ITI Small Cap Fund
Direct · GrowthAI Summary
ITI Small Cap Fund has delivered strong SIP returns, with 1Y XIRR of 23.36% and 3Y XIRR of 26.29% outperforming the category averages of 17.53% and 20.09% respectively, while the 5Y XIRR of 22.64% is roughly in line with the category's 22.84%. Against the NIFTY SmallCap 250 benchmark, the fund has generated positive alpha across all measured periods, with alpha of 14.40% over 1Y, 10.27% over 3Y, and 5.10% over 5Y on a lump-sum basis. The fund has beaten its benchmark CAGR in every window from 1Y through 15Y, demonstrating consistent outperformance.
The fund's beta of approximately 0.94-0.99 across periods indicates near-market sensitivity, with downside capture consistently below 100% (91-93%) showing better-than-market resilience in falling markets. Four drawdown events exceeding 10% have occurred, though the current maximum drawdown is minimal at -0.40% with quick recovery characteristics. Calmar ratios declined from 0.73 (1Y) to 0.59 (5Y), suggesting somewhat weaker risk-adjusted returns over longer lump-sum windows even as raw returns remained strong.
The portfolio holds 82 stocks with a well-diversified top 10 accounting for only about 21.8% of NAV, with no individual position exceeding 3.55%. Pharmaceuticals & Biotechnology is the largest sector at 12.1%, followed by Industrial Products at 9.8% and Auto Components at 8.6%, indicating a diversified rather than single-theme approach. The holding mix spans chemicals, banks, capital markets, IT hardware, and beverages, providing broad exposure across small-cap industries.
The fund outperforms the category average SIP XIRR over 1Y and 3Y horizons by roughly 6 percentage points each, though it is marginally behind at the 5Y mark (22.64% vs 22.84%). Calendar year returns show strong upside years such as 53.45% in 2023 and 35.61% in 2024, but consecutive negative years in 2022 (-3.17%) and 2025 (-3.39%) reflect the inherent small-cap cyclicality. The consistent positive alpha across all benchmark windows supports a view of sustained stock selection skill.
This fund suits investors with high risk tolerance seeking aggressive small-cap growth exposure, ideally as a satellite allocation within a broader diversified portfolio rather than a core holding. A minimum investment horizon of 5-7 years is advisable given the sharp negative years and the volatility inherent to the small-cap category. Investors should be comfortable with drawdowns exceeding 10% that have occurred multiple times historically.
- Strong benchmark outperformance with positive alpha across all periods from 1Y to 15Y, including 14.40% alpha over 1Y and 10.27% over 3Y
- Downside capture consistently below 100% (around 91-93%), indicating the fund falls less than the benchmark during market declines
- Low 0.39% expense ratio among the lowest in the small-cap category, combined with SIP XIRR beating category averages over 1Y (23.36% vs 17.53%) and 3Y (26.29% vs 20.09%)
- Four drawdown events exceeding 10% and consecutive negative calendar years in 2022 and 2025 highlight meaningful downside volatility typical of small caps
- Calmar ratio declined from 0.73 (1Y) to 0.59 (5Y) and 5Y lump-sum Fund CAGR of 17.51% trails the 5Y rolling average, indicating weaker long-horizon risk-adjusted efficiency
Generated on 01-11-2026, 3:00 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 | ₹13.10 L | 30.3% | -34.8% | 113.9% |
| 3 Years | ₹36.00 L | ₹49.58 L | 25.3% | 5.0% | 46.3% |
| 5 Years | ₹60.00 L | ₹1.05 Cr | 22.8% | 13.7% | 33.5% |
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 | 30.3% | 21.9% | 17.5% | +8.4% |
| 3 Years | 25.3% | 15.2% | 20.1% | +10.1% |
| 5 Years | 22.8% | 14.3% | 22.8% | +8.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 28.9% | 19.5% | -19.1% | 113.9% | 0.73 | 3.70 | 82% | — | — |
| 3 Years | 26.7% | 26.6% | 14.5% | 36.3% | 6.42 | — | 100% | — | — |
| 5 Years | 23.7% | 21.8% | 15.9% | 36.7% | 3.04 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +14.40 | 0.99 | 104.7% | 91.6% | 12.7% | -1.9% |
| 3 Years | +10.27 | 0.98 | 101.6% | 93.2% | 22.6% | 12.4% |
| 5 Years | +5.10 | 0.94 | 95.9% | 91.1% | 17.5% | 12.8% |
| 7 Years | +2.51 | 0.94 | 94.2% | 91.5% | 20.4% | 18.5% |
| 10 Years | +1.57 | 0.94 | 94.2% | 91.5% | 13.8% | 12.6% |
| 12 Years | +1.22 | 0.94 | 94.2% | 91.5% | 11.4% | 10.4% |
| 15 Years | +0.88 | 0.94 | 94.2% | 91.5% | 9.0% | 8.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Acutaas Chemicals Limited | 3.55% |
| 2 | Welspun Corp Limited | 2.89% |
| 3 | Laurus Labs Limited | 2.36% |
| 4 | VA Tech Wabag Limited | 1.98% |
| 5 | Karur Vysya Bank Limited | 1.93% |
| 6 | Wockhardt Limited | 1.90% |
| 7 | Multi Commodity Exchange of India Limited | 1.88% |
| 8 | Cartrade Tech Limited | 1.79% |
| 9 | GNG Electronics Ltd | 1.77% |
| 10 | Radico Khaitan Limited | 1.73% |