Motilal Oswal Small Cap Fund
Direct · GrowthAI Summary
Motilal Oswal Small Cap Fund has delivered strong lump-sum outperformance versus the NIFTY SMALLCAP 250 across all periods, with a 1Y Fund CAGR of 24.85% against the benchmark's 8.7% and a 1Y alpha of 16.31%. However, its 1Y SIP XIRR of 14.27% trails the category average SIP XIRR of 21.59%, indicating weaker returns for systematic investors. Calendar year returns are uneven, ranging from 47.62% in 2024 to -5.08% in 2025.
The fund shows a favorable risk profile with a maximum drawdown of just -0.24%, only one drawdown event exceeding 10%, and a 1Y Calmar ratio of 0.5495. Downside capture of 85.0% (1Y) and 79.42% (long-term) against a beta below 1 suggests the fund has historically protected capital better than the benchmark in falling markets. The 430-day recovery from the maximum drawdown, however, indicates patience was required after drawdown episodes.
The portfolio holds 54 stocks with the top 10 accounting for roughly 35% of NAV, led by CCL Products (4.6%) and Karur Vysya Bank (4.3%). Sector allocation is well spread, with the top five sectors — Auto Components (8.4%), Healthcare Services (8.2%), Consumer Durables (7.9%), Banks (7.4%), and IT-Software (6.1%) — each below 9%. This diversified, mid-sized position approach reduces single-stock and single-sector concentration risk.
On lump-sum CAGR, the fund has consistently beaten its benchmark across 1Y to 15Y horizons, with alpha remaining positive even over 15 years (1.26%). On SIP XIRR, however, the 1Y figure of 14.27% sits well below the category averages of 21.59% (1Y) and 22.67% (3Y), suggesting peers have rewarded SIP investors more. The fund's edge is most pronounced in recent periods, with alpha declining from 16.31% (1Y) to 2.44% (10Y).
This fund suits investors with a high risk tolerance and a long time horizon of at least 5-7 years, given small cap volatility and the uneven calendar-year returns. It is appropriate as a satellite allocation for investors seeking benchmark-beating lump-sum growth with downside protection characteristics. Investors relying primarily on SIP returns should note the current gap versus category averages and consider it as part of a broader small cap allocation.
- Consistent long-term outperformance with positive alpha across all periods from 1Y (16.31%) to 15Y (1.26%) versus the NIFTY SMALLCAP 250
- Strong downside protection with downside capture of 79.42% over long horizons and only one drawdown event exceeding 10%
- Well-diversified 54-stock portfolio with no single holding above 4.6% of NAV and top five sectors each under 9%
- 1Y SIP XIRR of 14.27% significantly lags the category average SIP XIRR of 21.59%, indicating weaker systematic investment returns
- Highly uneven calendar year performance, swinging from 47.62% in 2024 to -5.08% in 2025, reflecting small cap volatility
Generated on 10-09-2026, 2:58 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 | ₹12.61 L | 14.3% | -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 | 14.3% | 22.0% | 19.2% | -7.7% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 13.0% | 12.6% | -8.0% | 51.2% | 0.59 | 1.70 | 90% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +16.31 | 0.93 | 100.0% | 85.0% | 24.9% | 8.7% |
| 3 Years | +11.62 | 0.84 | 90.7% | 79.4% | 20.3% | 9.1% |
| 5 Years | +6.19 | 0.84 | 90.7% | 79.4% | 11.7% | 5.4% |
| 7 Years | +4.02 | 0.84 | 90.7% | 79.4% | 8.3% | 3.8% |
| 10 Years | +2.44 | 0.84 | 90.7% | 79.4% | 5.7% | 2.6% |
| 12 Years | +1.85 | 0.84 | 90.7% | 79.4% | 4.7% | 2.2% |
| 15 Years | +1.26 | 0.84 | 90.7% | 79.4% | 3.8% | 1.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | CCL Products India Ltd | 4.60% |
| 2 | Karur Vysya Bank Ltd | 4.30% |
| 3 | Rubicon Research Limited | 3.78% |
| 4 | Dr Agarwals Health Care Limited | 3.31% |
| 5 | VA Tech Wabag Ltd | 3.29% |
| 6 | Aditya Infotech Limited | 3.24% |
| 7 | V2 Retail Ltd | 2.89% |
| 8 | Campus Activewear Limited | 2.87% |
| 9 | Shaily Engineering Plastics Limited | 2.62% |
| 10 | Vijaya Diagnostic Centre Limited | 2.56% |