ITI Small Cap Fund
Direct · GrowthAI Summary
ITI Small Cap Fund has delivered strong SIP returns, with a 1Y XIRR of 30.13% and 3Y XIRR of 25.66%, outpacing the category averages of 21.59% and 22.67% respectively. Its 5Y XIRR of 22.72% is roughly in line with the category average of 22.02%. Against the NIFTY SmallCap 250 benchmark, the fund has generated meaningful alpha over 1Y (13.55%) and 3Y (10.02%), though alpha narrows to 1.43% over 10Y, indicating outperformance is more pronounced in recent periods.
The fund shows a beta below 1 (0.93-0.97) with consistently lower downside capture (89-92%) than upside capture, suggesting it has historically fallen less than the benchmark during declines. Only 3 drawdown events exceeding 10% were recorded, with a maximum drawdown of just -0.40% over 34 days and recovery in 155 days. Calmar ratios between 0.61 and 0.73 across 1Y to 5Y windows indicate reasonable risk-adjusted returns, though these drawdown figures appear unusually benign for a small cap fund and should be verified against longer market cycles.
The portfolio is well diversified across 79 holdings, with the top position, Acutaas Chemicals, at just 3.57% of NAV, limiting single-stock concentration risk. Pharmaceuticals & Biotechnology is the largest sector at 12.2%, followed by Industrial Products (9.9%) and Banks (8.6%), with the top 5 sectors accounting for roughly 44.5% of the portfolio. The fund maintains meaningful exposure to defensive healthcare alongside cyclical industrials and financials, providing a balanced small cap allocation.
The fund beats the category average SIP XIRR over 1Y (30.13% vs 21.59%) and 3Y (25.66% vs 22.67%), while matching it over 5Y (22.72% vs 22.02%). Calendar year returns show strong consistency in up years, including 53.45% in 2023 and 35.61% in 2024, though modest losses in 2022 (-3.17%) and 2025 (-3.39%) reflect small cap volatility. The combination of above-benchmark upside capture and below-benchmark downside capture across multiple windows suggests genuine stock selection skill relative to peers.
This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, as small cap returns can be highly volatile over shorter periods despite the fund's recent strong showing. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, given the inherent risks of the small cap segment. Investors comfortable with occasional multi-year underperformance, as seen in the narrowing long-term alpha, should consider a systematic investment approach to smooth entry points.
- Strong recent SIP performance with 1Y XIRR of 30.13% and 3Y XIRR of 25.66%, both well above category averages
- Consistently favorable capture ratios, with downside capture below 93% and upside capture near or above 100% across 1Y to 5Y windows
- Well diversified portfolio of 79 holdings with a modest top holding of 3.57%, limiting concentration risk
- Alpha has narrowed significantly over longer horizons, from 13.55% over 1Y to just 1.43% over 10Y, suggesting recent outperformance may not be sustained
- Reported maximum drawdown of -0.40% appears implausibly low for a small cap fund, so investors should not rely on these risk metrics as a guide to actual downside potential
Generated on 06-09-2026, 7:46 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 | ₹12.98 L | 30.1% | -34.8% | 113.9% |
| 3 Years | ₹36.00 L | ₹50.01 L | 25.7% | 5.0% | 46.3% |
| 5 Years | ₹60.00 L | ₹1.05 Cr | 22.7% | 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 | 30.1% | 22.0% | 21.6% | +8.2% |
| 3 Years | 25.7% | 15.3% | 22.7% | +10.4% |
| 5 Years | 22.7% | 14.3% | 22.0% | +8.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 29.2% | 19.0% | -19.1% | 113.9% | 0.73 | 3.68 | 81% | — | — |
| 3 Years | 26.8% | 26.7% | 14.5% | 36.3% | 6.46 | — | 100% | — | — |
| 5 Years | 24.3% | 23.3% | 16.4% | 36.7% | 3.14 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +13.55 | 0.96 | 102.0% | 89.6% | 22.2% | 8.7% |
| 3 Years | +10.02 | 0.97 | 100.5% | 92.5% | 27.1% | 17.4% |
| 5 Years | +4.63 | 0.93 | 94.7% | 90.3% | 20.0% | 16.0% |
| 7 Years | +2.32 | 0.94 | 93.8% | 91.2% | 21.3% | 19.7% |
| 10 Years | +1.43 | 0.94 | 93.8% | 91.2% | 14.4% | 13.4% |
| 12 Years | +1.10 | 0.94 | 93.8% | 91.2% | 11.9% | 11.1% |
| 15 Years | +0.78 | 0.94 | 93.8% | 91.2% | 9.4% | 8.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Acutaas Chemicals Limited | 3.57% |
| 2 | Laurus Labs Limited | 2.39% |
| 3 | Karur Vysya Bank Limited | 2.27% |
| 4 | VA Tech Wabag Limited | 2.12% |
| 5 | Welspun Corp Limited | 2.02% |
| 6 | Radico Khaitan Limited | 1.95% |
| 7 | Kirloskar Oil Engines Limited | 1.94% |
| 8 | Cartrade Tech Limited | 1.88% |
| 9 | Wockhardt Limited | 1.79% |
| 10 | Aster DM Quality Care Limited | 1.72% |