ICICI Prudential Small Cap Fund
Direct · GrowthAI Summary
ICICI Prudential Small Cap Fund has delivered strong long-term SIP XIRR of 21.64% over 5Y and 19.8% over 10Y, though it trails the category average SIP XIRR across most horizons (e.g., 21.64% vs 22.84% 5Y category average). Against the NIFTY SmallCap 250 benchmark, the fund shows positive lump-sum alpha over longer periods (4.26% over 10Y, 3.50% over 7Y) but negative alpha over 1Y (-2.42%) and 3Y (-0.72%). Recent calendar-year returns have been weak, with -1.38% in 2026 and just 0.31% in 2025 following strong 2023-2024 gains.
The fund's beta of roughly 0.70-0.79 versus the benchmark indicates lower volatility than the category index, consistent with downside capture ratios (69-76%) that are slightly below upside capture over most periods. Recent drawdowns have been modest (maximum drawdown of just -0.45%), though the fund has experienced 5 drawdown events exceeding 10%, and the longest drawdown lasted 790 days with a 254-day recovery. Calmar ratios of roughly 0.38-0.46 across horizons suggest reasonable but not exceptional risk-adjusted returns.
The portfolio is well diversified across 114 stocks, with the top holding (Shadowfax Technologies) at just 3.79% and the top 10 aggregating only about 21% of NAV. Auto Components (12.2%), Industrial Products (10.4%), and Chemicals (7.6%) are the leading sector exposures, giving meaningful cyclical tilt alongside finance and capital markets names. This spread reduces single-stock risk while maintaining focused exposure to India's manufacturing and industrial theme.
The fund's SIP XIRR lags category averages at every listed horizon — most notably 13.4% vs 17.53% over 1Y and 21.64% vs 22.84% over 5Y — indicating underperformance versus typical small-cap peers recently. However, lump-sum alpha versus the benchmark has been consistently positive over 7Y, 10Y, 12Y, and 15Y (3.5-4.3%), suggesting durable long-run stock selection. Long-term calendar returns show strong up-capture in rallies (61.71% in 2021, 53% in 2014) but meaningful losses in weak years (-21.33% in 2018).
This fund suits investors with a high risk tolerance and a horizon of at least 7-10 years, given the long recovery periods typical of small-cap drawdowns and the fund's demonstrated 790-day maximum drawdown duration. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding. SIP investors benefit from rupee-cost averaging through volatile phases, as evidenced by stronger SIP XIRR than lump-sum CAGR over most periods.
- Consistent positive alpha versus the NIFTY SmallCap 250 over longer horizons, including 4.26% over 10Y and 3.50% over 7Y, indicating skilled long-term stock selection
- Highly diversified portfolio of 114 holdings with a low top-holding concentration of just 3.79%, limiting single-stock risk
- Below-benchmark beta (0.70-0.79) and downside capture under 76%, offering relatively smoother rides within the volatile small-cap category
- SIP XIRR trails the category average at every horizon, with a notable 1Y gap of 13.4% versus the category's 17.53%
- Recent performance is weak, with calendar-year returns of just 0.31% in 2025 and -1.38% in 2026, raising near-term momentum questions
Generated on 02-11-2026, 3:36 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 | ₹12.87 L | 21.9% | -58.2% | 135.3% |
| 3 Years | ₹36.00 L | ₹45.70 L | 18.1% | -25.6% | 53.8% |
| 5 Years | ₹60.00 L | ₹98.88 L | 18.3% | -12.3% | 37.0% |
| 7 Years | ₹84.00 L | ₹1.75 Cr | 19.4% | -4.3% | 29.7% |
| 10 Years | ₹1.20 Cr | ₹3.35 Cr | 19.8% | 15.9% | 23.5% |
| 12 Years | ₹1.44 Cr | ₹4.54 Cr | 18.2% | 15.2% | 21.2% |
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 | 21.9% | 21.9% | 17.5% | +0.1% |
| 3 Years | 18.1% | 15.2% | 20.1% | +2.9% |
| 5 Years | 18.3% | 14.3% | 22.8% | +4.1% |
| 7 Years | 19.4% | 14.4% | 21.8% | +5.0% |
| 10 Years | 19.8% | 14.0% | 20.8% | +5.8% |
| 12 Years | 18.2% | 13.5% | 19.2% | +4.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 20.6% | 13.8% | -31.5% | 132.5% | 0.49 | 1.61 | 80% | — | — |
| 3 Years | 18.3% | 17.8% | -11.3% | 49.8% | 0.99 | 3.85 | 95% | — | — |
| 5 Years | 17.9% | 17.1% | -3.4% | 38.7% | 1.31 | 7.36 | 98% | — | — |
| 10 Years | 17.7% | 17.4% | 14.2% | 20.9% | 7.57 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -2.42 | 0.79 | 75.1% | 76.4% | -4.0% | -3.7% |
| 3 Years | -0.72 | 0.72 | 71.8% | 70.9% | 9.5% | 11.7% |
| 5 Years | +1.14 | 0.73 | 74.6% | 72.2% | 11.7% | 12.1% |
| 7 Years | +3.50 | 0.79 | 79.6% | 75.7% | 20.4% | 19.7% |
| 10 Years | +4.26 | 0.76 | 76.9% | 72.1% | 15.4% | 12.6% |
| 12 Years | +3.61 | 0.73 | 74.3% | 69.7% | 14.6% | 12.7% |
| 15 Years | +3.71 | 0.70 | 72.2% | 67.1% | 14.6% | 12.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Shadowfax Technologies Ltd | 3.79% |
| 2 | Sedemac Mechatronics Ltd | 2.82% |
| 3 | Atul Ltd. | 2.11% |
| 4 | Travel Food Services Ltd | 2.07% |
| 5 | RR Kabel Ltd. | 1.86% |
| 6 | Timken India Ltd. | 1.78% |
| 7 | LIC Housing Finance Ltd. | 1.72% |
| 8 | Minda Corporation Ltd. | 1.66% |
| 9 | ZF Commercial Vehicle Control Systems India Ltd | 1.63% |
| 10 | Pondy Oxides & Chemical Ltd. | 1.58% |