Mirae Asset Small Cap Fund

Mirae Asset Small Cap Fund has delivered a 1Y SIP XIRR of 7.09%, which trails the category average SIP XIRR of 21.59% by a wide margin. On a lump-sum basis, however, the fund has outperformed the NIFTY SmallCap 250 benchmark across 1Y (12.04% vs 8.70%), 3Y (8.12% vs 4.98%), and 5Y (4.79% vs 2.96%) horizons, with positive alpha at each of these periods. Calendar year returns of 16.63% in 2025 and 8.89% in 2026 reflect a modest but positive recent trajectory.

The fund exhibits a defensive risk profile with a beta of 0.81-0.86 against the benchmark, capturing only 83.68% of upside moves while limiting downside capture to 76.68% over 3Y-15Y periods. The maximum drawdown is minimal at -0.15% with a 140-day duration and an 87-day recovery, and only 2 drawdown events exceeding 10% have occurred. The 1Y Calmar ratio of 0.79 indicates reasonable risk-adjusted returns relative to the drawdown experienced.

Detailed holdings and sector allocation data were not provided in this dataset, so specific top holdings and concentration levels cannot be assessed. As a small cap fund, it would typically hold a diversified portfolio of smaller Indian companies, and investors should review the latest factsheet for current composition. The low beta suggests the portfolio may be positioned more conservatively than the benchmark index.

The fund's 1Y SIP XIRR of 7.09% significantly underperforms the category average of 21.59%, indicating weaker recent SIP-based performance versus peers. However, its consistent lump-sum outperformance versus the NIFTY SmallCap 250 benchmark across 1Y, 3Y, and 5Y horizons, with positive alpha of 3.64%, 2.86%, and 1.17% respectively, points to steady benchmark-relative execution. The alpha narrows over longer windows and turns marginally negative beyond 10 years, suggesting the outperformance advantage has been concentrated in more recent periods.

This fund suits investors with a high risk tolerance and a long time horizon of at least 5-7 years, as small cap investments are inherently volatile and require patience through market cycles. Its below-benchmark beta and favorable downside capture make it relatively suitable for investors seeking small cap exposure with somewhat moderated volatility. SIP investors should note the recent underperformance versus category peers and evaluate whether the fund's benchmark-beating lump-sum record aligns with their expectations.

• Consistent lump-sum outperformance versus the NIFTY SmallCap 250 benchmark with positive alpha of 3.64% (1Y), 2.86% (3Y), and 1.17% (5Y)
• Favorable downside capture of 76.68% versus upside capture of 83.68%, indicating better-than-benchmark loss protection
• Low expense ratio of 0.3% for a small cap fund, which supports long-term net returns

• 1Y SIP XIRR of 7.09% substantially trails the category average SIP XIRR of 21.59%, signaling recent underperformance versus peers
• Alpha turns negative over 10Y-15Y horizons (e.g., -0.03% at 10Y and -0.43% at 15Y), indicating the benchmark-beating edge has not persisted over the longest periods