Nippon India Small Cap Fund
Direct · GrowthAI Summary
Nippon India Small Cap Fund has delivered strong SIP XIRR across all horizons, with 24.06% over 5Y and 24.80% over 10Y, consistently outpacing the category average SIP XIRR of 22.02% and 20.91% respectively. Against the NIFTY SMALLCAP 250 benchmark, the fund has generated positive alpha at every horizon, rising from 2.26% over 3Y to 8.43% over 10Y. The 1Y XIRR of 32.81% also leads the category average of 21.59%, indicating recent momentum remains intact.
The fund shows a beta of roughly 0.86-0.89 across horizons, meaning it moves less than the benchmark in both directions, with downside capture of 82-85% versus upside capture of 86-92% — a favorable asymmetry. It has experienced 8 drawdown events exceeding 10%, and the maximum drawdown took 799 days with a 265-day recovery, reflecting the prolonged pain typical of small-cap investing. Calmar ratios between 0.47 and 0.64 across horizons indicate reasonable but not exceptional risk-adjusted returns for the category.
The portfolio is well diversified across 238 holdings, with the top position (HDFC Bank) at just 1.89% of NAV, limiting single-stock risk. Sector exposure is spread across Electrical Equipment (8.1%), Banks (7.7%), Auto Components (7.5%), Consumer Durables (6.5%), and Industrial Products (6.5%), with no sector dominating. The tilt toward electrical equipment names like BHEL, Apar Industries, and TD Power Systems suggests a capex and power-cycle theme within a broadly diversified book.
The fund beats the category average SIP XIRR at every measured horizon, from 1Y (32.81% vs 21.59%) to 12Y (23.59% vs 19.35%), demonstrating sustained outperformance rather than a short-term spike. Calendar year returns show strong consistency in up-markets (97.57% in 2014, 74.12% in 2021, 63.80% in 2017) though it has had losing years including -15.73% in 2018 and -4.70% in 2025. A low expense ratio of 0.67% for a small-cap fund supports its net-of-cost edge over peers.
This fund suits investors with high risk tolerance and a horizon of at least 7-10 years, given the extended drawdown durations and the volatility inherent in small caps. 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 prepared for sharp calendar-year swings, including potential multi-year flat or negative stretches like 2018-2019 and 2025.
- Consistent alpha over the NIFTY SMALLCAP 250 benchmark at every horizon, reaching 8.43% over 10Y and 9.13% over 15Y
- SIP XIRR beats the category average at all horizons, including 24.06% over 5Y versus the category's 22.02%
- Favorable capture asymmetry with downside capture of 82-85% against upside capture of 86-92%, plus a low 0.67% expense ratio and 238-stock diversification
- Eight drawdown events exceeding 10% and a maximum drawdown lasting 799 days with a 265-day recovery highlight severe and prolonged downside episodes
- Negative calendar-year returns in 2018 (-15.73%), 2019 (-1.80%), and 2025 (-4.70%) show the fund can underperform for extended stretches
Generated on 04-09-2026, 2:48 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 | ₹13.21 L | 32.8% | -59.8% | 188.9% |
| 3 Years | ₹36.00 L | ₹53.68 L | 25.1% | -28.0% | 57.1% |
| 5 Years | ₹60.00 L | ₹1.13 Cr | 24.1% | -10.1% | 44.7% |
| 7 Years | ₹84.00 L | ₹2.00 Cr | 24.0% | 3.1% | 34.8% |
| 10 Years | ₹1.20 Cr | ₹4.37 Cr | 24.8% | 19.7% | 28.9% |
| 12 Years | ₹1.44 Cr | ₹6.64 Cr | 23.6% | 19.7% | 28.5% |
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 | 32.8% | 22.0% | 21.6% | +10.8% |
| 3 Years | 25.1% | 15.3% | 22.7% | +9.8% |
| 5 Years | 24.1% | 14.3% | 22.0% | +9.8% |
| 7 Years | 24.0% | 14.3% | 21.8% | +9.6% |
| 10 Years | 24.8% | 14.0% | 20.9% | +10.8% |
| 12 Years | 23.6% | 13.5% | 19.4% | +10.1% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 31.0% | 20.2% | -36.3% | 153.7% | 0.66 | 3.17 | 82% | — | — |
| 3 Years | 25.9% | 25.7% | -8.3% | 54.5% | 1.46 | 8.58 | 96% | — | — |
| 5 Years | 24.5% | 23.3% | 2.3% | 45.0% | 1.90 | 62.68 | 100% | — | — |
| 10 Years | 24.9% | 24.1% | 19.7% | 31.8% | 5.60 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +3.63 | 0.86 | 86.5% | 82.1% | 12.0% | 8.7% |
| 3 Years | +2.26 | 0.85 | 85.2% | 82.5% | 18.0% | 17.4% |
| 5 Years | +5.87 | 0.86 | 88.6% | 83.0% | 20.6% | 16.0% |
| 7 Years | +7.39 | 0.89 | 91.2% | 84.9% | 27.8% | 22.1% |
| 10 Years | +8.43 | 0.88 | 91.3% | 83.8% | 21.9% | 14.3% |
| 12 Years | +8.69 | 0.88 | 91.6% | 84.0% | 21.8% | 14.0% |
| 15 Years | +9.13 | 0.87 | 90.8% | 81.9% | 21.7% | 13.5% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Limited | 1.89% |
| 2 | Bharat Heavy Electricals Limited | 1.78% |
| 3 | Apar Industries Limited | 1.53% |
| 4 | TD Power Systems Limited | 1.38% |
| 5 | Karur Vysya Bank Limited | 1.38% |
| 6 | State Bank of India | 1.30% |
| 7 | Zydus Wellness Limited | 1.25% |
| 8 | Acme Solar Holdings Ltd | 1.12% |
| 9 | Sai Life Sciences Limited | 1.09% |
| 10 | Kirloskar Brothers Limited | 1.07% |