Sundaram Small Cap Fund
Direct · GrowthAI Summary
Sundaram Small Cap Fund has delivered a 1Y SIP XIRR of 20.43% and a 3Y XIRR of 20.01%, broadly in line with the category average of 17.65% and 20.16% respectively. Over longer horizons, however, it trails peers, with 5Y, 7Y, and 10Y XIRR of 20.25%, 17.32%, and 18.28% versus category averages of 22.86%, 21.78%, and 20.82%. Against the NIFTY SMALLCAP 250, the fund shows consistent outperformance, generating positive alpha across all periods, including 6.26% over 1Y and 3.31% over 3Y.
The fund exhibits a beta below 1 across all periods (0.82 to 0.94), with downside capture consistently below upside capture — for example, 84.4% upside versus 80.72% downside over 3Y — indicating better-than-benchmark loss containment. It has experienced 7 drawdown events exceeding 10%, and the maximum drawdown took 799 days with a 405-day recovery, reflecting the extended drawdown cycles typical of small caps. Calmar ratios of 0.33 (3Y) and 0.30 (10Y) suggest moderate risk-adjusted returns relative to peak-to-trough losses.
The portfolio holds 70 stocks with a top holding, MTAR Technologies, at just 5.03% of NAV, indicating a well-diversified book with no single-stock concentration risk. Sector allocation is spread across Banks (8.7%), Auto Components (8.1%), Finance (7.0%), Electrical Equipment (6.9%), and Consumer Durables (6.3%), with meaningful exposure to industrials, IT, and consumer names. The top 10 holdings together account for roughly 28.8% of NAV, balancing diversification with conviction positions.
The fund is a strong short-to-medium-term performer, beating the category on 1Y XIRR (20.43% vs 17.65%) but lagging on 5Y, 7Y, and 10Y XIRR by roughly 2.5 to 4 percentage points. Its calendar-year record is volatile, ranging from 110.01% in 2014 and 60.17% in 2021 to -28.64% in 2018 and -5.48% in 2019. Persistent positive alpha versus the NIFTY SMALLCAP 250 across 1Y to 15Y periods demonstrates reliable benchmark-relative skill even where category-relative returns are middling.
This fund suits investors with high risk tolerance and a horizon of at least 7 years, given the extended drawdown durations and sharp calendar-year swings inherent to small caps. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, ideally through SIPs to smooth volatility. Investors should be prepared for periods of significant underperformance, such as the -28.64% calendar-year return in 2018.
- Consistent positive alpha versus the NIFTY SMALLCAP 250 across all measured periods from 1Y to 15Y, including 6.26% over 1Y and 3.93% over 7Y
- Favorable asymmetry with downside capture below upside capture in every period (e.g., 82.85% upside vs 79.02% downside over 5Y), aided by beta below 0.9
- Well-diversified 70-stock portfolio with the largest holding at only 5.03% of NAV and no sector exceeding 8.7%
- Long-term SIP XIRR lags the category, trailing the 5Y, 7Y, and 10Y category averages by approximately 2.6 to 4.5 percentage points
- History of severe calendar-year losses, including -28.64% in 2018, with 7 drawdown events exceeding 10% and a maximum drawdown recovery spanning 405 days
Generated on 26-10-2026, 2:16 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 | ₹12.94 L | 27.1% | -62.0% | 179.8% |
| 3 Years | ₹36.00 L | ₹48.84 L | 18.5% | -33.5% | 49.7% |
| 5 Years | ₹60.00 L | ₹96.23 L | 16.9% | -18.3% | 36.3% |
| 7 Years | ₹84.00 L | ₹1.59 Cr | 17.2% | -5.1% | 27.9% |
| 10 Years | ₹1.20 Cr | ₹3.12 Cr | 18.3% | 14.8% | 21.5% |
| 12 Years | ₹1.44 Cr | ₹4.40 Cr | 17.7% | 14.3% | 21.1% |
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 | 27.1% | 21.9% | 17.5% | +5.2% |
| 3 Years | 18.5% | 15.2% | 20.1% | +3.3% |
| 5 Years | 16.9% | 14.3% | 22.8% | +2.7% |
| 7 Years | 17.2% | 14.4% | 21.8% | +2.9% |
| 10 Years | 18.3% | 14.0% | 20.8% | +4.2% |
| 12 Years | 17.7% | 13.5% | 19.2% | +4.2% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 24.9% | 15.4% | -40.1% | 141.3% | 0.50 | 1.72 | 77% | — | — |
| 3 Years | 19.0% | 21.1% | -16.4% | 47.5% | 0.88 | 2.49 | 88% | — | — |
| 5 Years | 17.0% | 16.9% | -6.0% | 37.7% | 1.06 | 4.96 | 95% | — | — |
| 10 Years | 17.5% | 16.4% | 12.1% | 23.6% | 3.63 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +5.91 | 0.93 | 94.7% | 88.1% | 2.9% | -3.7% |
| 3 Years | +3.30 | 0.83 | 84.3% | 80.6% | 14.1% | 11.7% |
| 5 Years | +3.25 | 0.82 | 82.8% | 79.0% | 14.3% | 12.1% |
| 7 Years | +3.57 | 0.86 | 85.8% | 81.8% | 21.4% | 19.7% |
| 10 Years | +2.08 | 0.86 | 86.3% | 83.5% | 13.7% | 12.4% |
| 12 Years | +2.55 | 0.88 | 88.1% | 85.0% | 14.5% | 12.7% |
| 15 Years | +3.52 | 0.89 | 90.1% | 86.0% | 15.6% | 12.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | MTAR Technologies Ltd | 5.03% |
| 2 | Rate Gain Travel Technologies Ltd | 3.18% |
| 3 | S.J.S. Enterprises Ltd | 3.17% |
| 4 | Eternal Ltd (Previously Zomato Ltd) | 3.16% |
| 5 | Aster DM Healthcare Ltd | 2.83% |
| 6 | Affle (India) Ltd | 2.62% |
| 7 | PNB Housing Finance Ltd | 2.61% |
| 8 | Safari Industries (India) Ltd | 2.24% |
| 9 | DCB Bank Ltd | 2.09% |
| 10 | Interglobe Aviation Ltd | 2.08% |