Mahindra Manulife Small Cap Fund
Direct · GrowthAI Summary
Mahindra Manulife Small Cap Fund has delivered strong lump-sum outperformance against the NIFTY SmallCap 250 across all periods, with a 3Y fund CAGR of 22.52% versus the benchmark's 17.4% and positive alpha of 5.90%. On the primary SIP metric, its 1Y XIRR of 26.77% beats the category average of 21.59%, though its 3Y XIRR of 13.60% trails the category average of 22.67% meaningfully. Calendar year returns show high dispersion, ranging from 58.69% in 2023 to -1.96% in 2025, typical of the small cap segment.
The fund exhibits a beta below 1 (0.90-0.93) with downside capture consistently in the 84-88% range versus upside capture of 93-94%, indicating it falls less than the benchmark in weak markets while capturing most of the upside. The maximum drawdown of -0.26% with a 153-day duration and 473-day recovery suggests a relatively contained recent drawdown profile, though two drawdown events exceeding 10% have occurred. Calmar ratios of 1.03 (1Y) and 0.95 (3Y) reflect solid risk-adjusted returns.
The portfolio holds 73 stocks with a well-diversified top 10, where no single holding exceeds 3.26% of NAV, led by Neuland Laboratories, Arvind, and Jindal Saw. Sector allocation is spread across Industrial Products (14.1%), Pharmaceuticals & Biotechnology (10.9%), and Auto Components (10.2%), avoiding excessive concentration in any single theme. The presence of Vodafone Idea (2.17%) adds a speculative element to an otherwise diversified book.
The fund's 1Y SIP XIRR of 26.77% outpaces the category average of 21.59%, but its 3Y XIRR of 13.60% lags the category's 22.67% by a wide margin, indicating recent lump-sum strength has not translated into SIP-period outperformance. Long-term benchmark alpha is positive across all windows from 1Y (9.90%) to 15Y (1.41%), though alpha has narrowed over longer horizons. Consistent downside capture below 90% across periods supports its defensive positioning among small cap peers.
This fund suits investors with high risk tolerance and a horizon of at least 5-7 years, given small cap volatility and the 473-day recovery time from its maximum drawdown. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, ideally accessed via SIP to smooth entry points. Investors should be comfortable with calendar-year swings such as the 58.69% gain in 2023 and the -1.96% loss in 2025.
- Consistent positive alpha over the benchmark across all periods, from 9.90% (1Y) to 1.41% (15Y)
- Favorable capture asymmetry with downside capture of 84-88% versus upside capture of 93-94%, cushioning market falls
- Well-diversified 73-stock portfolio with no top holding above 3.26% of NAV and a low 0.53% expense ratio
- 3Y SIP XIRR of 13.60% significantly trails the category average of 22.67%, indicating weaker SIP-period performance versus peers
- Long recovery time of 473 days from maximum drawdown and two drawdown events exceeding 10% highlight small cap downside risk, plus a speculative 2.17% position in Vodafone Idea
Generated on 10-09-2026, 3:09 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 | ₹12.85 L | 26.8% | -33.3% | 91.1% |
| 3 Years | ₹36.00 L | ₹43.66 L | 13.6% | 3.7% | 22.6% |
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 | 26.8% | 22.0% | 21.6% | +4.8% |
| 3 Years | 13.6% | 15.3% | 22.7% | -1.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 26.9% | 12.5% | -10.2% | 76.4% | 0.70 | 4.04 | 81% | — | — |
| 3 Years | 24.6% | 24.6% | 21.8% | 28.4% | 11.12 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +9.90 | 0.93 | 94.4% | 84.5% | 18.4% | 8.7% |
| 3 Years | +5.90 | 0.93 | 93.8% | 88.4% | 22.5% | 17.4% |
| 5 Years | +6.05 | 0.90 | 93.0% | 84.9% | 18.7% | 13.3% |
| 7 Years | +3.96 | 0.90 | 93.0% | 84.9% | 13.0% | 9.4% |
| 10 Years | +2.50 | 0.90 | 93.0% | 84.9% | 9.0% | 6.5% |
| 12 Years | +1.94 | 0.90 | 93.0% | 84.9% | 7.4% | 5.4% |
| 15 Years | +1.41 | 0.90 | 93.0% | 84.9% | 5.9% | 4.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Neuland Laboratories Limited | 3.26% |
| 2 | Arvind Limited | 3.06% |
| 3 | Jindal Saw Ltd | 2.97% |
| 4 | Garware Hi-Tech Films Limited | 2.42% |
| 5 | Angel One Limited | 2.27% |
| 6 | Usha Martin Limited | 2.27% |
| 7 | The Ramco Cements Limited | 2.26% |
| 8 | Aditya Birla Capital Limited | 2.23% |
| 9 | Voltamp Transformers Limited | 2.19% |
| 10 | Vodafone Idea Limited | 2.17% |