Edelweiss Small Cap Fund
Direct · GrowthAI Summary
Edelweiss Small Cap Fund has delivered SIP XIRR of 19.47% over 1Y, 24.37% over 3Y, and 25.91% over 5Y, beating the category averages of 17.53%, 20.09%, and 22.84% respectively. Against the NIFTY SMALLCAP 250 benchmark, the fund has outperformed across all periods from 1Y to 15Y, with lump-sum CAGR alpha ranging from 1.99% to 6.21%. The 5Y fund CAGR of 14.68% versus the benchmark's 12.09% reflects consistent outperformance, with the strongest in the 7Y window (23.82% vs 19.72%).
The maximum drawdown of just -0.37% with a mere 32-day drawdown duration indicates strong downside resilience in the observed period, though the fund has experienced 5 drawdown events exceeding 10%, a reminder of small cap volatility. Calmar ratios of roughly 0.77 across 1Y to 5Y periods suggest stable risk-adjusted returns, though the 7Y Calmar of 0.6657 is somewhat lower. Notably, the fund's downside capture has consistently been below 81% versus upside capture of 84-89%, meaning it loses less than the benchmark in falling markets, a key contributor to its positive alpha.
No specific holdings or sector allocation data was provided for this review. Typically, small cap funds of this profile maintain diversified exposure across 50-70 stocks spanning industrials, financials, consumer, and healthcare sectors. Investors should review the latest factsheet for current top holdings and concentration risk before investing.
The fund ranks above the category on SIP XIRR across all available horizons, with a 5Y XIRR of 25.91% versus the category's 22.84%, a margin of over 3 percentage points. Its persistence is reinforced by positive alpha in every window from 1Y through 15Y. With a competitive expense ratio of 0.47% for the Direct Growth plan, the fund maintains a strong position among small cap peers.
This fund suits investors with high risk tolerance and a horizon of at least 5-7 years, given that small cap calendar year returns have swung from +68.35% in 2021 to -1.69% in 2025. It is appropriate as a satellite allocation (typically 10-15% of an equity portfolio) rather than a core holding. SIP investors seeking long-term wealth creation with tolerance for sharp intermediate drawdowns will benefit most from its lower-than-benchmark downside capture and consistent alpha.
- SIP XIRR of 25.91% over 5Y beats the category average of 22.84% by over 3 percentage points
- Positive alpha across every period from 1Y to 15Y, with 5Y alpha of 3.62% over the NIFTY SMALLCAP 250
- Downside capture consistently below 81% (79.23% over 15Y) versus upside capture of 84-89%, aiding compounding in weak markets
- Competitive expense ratio of 0.47% in the Direct plan
- Recent performance has cooled sharply, with 2026 YTD return of only 0.25% and 2025 return of -1.69% after exceptional gains of 43.2% in 2023 and 68.35% in 2021
- Five drawdown events exceeding 10% in its history highlight the inherent volatility of the small cap category, and the 7Y Calmar of 0.6657 is the weakest of the observed windows
Generated on 01-11-2026, 3:02 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 | ₹13.16 L | 30.2% | -50.5% | 136.7% |
| 3 Years | ₹36.00 L | ₹53.23 L | 26.8% | 1.7% | 54.3% |
| 5 Years | ₹60.00 L | ₹1.09 Cr | 26.1% | 11.3% | 39.6% |
| 7 Years | ₹84.00 L | ₹1.88 Cr | 22.8% | 19.4% | 25.2% |
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 | 30.2% | 21.9% | 17.5% | +8.4% |
| 3 Years | 26.8% | 15.2% | 20.1% | +11.6% |
| 5 Years | 26.1% | 14.3% | 22.8% | +11.8% |
| 7 Years | 22.8% | 14.4% | 21.8% | +8.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 28.7% | 19.4% | -27.5% | 131.3% | 0.72 | 4.22 | 90% | — | — |
| 3 Years | 28.6% | 28.1% | 12.3% | 48.7% | 2.74 | — | 100% | — | — |
| 5 Years | 28.8% | 30.5% | 14.6% | 40.5% | 3.25 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +1.99 | 0.88 | 88.9% | 86.3% | -0.5% | -3.7% |
| 3 Years | +2.44 | 0.82 | 83.7% | 80.9% | 13.2% | 11.7% |
| 5 Years | +3.62 | 0.82 | 84.1% | 80.1% | 14.7% | 12.1% |
| 7 Years | +6.21 | 0.84 | 85.8% | 80.0% | 23.8% | 19.7% |
| 10 Years | +4.99 | 0.84 | 85.9% | 79.2% | 17.4% | 13.5% |
| 12 Years | +3.89 | 0.84 | 85.9% | 79.2% | 14.3% | 11.1% |
| 15 Years | +2.84 | 0.84 | 85.9% | 79.2% | 11.3% | 8.8% |