Tata Small Cap Fund
Direct · GrowthAI Summary
Tata Small Cap Fund has delivered strong SIP XIRR of 27.36% over 3Y and 28.26% over 5Y, comfortably ahead of the category averages of 22.67% and 22.02% respectively. However, its 1Y SIP XIRR of 12.2% trails the category average of 21.59%, and its lump-sum CAGR has lagged the NIFTY SmallCap 250 over the past 1Y (-0.56% vs 8.7%) and 3Y (13.39% vs 17.4%). Over longer horizons the fund has outperformed the benchmark, with alpha of 4.88% over 7Y and 4.08% over 10Y.
The fund exhibits a defensive risk profile for a small cap fund, with beta of roughly 0.79-0.93 across horizons and downside capture consistently below upside capture (e.g., 79.7% upside vs 73.52% downside over 10Y). Recent drawdown metrics are mild, with a maximum drawdown of just -0.37% that recovered in 175 days, though the fund has experienced 5 drawdown events exceeding 10% historically. Calmar ratios of 0.73-0.80 over 1Y-5Y indicate reasonable risk-adjusted returns, though the 7Y Calmar of 0.59 is weaker.
The portfolio holds 56 stocks with a top-10 concentration of about 36%, led by Kirloskar Pneumatic at 6.55% and Usha Martin at 4.6%, indicating moderate single-stock concentration. Industrial Products dominates sector allocation at 20.4%, followed by Chemicals & Petrochemicals at 8.6%, giving the fund a pronounced manufacturing and industrials tilt. Exposure is otherwise spread across banks, consumer durables, pharma, and retailing, providing reasonable diversification beyond the top sectors.
The fund's 3Y, 5Y, and 7Y SIP XIRR figures all exceed category averages by roughly 4-6 percentage points, positioning it in the upper tier of small cap peers. Its calendar year record shows strong consistency in up-markets, including 72.46% in 2021 and over 32% in both 2023 and 2024, though 2025's -11.96% return reflects small cap volatility. The combination of below-benchmark downside capture and long-term alpha suggests a disciplined, downside-aware strategy that has compounded well over extended periods.
This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, as small cap returns are volatile over shorter periods and the fund's recent 1Y performance has been below both benchmark and category. Its lower beta and downside capture make it relatively suitable for investors who want small cap exposure with somewhat tempered volatility. SIP investors seeking long-term wealth creation, who can tolerate interim drawdowns like the 2025 decline of nearly 12%, are the ideal candidates.
- SIP XIRR of 27.36% (3Y) and 28.26% (5Y) significantly outperforms category averages of 22.67% and 22.02%
- Consistent long-term alpha versus the NIFTY SmallCap 250, including 4.88% over 7Y and 4.08% over 10Y
- Defensive characteristics with downside capture of 73.52% over 10Y, below its upside capture of 79.7%
- Recent underperformance versus benchmark and category, with 1Y fund CAGR of -0.56% against the benchmark's 8.7% and 1Y SIP XIRR of 12.2% versus the category's 21.59%
- Heavy sector concentration in Industrial Products at 20.4% of the portfolio, exposing investors to cyclicality in industrials
Generated on 06-09-2026, 7:49 PM. 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 | ₹13.18 L | 27.7% | -53.1% | 126.1% |
| 3 Years | ₹36.00 L | ₹55.10 L | 28.2% | -7.1% | 53.5% |
| 5 Years | ₹60.00 L | ₹1.15 Cr | 26.8% | 6.0% | 41.4% |
| 7 Years | ₹84.00 L | ₹1.73 Cr | 21.0% | 15.7% | 26.0% |
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 | 27.7% | 22.0% | 21.6% | +5.8% |
| 3 Years | 28.2% | 15.3% | 22.7% | +12.9% |
| 5 Years | 26.8% | 14.3% | 22.0% | +12.5% |
| 7 Years | 21.0% | 14.4% | 21.8% | +6.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 26.6% | 17.2% | -29.2% | 116.7% | 0.63 | 2.70 | 81% | — | — |
| 3 Years | 29.0% | 29.4% | 10.4% | 50.4% | 2.52 | — | 100% | — | — |
| 5 Years | 29.2% | 30.2% | 14.9% | 41.2% | 3.39 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -9.11 | 0.93 | 85.6% | 93.7% | -0.6% | 8.7% |
| 3 Years | -2.49 | 0.86 | 83.5% | 84.1% | 13.4% | 17.4% |
| 5 Years | +1.30 | 0.82 | 81.3% | 78.9% | 15.6% | 16.0% |
| 7 Years | +4.88 | 0.81 | 81.3% | 76.2% | 24.0% | 22.1% |
| 10 Years | +4.08 | 0.79 | 79.7% | 73.5% | 16.1% | 13.4% |
| 12 Years | +3.11 | 0.79 | 79.7% | 73.5% | 13.2% | 11.1% |
| 15 Years | +2.15 | 0.79 | 79.7% | 73.5% | 10.4% | 8.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | KIRLOSKAR PNEUMATIC COMPANY LTD | 6.55% |
| 2 | USHA MARTIN LTD | 4.60% |
| 3 | IDFC FIRST BANK LTD | 3.79% |
| 4 | GODREJ INDUSTRIES LTD | 3.70% |
| 5 | SUDARSHAN CHEMICAL INDUSTRIES LTD | 3.51% |
| 6 | TEGA INDUSTRIES LTD | 3.45% |
| 7 | WOCKHARDT LTD | 3.25% |
| 8 | CELLO WORLD LTD | 2.84% |
| 9 | CARTRADE TECH LTD | 2.28% |
| 10 | CARBORUNDUM UNIVERSAL LTD | 2.25% |