Union Small Cap Fund
Direct · GrowthAI Summary
Union Small Cap Fund has delivered strong long-term SIP returns, with 5Y XIRR of 21.73% and 10Y XIRR of 19.81%, though it trails the category average SIP XIRR at 3Y (19.36% vs 20.25%), 5Y (21.73% vs 22.89%), and 10Y (19.81% vs 20.83%). Against the NIFTY SmallCap 250 benchmark, the fund has consistently outperformed on a lump-sum basis, with positive alpha across all windows (e.g., 5Y alpha of 4.34% and 10Y alpha of 4.96%). The 1Y XIRR of 19.54% also beats the category average of 17.78%, indicating recent momentum.
The fund's beta declines from 1.01 over 1Y to 0.83 over 12Y, showing progressively lower market sensitivity than the benchmark, with downside capture improving from 91.2% to 78.68% over longer horizons. The maximum drawdown duration of 798 days with a 261-day recovery reflects the extended recovery periods typical of small caps, and 8 drawdown events exceeding 10% confirm meaningful volatility. Calmar ratios of roughly 0.37-0.40 across horizons indicate stable but moderate risk-adjusted returns.
The 72-stock portfolio is well diversified, with the top holding Navin Fluorine at just 3.67% and the top ten totaling under 27% of NAV. Sector exposure is balanced across Auto Components (9.4%), Industrial Products (9.1%), Electrical Equipment (9.0%), Banks (8.5%), and Pharmaceuticals (8.4%), avoiding concentration risk. Holdings like Karur Vysya Bank and Ujjivan Small Finance Bank add financial exposure alongside manufacturing and capital markets names.
The fund sits slightly below category average SIP XIRR over 3Y, 5Y, and 10Y windows, suggesting mid-tier relative performance among small cap peers despite strong absolute returns. However, its consistent positive alpha versus the benchmark across all measured periods (3.27% to 16.51%) demonstrates reliable benchmark outperformance. Calendar year returns show high dispersion, from 61.94% in 2021 to -19.68% in 2018, typical of the small cap category.
This fund suits investors with high risk tolerance and a long time horizon of at least 7-10 years, given the 798-day maximum drawdown duration and the volatility inherent in small caps. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, ideally through SIPs to average out entry points. Investors should be prepared for sharp interim declines, such as the -19.68% calendar year return in 2018.
- Consistent positive alpha versus the NIFTY SmallCap 250 benchmark across all periods, including 5.42% over 7Y and 4.96% over 10Y
- Declining beta (0.83 at 12Y) and low downside capture (78.68% at 12Y) indicate better downside protection than the benchmark
- Well-diversified 72-stock portfolio with no single holding above 3.67% and balanced sector allocation
- SIP XIRR trails the category average over 3Y (19.36% vs 20.25%), 5Y (21.73% vs 22.89%), and 10Y (19.81% vs 20.83%) horizons
- Long maximum drawdown duration of 798 days with 8 drawdown events exceeding 10% highlights significant volatility and extended recovery periods
Generated on 17-10-2026, 4:54 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 | ₹12.83 L | 19.3% | -49.5% | 113.3% |
| 3 Years | ₹36.00 L | ₹46.16 L | 18.4% | -23.4% | 51.8% |
| 5 Years | ₹60.00 L | ₹99.86 L | 19.1% | -11.6% | 34.7% |
| 7 Years | ₹84.00 L | ₹1.80 Cr | 21.9% | 15.2% | 28.7% |
| 10 Years | ₹1.20 Cr | ₹3.36 Cr | 19.8% | 16.2% | 22.6% |
| 12 Years | ₹1.44 Cr | ₹4.77 Cr | 18.7% | 17.7% | 19.5% |
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 | 19.3% | 21.9% | 17.8% | -2.6% |
| 3 Years | 18.4% | 15.2% | 20.2% | +3.2% |
| 5 Years | 19.1% | 14.3% | 22.9% | +4.8% |
| 7 Years | 21.9% | 14.4% | 21.8% | +7.5% |
| 10 Years | 19.8% | 14.0% | 20.8% | +5.8% |
| 12 Years | 18.7% | 13.5% | 19.2% | +5.2% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 18.0% | 14.5% | -28.3% | 116.8% | 0.44 | 1.34 | 78% | — | — |
| 3 Years | 17.4% | 18.5% | -9.3% | 43.1% | 0.93 | 3.70 | 94% | — | — |
| 5 Years | 17.6% | 17.2% | -3.4% | 35.7% | 1.22 | 6.82 | 98% | — | — |
| 10 Years | 16.5% | 16.7% | 12.8% | 18.5% | 8.21 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY SMALLCAP 250
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +14.84 | 1.01 | 106.0% | 92.3% | 17.9% | 3.0% |
| 3 Years | +3.27 | 0.94 | 94.3% | 91.1% | 15.2% | 12.3% |
| 5 Years | +4.12 | 0.88 | 88.7% | 84.4% | 15.5% | 12.0% |
| 7 Years | +5.17 | 0.87 | 87.2% | 82.2% | 24.7% | 21.5% |
| 10 Years | +4.72 | 0.84 | 84.1% | 78.9% | 17.0% | 13.3% |
| 12 Years | +3.89 | 0.83 | 83.3% | 78.8% | 16.3% | 13.6% |
| 15 Years | +3.15 | 0.83 | 82.9% | 78.3% | 13.3% | 10.8% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Navin Fluorine International Ltd. | 3.67% |
| 2 | Karur Vysya Bank Ltd. | 3.36% |
| 3 | Gabriel India Ltd. | 3.35% |
| 4 | Multi Commodity Exchange of India Ltd. | 3.16% |
| 5 | GE Vernova T&D India Ltd. | 2.96% |
| 6 | S.J.S. Enterprises Ltd. | 2.77% |
| 7 | Kirloskar Oil Engines Ltd. | 2.68% |
| 8 | Hindustan Copper Ltd. | 2.42% |
| 9 | Azad Engineering Ltd. | 2.41% |
| 10 | Ujjivan Small Finance Bank Ltd. | 2.35% |