The Wealth Company Small Cap Fund
Direct · GrowthAI Summary
The Wealth Company Small Cap Fund has consistently underperformed the NIFTY SmallCap 250 benchmark across all periods, with a 1Y Fund CAGR of 15.96% versus the benchmark's 19.51%, and negative alpha ranging from -0.693% (1Y) to -1.3739% (15Y). The fund's low beta of 0.7804 partially explains the lag in rising markets, but the shortfall persists across both strong and weak periods. SIP XIRR data is not available, so a like-for-like comparison with the category average SIP XIRR (17.78% for 1Y) cannot be made.
The fund exhibits very low realized drawdown risk, with a maximum drawdown of just -0.05321% lasting 10 days and zero drawdown events exceeding 10%. However, this unusually benign drawdown profile likely reflects a short observation window rather than structural resilience, given small caps' inherent volatility. The downside capture ratio of 85.87% versus an upside capture of 81.55% indicates the fund loses slightly more in declines than it gains in rallies relative to the benchmark, a mildly unfavorable asymmetry.
The portfolio is well diversified with 49 holdings, and the top 10 positions are modestly sized at 2.1% to 2.91% of NAV each, avoiding single-stock concentration. Sector allocation is spread across Auto Components (8.4%), Capital Markets (8.2%), Electrical Equipment (6.8%), Consumer Durables (6.4%), and Healthcare Services (4.8%), with no sector dominating. Holdings span capital markets, manufacturing, healthcare, and defense themes such as Zen Technologies and Azad Engineering, offering broad small-cap exposure.
The fund trails its benchmark across every measured window from 1Y to 15Y, suggesting persistent rather than cyclical underperformance. With negative alpha at all horizons and an upside capture below 82%, the fund has not demonstrated an ability to add value over the index despite its low expense ratio of 0.49%. Without available SIP XIRR data, its standing versus category peers on the primary investor return metric cannot be fully assessed.
This fund may suit conservative small-cap investors who prioritize lower volatility and benchmark-relative downside protection, given its beta of 0.7804 and low downside capture. A long time horizon of at least 5 to 7 years is essential, as small-cap returns are highly cyclical and the 3Y CAGR of 5.06% shows recent periods can be weak. Investors should have high risk tolerance and should weigh the fund's consistent benchmark underperformance against index or ETF alternatives in the small-cap category.
- Low expense ratio of 0.49% for a small-cap active fund keeps costs competitive
- Well-diversified portfolio of 49 holdings with no stock above 2.91% of NAV and no sector above 8.4%
- Low beta of 0.7804 and downside capture of 85.87% offer relatively softer falls than the benchmark in declining markets
- Persistent negative alpha across all periods from 1Y (-0.693%) to 15Y (-1.3739%), indicating consistent underperformance versus the NIFTY SmallCap 250
- Upside capture of 81.55% is lower than downside capture of 85.87%, an unfavorable asymmetry that compounds the benchmark lag
- Missing SIP XIRR and rolling return data prevents a full like-for-like evaluation against category averages
Generated on 20-10-2026, 3:05 AM. Verify before investing.
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.
Not enough data to compute SIP returns.
Not enough data to compute rolling returns.
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -0.69 | 0.78 | 81.5% | 85.9% | 16.0% | 19.5% |
| 3 Years | -1.14 | 0.78 | 81.5% | 85.9% | 5.1% | 6.1% |
| 5 Years | -1.25 | 0.78 | 81.5% | 85.9% | 3.0% | 3.6% |
| 7 Years | -1.30 | 0.78 | 81.5% | 85.9% | 2.1% | 2.6% |
| 10 Years | -1.34 | 0.78 | 81.5% | 85.9% | 1.5% | 1.8% |
| 12 Years | -1.36 | 0.78 | 81.5% | 85.9% | 1.2% | 1.5% |
| 15 Years | -1.37 | 0.78 | 81.5% | 85.9% | 1.0% | 1.2% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Motilal Oswal Financial Services | 2.91% |
| 2 | Jyoti Cnc Automation Ltd | 2.54% |
| 3 | Jupiter Life Line Hospitals Limited | 2.47% |
| 4 | ZEN TECHNOLOGIES LIMITED | 2.39% |
| 5 | Amber Enterprises India Limited | 2.33% |
| 6 | Jindal Steel Limited | 2.31% |
| 7 | Metropolis Healthcare Limited | 2.28% |
| 8 | ETHOS LIMITED | 2.26% |
| 9 | Amara Raja Batteries Ltd | 2.19% |
| 10 | Azad Engineering Limited | 2.10% |