The ITI Small Cap Fund is an open-ended equity mutual fund that primarily invests in small-cap companies, aiming for long-term capital appreciation. Launched on February 17, 2020, it is managed by ITI Mutual Fund.
Fund Overview
- Fund Type: Equity – Small Cap
- Benchmark: NIFTY Smallcap 250 Total Return Index
- Fund Managers: Dhimant Shah (since Aug 2022) and Rohan Korde (since Dec 2022)
- Risk Level: Very High
- Inception Date: February 17, 2020
- Assets Under Management (AUM): Approximately ₹2,355 crore (as of September 2024)
Fund Managers of ITI Small Cap Fund
As of April 2025, the ITI Small Cap Fund is managed by three experienced professionals: Dhimant Shah, Rohan Korde, and Rajesh Bhatia.
1) Dhimant Shah – Lead Fund Manager (Since August 8, 2022)
- Education: B.Com (Hons), Chartered Accountant
- Experience: Over 26 years in equity research and fund management
- Previous Associations: Principal Mutual Fund, HSBC AMC, Reliance Mutual Fund, IL&FS AMC
- Other Funds Managed: ITI Multi Cap Fund, ITI Mid Cap Fund, ITI ELSS Tax Saver Fund, ITI Pharma and Healthcare Fund, ITI Value Fund, ITI Flexi Cap Fund, ITI Focused Equity Fund
2) Rohan Korde – Co-Fund Manager
- Education: Masters in Management Studies (Finance), Bachelor of Commerce
- Experience: Over 17 years in the financial sector
- Previous Associations: BOB Capital Markets (Vice President)
- Other Funds Managed: ITI Value Fund, ITI Pharma and Healthcare Fund, ITI Banking and Financial Services Fund, ITI Large Cap Fund, ITI Mid Cap Fund, ITI Multi Cap Fund, ITI Flexi Cap Fund, ITI Focused Equity Fund, ITI Large & Mid Cap Fund, ITI Arbitrage Fund
Rajesh Bhatia – Co-Fund Manager (Since June 2024)
- Education: B.Com, ACMA, CFA
- Experience: Extensive experience in investment management
- Previous Associations: The Investment Trust Of India Ltd, Simto Investment Company Ltd, ProAlpha Systematic Capital, Reliance Capital Asset Management Ltd
- Other Funds Managed: ITI Liquid Fund, ITI Multi Cap Fund, ITI Arbitrage Fund, ITI Overnight Fund, ITI Balanced Advantage Fund, ITI Large Cap Fund, ITI Banking and PSU Debt Fund, ITI Mid Cap Fund, ITI Ultra Short Duration Fund, ITI Value Fund, ITI Dynamic Bond Fund, ITI Pharma and Healthcare Fund, ITI Banking and Financial Services Fund, ITI Flexi Cap Fund, ITI Focused Equity Fund
ITI Small Cap Fund Share Price
As of April 11, 2025, the Net Asset Value (NAV) of the ITI Small Cap Fund is as follows:
- Direct Plan – Growth Option: ₹27.5709
ITI Small Cap Fund Portfolio
As of February 28, 2025, the ITI Small Cap Fund maintains a diversified portfolio with a focus on small-cap companies, aiming for long-term capital appreciation. Here’s an overview of its portfolio:
Top 10 Equity Holdings
| Company | Sector | % of Assets |
|---|---|---|
| PG Electroplast Ltd. | Consumer Electronics | 3.62% |
| Ami Organics Ltd. | Pharmaceuticals | 2.57% |
| Multi Commodity Exchange of India Ltd. | Exchange & Data Platform | 2.03% |
| BSE Ltd. | Exchange & Data Platform | 1.95% |
| Dixon Technologies (India) Ltd. | Consumer Electronics | 1.78% |
| Radico Khaitan Ltd. | Breweries & Distilleries | 1.75% |
| Sun Pharmaceutical Industries Ltd. | Pharmaceuticals | 1.73% |
| Kirloskar Pneumatic Co. Ltd. | Industrial Machinery | 1.70% |
| Karur Vysya Bank Ltd. | Private Sector Bank | 1.67% |
| Blue Star Ltd. | Household Appliances | 1.61% |
These top 10 holdings constitute approximately 20.41% of the total portfolio.
Sector Allocation
The fund’s investments are spread across various sectors:
- Capital Goods: 17.84%
- Consumer Durables: 5.56%
- Pharmaceuticals: 4.96%
- Construction: 2.05%
- Chemicals: 4.96%
- Consumer Services: 3.51%
- Fast Moving Consumer Goods (FMCG): 3.59%
This diversified sectoral approach helps in mitigating risks associated with specific industries.
