The Wealth Company Small Cap Fund
Direct · GrowthAI Summary
The Wealth Company Small Cap Fund has underperformed the NIFTY SmallCap 250 benchmark across all measured periods, with a 1Y CAGR of 20.17% versus the benchmark's 24.39% and a 3Y CAGR of 6.31% versus 7.55%. Negative alpha at every horizon (ranging from -0.78% at 1Y to -1.65% at 15Y) indicates persistent underperformance after adjusting for risk. SIP XIRR data is not available, so a like-for-like comparison with category averages (e.g., 22.67% at 3Y) cannot be made.
The fund exhibits a low beta of 0.72 against the NIFTY SmallCap 250, meaning it moves less than the benchmark in both directions, with upside capture of 79.8% and downside capture of 83.83%. Current drawdown metrics are benign, showing a maximum drawdown of just -0.05% with a 10-day duration and zero drawdown events exceeding 10%. However, the slightly higher downside capture than upside capture suggests the fund gives up a bit more in declines than it gains in rallies relative to the benchmark.
The portfolio holds 54 stocks with a well-diversified top 10, where the largest position, Ather Energy, is only 2.61% of NAV, limiting single-stock concentration risk. Sector allocation is spread across Auto Components (8.5%), Electrical Equipment (7.8%), Capital Markets (5.9%), Consumer Durables (5.7%), and Retailing (5.4%), with no sector dominating. Holdings span diverse themes including EVs, healthcare, consumer retail, and industrial manufacturing, reflecting a broad small-cap mandate.
Direct comparison with category peers is limited because the fund's own SIP XIRR is unavailable, though category averages of 21.59% (1Y) and 22.67% (3Y) provide context for what peers have delivered. The fund's consistent negative alpha across 1Y to 15Y horizons suggests underperformance versus the benchmark is structural rather than a short-term anomaly. Its low beta positioning may appeal defensively, but it has not translated into superior risk-adjusted returns given the negative alpha.
This fund may suit investors seeking diversified small-cap exposure with lower volatility than the benchmark, given its beta of 0.72 and modest drawdown profile. A long time horizon of at least 5-7 years is appropriate for small-cap investing, and investors should tolerate periods of underperformance versus the benchmark. Those prioritizing benchmark-beating returns may want to compare against peers with stronger alpha records before committing.
- Highly diversified portfolio of 54 holdings with the top position at only 2.61% of NAV, minimizing single-stock risk
- Low beta of 0.72 with downside capture of 83.83%, offering a smoother ride than the benchmark in declines
- Low expense ratio of 0.49% for the direct plan, keeping costs competitive
- Broad sector diversification with the top sector (Auto Components) at just 8.5% of the portfolio
- Consistent negative alpha across all time horizons, from -0.78% at 1Y to -1.65% at 15Y, indicating persistent underperformance versus the NIFTY SmallCap 250
- Fund CAGR trails the benchmark in every measured period, including 20.17% vs 24.39% over 1Y and 6.31% vs 7.55% over 3Y
- Upside capture of 79.8% is lower than ideal, meaning the fund participates less in market rallies than the benchmark
Generated on 05-09-2026, 3:00 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 | +0.78 | 0.72 | 79.8% | 83.8% | 20.2% | 24.4% |
| 3 Years | -0.95 | 0.72 | 79.8% | 83.8% | 6.3% | 7.5% |
| 5 Years | -1.29 | 0.72 | 79.8% | 83.8% | 3.7% | 4.5% |
| 7 Years | -1.44 | 0.72 | 79.8% | 83.8% | 2.7% | 3.2% |
| 10 Years | -1.56 | 0.72 | 79.8% | 83.8% | 1.9% | 2.2% |
| 12 Years | -1.60 | 0.72 | 79.8% | 83.8% | 1.5% | 1.8% |
| 15 Years | -1.65 | 0.72 | 79.8% | 83.8% | 1.2% | 1.5% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Ather Energy Limited | 2.61% |
| 2 | Jupiter Life Line Hospitals Limited | 2.56% |
| 3 | Billionbrains Garage Ventures Ltd. | 2.54% |
| 4 | Cupid Ltd. | 2.29% |
| 5 | Senco Gold Limited | 2.29% |
| 6 | Sumitomo Chemical India Limited | 2.25% |
| 7 | Amber Enterprises India Limited | 2.07% |
| 8 | V-Mart Retail Limited | 2.01% |
| 9 | Jyoti Cnc Automation Ltd | 1.99% |
| 10 | URBAN CLUB | 1.96% |