% | 21.5% |
| 10 Years | +4.45 | 0.82 | 82.5% | 77.5% | 16.5% | 13.3% |
| 12 Years | +6.52 | 0.82 | 83.6% | 77.0% | 18.9% | 13.6% |
| 15 Years | +7.33 | 0.82 | 83.9% | 76.0% | 19.3% | 13.2% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Lumax Auto Technologies Limited | 5.16% |
| 2 | Kirloskar Oil Engines Limited | 3.77% |
| 3 | Thangamayil Jewellery Limited | 3.37% |
| 4 | Welspun Corp Limited | 2.94% |
| 5 | Sansera Engineering Limited | 2.85% |
| 6 | Spr Auto Technologies Limited | 2.34% |
| 7 | IPCA Laboratories Limited | 2.14% |
| 8 | eClerx Services Limited | 2.02% |
| 9 | Dodla Dairy Limited | 1.96% |
| 10 | LT Foods Limited | 1.82% |