DSP Small Cap Fund
Direct · GrowthAI Summary
DSP Small Cap Fund has delivered strong long-term SIP XIRR of 19.40% over 5Y and 20.38% over 10Y, comfortably beating the NIFTY SmallCap 250 across all periods — for example, 19.19% fund CAGR vs 16.03% benchmark CAGR over 5Y and 17.41% vs 14.33% over 10Y. Against the category, the fund trails slightly on 3Y (21.47% vs 22.67%) and 5Y (19.40% vs 22.02%) SIP XIRR, but leads on 10Y (20.38% vs 20.91% is near-par) and 12Y (19.98% vs 19.35%). The 1Y XIRR of 28.97% is well ahead of the category average of 21.59%, indicating strong recent momentum.
The fund exhibits a defensive risk profile for a small cap fund, with beta consistently between 0.81 and 0.88 and downside capture of 76-81% versus upside capture of 82-90%, meaning it falls less than the benchmark in weak markets. It has experienced 8 drawdown events greater than 10%, and the maximum drawdown took 805 days to recover (286 days to recovery from the trough), underscoring the extended recovery periods small cap investors must be prepared for. Positive alpha across all periods — from 3.85% over 3Y to 11.21% over 1Y — indicates meaningful risk-adjusted outperformance versus the benchmark.
The portfolio holds 78 stocks with a diversified top 10 accounting for roughly 29.9% of NAV, led by Lumax Auto Technologies at 6.16%. Sector allocation is spread across Industrial Products (15.3%), Auto Components (14.3%), Consumer Durables (13.0%), Pharmaceuticals (8.0%), and Chemicals (5.8%), with meaningful exposure to cyclical manufacturing and auto-linked businesses. This breadth reduces single-stock risk, though the tilt toward industrials and auto components makes returns sensitive to domestic capex and consumption cycles.
The fund sits in the middle of its category on recent SIP returns — below the 3Y and 5Y category averages by roughly 1.2-2.6 percentage points — but is competitive over longer horizons, matching the 10Y category average and beating it over 12Y (19.98% vs 19.35%). Its consistency is better reflected in benchmark-relative terms, where it has generated positive alpha in every measured period from 1Y through 15Y. Calendar year returns show high dispersion typical of small caps, ranging from 100.99% in 2014 to -25.18% in 2018.
This fund suits investors with a high risk tolerance and a horizon of at least 7 years, given the 805-day maximum drawdown recovery period and the sharp calendar-year swings. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, ideally accessed through SIPs to smooth volatility. Investors should be comfortable with interim declines exceeding 20% (as in 2018) in exchange for long-term alpha generation over the small cap benchmark.
- Positive alpha versus the NIFTY SmallCap 250 in every period from 1Y to 15Y, including 7.20% over 12Y and 11.21% over 1Y
- Defensive downside capture of 76-81% across all periods, cushioning losses relative to the benchmark in weak markets
- Strong long-term SIP XIRR of 20.38% over 10Y and 19.98% over 12Y, with a competitive 0.8% expense ratio for the category
- SIP XIRR trails the category average over 3Y (21.47% vs 22.67%) and 5Y (19.40% vs 22.02%), showing middling peer-relative performance in recent years
- Eight drawdown events greater than 10% and a maximum drawdown recovery spanning 805 days highlight the potential for prolonged underwater periods
Generated on 03-09-2026, 3:07 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 | ₹13.19 L | 29.0% | -53.5% | 152.8% |
| 3 Years | ₹36.00 L | ₹50.70 L | 21.5% | -26.3% | 50.8% |
| 5 Years | ₹60.00 L | ₹1.01 Cr | 19.4% | -12.3% | 38.2% |
| 7 Years | ₹84.00 L | ₹1.74 Cr | 19.8% | 1.4% | 29.2% |
| 10 Years | ₹1.20 Cr | ₹3.45 Cr | 20.4% | 16.5% | 23.5% |
| 12 Years | ₹1.44 Cr | ₹5.11 Cr | 20.0% | 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% | 22.0% | 21.6% | +7.0% |
| 3 Years | 21.5% | 15.3% | 22.7% | +6.2% |
| 5 Years | 19.4% | 14.3% | 22.0% | +5.1% |
| 7 Years | 19.8% | 14.3% | 21.8% | +5.4% |
| 10 Years | 20.4% | 14.0% | 20.9% | +6.4% |
| 12 Years | 20.0% | 13.5% | 19.4% | +6.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 27.3% | 19.7% | -32.3% | 127.3% | 0.62 | 2.46 | 81% | — | — |
| 3 Years | 22.3% | 23.4% | -12.6% | 56.6% | 1.09 | 4.46 | 93% | — | — |
| 5 Years | 20.1% | 19.1% | -0.4% | 37.7% | 1.52 | 16.27 | 100% | — | — |
| 10 Years | 20.8% | 20.6% | 15.4% | 27.7% | 4.22 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +11.21 | 0.88 | 89.7% | 77.8% | 19.6% | 8.7% |
| 3 Years | +3.85 | 0.84 | 85.3% | 81.2% | 19.5% | 17.4% |
| 5 Years | +4.80 | 0.83 | 85.2% | 80.3% | 19.2% | 16.0% |
| 7 Years | +6.26 | 0.83 | 85.3% | 79.3% | 25.8% | 22.1% |
| 10 Years | +4.53 | 0.81 | 82.4% | 77.3% | 17.4% | 14.3% |
| 12 Years | +7.20 | 0.82 | 84.2% | 77.1% | 19.9% | 14.0% |
| 15 Years | +7.29 | 0.82 | 84.0% | 76.1% | 19.5% | 13.5% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Lumax Auto Technologies Limited | 6.16% |
| 2 | Thangamayil Jewellery Limited | 3.76% |
| 3 | Kirloskar Oil Engines Limited | 3.27% |
| 4 | Welspun Corp Limited | 2.92% |
| 5 | Sansera Engineering Limited | 2.40% |
| 6 | Dodla Dairy Limited | 2.38% |
| 7 | LT Foods Limited | 2.37% |
| 8 | Triveni Engineering & Industries Limited | 2.28% |
| 9 | IPCA Laboratories Limited | 2.20% |
| 10 | Shriram Pistons & Rings Limited | 2.13% |