Market Capitalization Breakdown
The fund’s equity investments are distributed among different market capitalizations:
- Small Cap Stocks: Approximately 39.34%
- Mid Cap Stocks: Approximately 9.61%
- Large Cap Stocks: Approximately 3.12%
This allocation emphasizes the fund’s focus on small-cap companies while maintaining exposure to mid and large-cap stocks for balance.
Asset Allocation
The fund’s assets are allocated as follows:
- Equity: Approximately 95.37%
- Cash & Equivalents: Approximately 4.24%
- Mutual Funds: Approximately 0.39%
This high equity allocation aligns with the fund’s objective of capital growth through investments in small-cap companies.
ITI Small Cap Fund Returns
As of April 2025, the ITI Small Cap Fund has demonstrated notable performance across various timeframes. Below is a detailed overview of its returns:
ITI Small Cap Fund Returns
| Period | Direct Plan – Growth | Regular Plan – Growth |
| 1 Year | 57.41% | 54.71% |
| 3 Years CAGR | 24.25% | 21.94% |
| Since Inception CAGR | 27.46% | 24.94% |
SIP Performance (Assuming ₹10,000 Monthly Investment)
| Period | Direct Plan – Growth | Regular Plan – Growth |
| 1 Year | ₹1,39,495 (31.67%) | ₹1,38,164 (29.43%) |
| 3 Years | ₹6,30,409 (40.07%) | ₹6,11,252 (37.66%) |
| Since Inception | ₹12,87,988 (33.90%) | ₹12,18,429 (31.44%) |
The fund has consistently outperformed its benchmarks, especially in the 1-year and 3-year periods. Its strong performance can be attributed to effective stock selection and a focus on high-growth small-cap companies.
ITI Small Cap Fund – Regular Plan Growth Returns
| Period | Absolute Returns | Annualized Returns |
| 1 Year | 46.30% | 46.00% |
| 2 Years | 97.90% | 40.61% |
| 3 Years | 71.21% | 19.61% |
| Since Inception (Feb 17, 2020) | 182.57% | 24.47% |
SIP Performance (Assuming ₹1,000 Monthly Investment)
| Period | Total Investment | Latest Value | Absolute Returns | Annual Returns |
| 1 Year | ₹12,000 | ₹13,946.84 | 16.22% | 31.14% |
| 2 Years | ₹24,000 | ₹35,731.58 | 48.88% | 43.42% |
| 3 Years | ₹36,000 | ₹60,027.38 | 66.74% | 36.10% |
Suitability
The ITI Small Cap Fund – Regular Plan – Growth is suitable for investors:
- Seeking long-term capital appreciation.
- Willing to accept higher volatility associated with small-cap investments.
- Planning to invest for a horizon of at least 3–5 years.
Strengths of ITI Small Cap Fund
1) Strong Recent Performance
- Delivered high 1-year and 3-year returns, especially in the direct plan.all Cap Fund
- Has outperformed the Nifty Smallcap 250 TRI in recent years.
2) Experienced Fund Management
- Managed by seasoned professionals like Dhimant Shah, Rohan Korde, and Rajesh Bhatia, who bring decades of experience in small- and mid-cap stock selection.
3) High Growth Potential
- Focus on small-cap companies, which can outperform in bullish market cycles due to their growth potential and re-rating opportunities.
4) Diversified Portfolio
- Holds a large number of stocks (80+) across sectors like industrials, financials, and chemicals—spreading risk across multiple small-cap stories.
5) Low Expense Ratio (Direct Plan)
- The direct plan’s expense ratio is ~0.56%, which is relatively low for an actively managed small-cap fund—translating to higher returns for long-term investors.
Risks of ITI Small Cap Fund
1) High Volatility
- Being a small-cap fund, it’s subject to sharp ups and downs—can underperform significantly in bearish markets.
2) Liquidity Risk
- Small-cap stocks can be illiquid—making them harder to exit in volatile conditions, which could affect NAV during redemptions.
3) Concentration Risk
- Though diversified, the fund sometimes shows higher allocations to certain sectors (like industrials or financials), which could amplify sector-specific downturns.
4) Underperformance History
- In the initial years after launch (2020–2021), the fund underperformed peers and the benchmark, raising consistency concerns (though it has improved since then).
5) Manager Risk
- Any change in fund manager or investment strategy could impact future performance. Since the lead manager joined in 2022, there’s limited long-term track record under current leadership.
Investor Suitability
- Ideal for long-term investors (5+ years).
- Best suited for those with high risk appetite and patience to ride volatility.
- Not recommended for conservative or short-term investors.
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