Nippon India Small Cap Fund is an open-ended equity scheme that predominantly invests in small-cap companies, aiming for long-term capital appreciation. Launched on September 16, 2010, the fund is managed by Mr. Samir Rachh since January 2017.
Fund Details:
- Inception Date: September 16, 2010
- Fund Manager: Mr. Samir Rachh
- Benchmark: NIFTY Smallcap 250 Total Return Index
- Assets Under Management (AUM): ₹50,826.29 crore
- Expense Ratio: 1.48%
Nippon India Small Cap Fund Share Price
As of March 27, 2025, the Net Asset Value (NAV) for the Nippon India Small Cap Fund is as follows:
- Direct Plan – Growth Option: ₹167.66
Minimum Investment:
- Initial Investment: ₹5,000 and in multiples of ₹1 thereafter
- Additional Investment: ₹1,000
- Systematic Investment Plan (SIP): ₹100
Investment Philosophy:
- Focuses on companies with market capitalizations below the top 250 in terms of full market capitalization.
- Targets small-cap firms with high growth potential and relatively lower valuations.
- Emphasizes businesses with robust growth prospects, quality management, and reasonable valuations.
- Employs risk management strategies such as maintaining a margin of safety and diversifying across sectors and stocks to achieve better risk-adjusted returns over time.
Performance Overview (as of February 28, 2025):
- 1-Year Return: -2.15%
- 3-Year Return: 20.24% (CAGR)
- 5-Year Return: 29.03% (CAGR)
- Since Inception: 19.99% (CAGR)
Top Holdings:
- HDFC Bank Ltd. (Financials) – 1.85%
- Tube Investments Of India Ltd. (Automobile) – 1.74%
- Multi Commodity Exchange Of India Ltd. (Services) – 1.68%
- Apar Industries Ltd. (Diversified) – 1.38%
- Voltamp Transformers Ltd. (Capital Goods) – 1.38%
Sector Allocation:
- Capital Goods: 17.56%
- Financials: 11.33%
- Services: 10.45%
- Consumer Staples: 8.85%
- Healthcare: 8.14%
Why Invest in SIP with Nippon India Small Cap Fund?
1) Strong Historical Performance
- 5-year CAGR: 29.03%
- 10-year CAGR: 24%+ (as of recent data)
- Consistently outperformed its benchmark NIFTY Smallcap 250 TRI over the long term.
2) Rupee Cost Averaging
- Small-cap funds are highly volatile.
- SIP investment helps average out purchase costs, reducing the impact of market fluctuations.
3) High Growth Potential
- Small-cap companies can deliver exponential returns over time.
- The fund invests in emerging businesses with strong potential.
4) Experienced Fund Management
- Managed by Samir Rachh, who has successfully navigated market cycles.
Nippon India Small Cap Fund Portfolio
As of October 4, 2024, the Nippon India Small Cap Fund maintains a diversified portfolio primarily focused on small-cap companies with high growth potential. Below is an overview of its portfolio composition:
Top Equity Holdings:
| Company Name | Sector | Amount Invested | Total Assets |
| HDFC Bank Limited | Finance – Banks – Private Sector | ₹1,088.54 Crores | 1.78% |
| Tube Investments of India Limited | Cycles & Accessories | ₹1,007.39 Crores | 1.65% |
| Multi Commodity Exchange of India Limited | Exchange Platform | ₹959.34 Crores | 1.57% |
| Voltamp Transformers Limited | PowerTransmission/Equipment | ₹917.42 Crores | 1.50% |
| Apar Industries Limited | Chemicals – Speciality | ₹869.86 Crores | 1.43% |
| Kirloskar Brothers Limited | Pumps | ₹806.56 Crores | 1.32% |
| Bharat Heavy Electricals Limited | Engineering – Heavy | ₹799.01 Crores | 1.31% |
| Tejas Networks Limited | Telecom Equipment | ₹759.74 Crores | 1.25% |
| NLC India Limited | Power – Generation/Distribution | ₹748.02 Crores | 1.23% |
| State Bank of India | Finance – Banks – Public Sector | ₹742.20 Crores | 1.22% |
Sector Allocation:
| Sector | Allocation Percentage |
| Industrials | 23.92% |
| Financial Services | 13.39% |
| Consumer Cyclical | 12.69% |
| Basic Materials | 12.30% |
| Technology | 9.17% |
| Consumer Defensive | 8.80% |
| Health Care | 7.92% |
| Utility | 1.94% |
| Communication Services | 1.89% |
| Energy | 1.82% |
| Real Estate | 0.61% |
Asset Allocation:
- Equity: 94.93%
Nippon India Small Cap Fund Returns
As of February 28, 2025, the Nippon India Small Cap Fund has demonstrated varying performance across different time frames. Below is a summary of the fund’s returns:
Nippon India Small Cap Fund – Regular Plan
| Period | Investment Value (₹) | Returns |
| 1 Year | 9,785 | -2.15% |
| 3 Years | 17,395 | 20.24% |
| 5 Years | 35,820 | 29.03% |
| Since Inception (Sep 16, 2010) | 139,479 | 19.99% |
Nippon India Small Cap Fund – Direct Plan
| Period | Investment Value (₹) | Returns |
| 1 Year | 9,860 | -1.40 |
| 3 Years | 17,840 | 21.26 |
| 5 Years | 37,375 | 30.13 |
| Since Inception (Jan 1, 2013) | 143,014 | 24.44 |
These figures indicate that while the fund experienced a slight decline over the 1-year period, it has delivered robust long-term returns, particularly over the 3-year and 5-year horizons.
