Edelweiss Small Cap Fund
Direct · GrowthAI Summary
Edelweiss Small Cap Fund has delivered strong SIP XIRR across horizons, with 26.83% over 5Y and 22.98% over 7Y, comfortably ahead of category averages of 22.02% and 21.81% respectively. On a lump-sum basis, the fund has beaten the NIFTY SmallCap 250 across all periods, with a 5Y CAGR of 19.26% versus the benchmark's 16.03% and alpha of 5.01%. The 1Y XIRR of 30.70% also outpaces the category average of 21.59%, indicating recent momentum remains intact.
The fund exhibits a defensive risk profile for a small cap fund, with beta consistently below 0.9 (0.81-0.88) and downside capture of roughly 79-85% across periods, meaning it falls less than the benchmark in weak markets. The maximum drawdown of just -0.37% with a 32-day duration and 154-day recovery suggests the measured window captured a mild drawdown period, though 4 drawdown events exceeding 10% confirm small cap volatility risk remains. Calmar ratios of 0.79-0.80 over 1Y-5Y indicate solid risk-adjusted returns relative to drawdown experienced.
Portfolio composition data was not provided in this analysis, so specific top holdings and sector allocations cannot be assessed. Investors should review the latest factsheet to evaluate individual stock concentration and sector exposure before investing. The fund's below-benchmark beta suggests a relatively diversified or defensively positioned portfolio, but this should be verified against current holdings.
The fund outperforms category average SIP XIRR at every measured horizon, with the widest gap at 1Y (30.70% vs 21.59%) and a 4.81 percentage point lead at 5Y. Consistency is a hallmark, with positive alpha across all benchmark periods from 1Y through 15Y, ranging from 3.00% to 7.40%. Calendar year returns show strong upside years (68.35% in 2021, 43.20% in 2023) alongside modest down years (-1.69% in 2025), reflecting the inherent cyclicality of small caps.
This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, as small cap returns are volatile over shorter periods. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, given the asset class's drawdown potential. SIP investing is well suited here, as demonstrated by the strong XIRR figures relative to lump-sum benchmark CAGRs.
- Consistent outperformance versus category average SIP XIRR at all horizons, including 26.83% over 5Y versus the category's 22.02%
- Positive alpha across every benchmark period from 1Y to 15Y, with 5Y alpha of 5.01% over the NIFTY SmallCap 250
- Favorable downside capture of 79-85% with beta below 0.9, offering better-than-benchmark resilience in falling markets
- Upside capture below 90% in all periods means the fund lags the benchmark in strong rallies, capping bull-market gains
- Four drawdown events exceeding 10% highlight the significant volatility inherent to small cap investing, requiring a long holding period
Generated on 06-09-2026, 7:48 PM. 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 | ₹13.18 L | 30.7% | -50.5% | 136.7% |
| 3 Years | ₹36.00 L | ₹53.54 L | 27.5% | 1.7% | 54.3% |
| 5 Years | ₹60.00 L | ₹1.11 Cr | 26.8% | 11.3% | 39.6% |
| 7 Years | ₹84.00 L | ₹1.89 Cr | 23.0% | 19.7% | 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 | 30.7% | 22.0% | 21.6% | +8.7% |
| 3 Years | 27.5% | 15.3% | 22.7% | +12.2% |
| 5 Years | 26.8% | 14.3% | 22.0% | +12.5% |
| 7 Years | 23.0% | 14.4% | 21.8% | +8.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 29.3% | 21.3% | -27.5% | 131.3% | 0.73 | 4.29 | 90% | — | — |
| 3 Years | 29.2% | 28.4% | 15.8% | 48.7% | 2.95 | — | 100% | — | — |
| 5 Years | 29.8% | 30.9% | 17.8% | 40.5% | 3.77 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +4.41 | 0.88 | 89.9% | 84.5% | 12.8% | 8.7% |
| 3 Years | +3.00 | 0.82 | 83.5% | 80.2% | 18.4% | 17.4% |
| 5 Years | +5.01 | 0.81 | 84.4% | 79.4% | 19.3% | 16.0% |
| 7 Years | +7.40 | 0.84 | 86.3% | 79.5% | 27.1% | 22.1% |
| 10 Years | +5.38 | 0.84 | 86.1% | 78.8% | 18.6% | 14.5% |
| 12 Years | +4.20 | 0.84 | 86.1% | 78.8% | 15.3% | 11.9% |
| 15 Years | +3.07 | 0.84 | 86.1% | 78.8% | 12.1% | 9.4% |