Motilal Oswal Small Cap Fund
Direct · GrowthAI Summary
Motilal Oswal Small Cap Fund has delivered strong outperformance versus the NIFTY SMALLCAP 250 across all periods, with a 1Y XIRR of 16.99% and a 1Y alpha of 12.72% against a benchmark CAGR of -4.38%. Over longer horizons, the fund's lump-sum CAGR also beats the benchmark consistently, with 3Y fund CAGR of 16.99% versus 5.46% for the benchmark. However, its 1Y SIP XIRR of 16.99% trails the category average of 17.6%, suggesting peers have done slightly better on SIP returns recently.
The fund shows defensive characteristics with a beta of 0.84-0.91 and notably low downside capture of 78.86% over 3Y and beyond, meaning it loses less than the benchmark in falling markets. Risk-adjusted returns are attractive, evidenced by a 1Y Calmar ratio of 0.5862 and only one drawdown event exceeding 10%, with a maximum drawdown of just -0.24%. The recovery period of 430 days from the max drawdown indicates patience may be required after significant declines, though the small average drawdown of -0.055% suggests shallow corrections overall.
The portfolio is well diversified across 54 holdings, with the top position CCL Products at only 4.6% of NAV and the top 10 holdings totaling roughly 33.5%. Sector allocation is spread across Consumer Durables (10.5%), Auto Components (8.4%), Healthcare Services (8.2%), Retailing (7.5%), and Banks (7.4%), avoiding heavy concentration in any single theme. This balanced mix of financials, healthcare, consumer, and industrial names supports the fund's low downside capture.
While the fund clearly beats its benchmark, its SIP XIRR of 16.99% over 1Y sits slightly below the category average of 17.6%, and longer-horizon category SIP averages (20-23%) suggest the fund's lump-sum CAGRs of 4-17% may lag the best SIP peers. Calendar year returns show volatility in consistency, ranging from 47.62% in 2024 to -5.08% in 2025 and 0.0% in 2023. The fund's persistent positive alpha across 1Y to 15Y windows indicates genuine stock-selection skill rather than a single lucky period.
This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, given small cap volatility and the 430-day recovery from the maximum drawdown. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, ideally accessed through SIPs to smooth entry points. Investors should be comfortable with calendar-year swings such as the -5.08% return in 2025 following the 47.62% gain in 2024.
- Consistent positive alpha across all measured periods, from 12.72% over 1Y to 1.25% over 15Y versus the NIFTY SMALLCAP 250
- Strong downside protection with downside capture of 78.86% and a maximum drawdown of only -0.24%, indicating resilience in weak markets
- Well-diversified 54-stock portfolio with no single holding above 4.6% of NAV and balanced sector exposure
- 1Y SIP XIRR of 16.99% trails the category average of 17.6%, and longer-horizon category SIP averages of 20-23% suggest room for improvement relative to peers
- Uneven calendar-year performance, including a flat 0.0% in 2023 and -5.08% in 2025, highlights return volatility typical of small caps
Generated on 30-10-2026, 2:13 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 | ₹12.69 L | 16.5% | -21.1% | 65.4% |
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 | 16.5% | 21.9% | 17.5% | -5.4% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 13.9% | 14.1% | -8.0% | 51.2% | 0.68 | 2.03 | 91% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +13.43 | 0.91 | 96.1% | 83.1% | 10.6% | -3.7% |
| 3 Years | +11.64 | 0.84 | 89.8% | 78.9% | 17.6% | 5.9% |
| 5 Years | +6.26 | 0.84 | 89.8% | 78.9% | 10.2% | 3.5% |
| 7 Years | +4.08 | 0.84 | 89.8% | 78.9% | 7.2% | 2.5% |
| 10 Years | +2.50 | 0.84 | 89.8% | 78.9% | 5.0% | 1.7% |
| 12 Years | +1.89 | 0.84 | 89.8% | 78.9% | 4.1% | 1.4% |
| 15 Years | +1.29 | 0.84 | 89.8% | 78.9% | 3.3% | 1.1% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Rubicon Research Limited | 3.84% |
| 2 | VA Tech Wabag Limited | 3.82% |
| 3 | CCL Products (India) Limited | 3.49% |
| 4 | Aditya Infotech Limited | 3.38% |
| 5 | Karur Vysya Bank Limited | 3.02% |
| 6 | Dr Agarwals Health Care Limited | 2.92% |
| 7 | Sky Gold And Diamonds Limited | 2.57% |
| 8 | Syrma SGS Technology Ltd | 2.52% |
| 9 | Rainbow Childrens Medicare Limited | 2.36% |
| 10 | Campus Activewear Limited | 2.20% |