Nippon India Small Cap Fund – Direct – Growth
As of March 19, 2025, the Nippon India Small Cap Fund – Direct Plan – Growth Option has demonstrated the following performance:
NAV as on March 19, 2025: ₹165.3145
Performance Returns:
| Investment Period | Absolute Returns | Annualized Returns |
| 1 Month | 1.24% | – |
| 3 Months | -18.72% | – |
| 1 Year | 7.78% | 7.78% |
| 3 Years | 80.00% | 21.57% |
| 5 Years | 398.00% | 38.93% |
| Since Inception | 1,368.00% | 24.68% |
Additional Information:
- Launch Date: January 1, 2013
- Benchmark: BSE SENSEX – TRI
- Expense Ratio: 0.74% (as of February 28, 2025)
- Assets Under Management (AUM): ₹50,826.29 crore
- Exit Load: 1% if redeemed on or before 1 year; Nil after 1 year
Strengths of Nippon India Small Cap Fund
1) High Long-Term Returns:
- The fund has delivered strong long-term performance, with 5-year returns around 30% CAGR and 10-year returns over 20% CAGR.
- It has outperformed its benchmark, the Nifty Smallcap 250 TRI, over various timeframes.
2) Diversified Small-Cap Portfolio:
- Invests in high-growth potential companies across multiple sectors, reducing concentration risk.
- Top holdings include industrials, financials, consumer goods, and technology.
3) Strong Fund Management:
- Managed by industry veteran fund managers, ensuring professional portfolio selection.
- Follows a disciplined stock selection approach, focusing on fundamentals and growth potential.
4) Best Suited for SIP Investors:
- A SIP approach helps reduce volatility impact and benefits from rupee cost averaging.
- Suitable for investors with a long-term horizon (7+ years).
5) Lower Expense Ratio (Direct Plan):
- The expense ratio of around 0.74% (Direct Plan) is relatively low, ensuring better returns compared to Regular Plans.
Risks of Nippon India Small Cap Fund
1) High Long-Term Returns:
- The fund has delivered strong long-term performance, with 5-year returns around 30% CAGR and 10-year returns over 20% CAGR.
- It has outperformed its benchmark, the Nifty Smallcap 250 TRI, over various timeframes.
2) Diversified Small-Cap Portfolio:
- Invests in high-growth potential companies across multiple sectors, reducing concentration risk.
- Top holdings include industrials, financials, consumer goods, and technology.
3) Strong Fund Management:
- Managed by industry veteran fund managers, ensuring professional portfolio selection.
- Follows a disciplined stock selection approach, focusing on fundamentals and growth potential.
4) Best Suited for SIP Investors:
- A SIP approach helps reduce volatility impact and benefits from rupee cost averaging.
- Suitable for investors with a long-term horizon (7+ years).
5) Lower Expense Ratio (Direct Plan):
- The expense ratio of around 0.74% (Direct Plan) is relatively low, ensuring better returns compared to Regular Plans.
Conclusion:
Nippon India Small Cap Fund stands out for its strong historical performance and strategic focus on emerging companies. While it offers substantial growth opportunities, potential investors should be prepared for high volatility and align their investment horizon accordingly. Conducting thorough due diligence and assessing personal risk tolerance are essential steps before committing to this fund.
Contact Information:
- Address: 4th Floor, Tower A, Peninsula Business Park, Ganapatrao Kadam Marg, Mumbai – 400013
- Phone: 022-68334800 / 18602660111
- Website: Nippon India Mutual Fund
SIP Returns: The Smart Way to Invest For Beginners
How much tax is applicable on SIP? Is SIP tax free?
Why SIP is the Best Investment Option for Beginners?
Disclaimer: The content on this website is intended for informational purposes only and should not be interpreted as financial or investment advice. Engaging in stock market activities involves inherent risks, and outcomes can be unpredictable. While we strive to provide accurate and up-to-date information, we do not make any guarantees regarding the completeness or reliability of the content. Any investment decisions you make should be based on your own research and consultation with a qualified financial professional. We are not responsible for any financial gains or losses resulting from actions taken based on the information provided here. Always invest wisely and at your own risk.
