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Nippon India Small Cap Fund (Formerly know as Reliance Small Cap Fund) and HDFC Small Cap Fund both of them belong to the small cap category offered by different fund houses. Though both the schemes belong to the same category of Small cap funds under equity category yet, there are differences between both of them. So, let us understand the differences between both the schemes through this article.
This scheme of Nippon India was launched on April 03, 2008. The scheme’s main objective is to attain long-term Capital appreciation by Investing in equity and equity-related instruments of small-cap companies.
The top 10 holdings of Nippon India Small Cap Fund (as on January 31, 2018) include VIP Industries Limited, RBL Bank Limited, Navin Fluorine International Limited, Zydus Wellness Limited, etc.
From October 2019, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.
HDFC Small Cap Fund is a part of HDFC Mutual Fund and was incepted on April 03, 2008. The primary aim of the scheme is to achieve capital growth in the long-term by investing a major portion of its corpus in shares of small cap companies.
As on January 31, 2018, the top 10 holdings of HDFC Small Cap Fund’s Portfolio include Sonata Software Limited, TV Today Network Limited, KEC International Limited, Oriental Carbon & Chemicals Limited, etc.
In this section, the parameters compared are current NAV, Fincash Rating, AUM, their category, expense ratio, exit load and so on. To begin with, the category of these schemes, they both belong to equity category. With respect to the current NAV, both the schemes have different NAV though the difference is not much.
Fincash Ratings for both the Nippon India/Reliance Small Cap Fund and HDFC Small Cap Fund are 4-Star
To summarize, the basic parameters are compared below as follows.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load Nippon India Small Cap Fund
Growth
Fund Details ₹89.8254 ↓ -0.90 (-1.00 %) ₹23,910 on 28 Feb 23 16 Sep 10 ☆☆☆☆ Equity Small Cap 6 Moderately High 1.86 0.52 1.58 10.05 Not Available 0-1 Years (1%),1 Years and above(NIL) HDFC Small Cap Fund
Growth
Fund Details ₹78.884 ↓ -0.73 (-0.92 %) ₹14,649 on 28 Feb 23 3 Apr 08 ☆☆☆☆ Equity Small Cap 9 Moderately High 1.84 0.57 0 0 Not Available 0-1 Years (1%),1 Years and above(NIL)
After looking at the basic parameters let us now look at the performance aspects of both the funds. With respect to performance aspects, there is not much difference in the areas of 1 Month Returns, 3 Month Returns, 6 Month Returns, and 1 Year returns. However, with respect to 3 Year Returns, 5 Year Returns, and Returns Since Inception, there seems a good difference between both of them. In these parameters, the returns of Reliance Small Cap Fund is higher as compared to HDFC Small Cap Fund. Therefore, though HDFC Small Cap Scheme was launched earlier than Reliance’s scheme yet; its performance is better. The table given below shows the performance of both the schemes.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Nippon India Small Cap Fund
Growth
Fund Details -1.6% 1.3% -1.5% 7.1% 53.1% 16.1% 19.2% HDFC Small Cap Fund
Growth
Fund Details -0.8% 5.1% 4% 10.6% 48.2% 12.6% 14.8%
After looking at the 1Y, 3Y, 5Y Performance let us now look at the absolute yearly performance aspects of both the funds in last 5 years. over here Nippon India Small Cap Fund is generating marginally better returns every year in comparison to HDFC Small cap fund.
Parameters Yearly Performance 2022 2021 2020 2019 2018 Nippon India Small Cap Fund
Growth
Fund Details 6.5% 74.3% 29.2% -2.5% -16.7% HDFC Small Cap Fund
Growth
Fund Details 4.6% 64.9% 20.2% -9.5% -8.1%
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In this section of other details, some of the parameters compared are Minimum SIP and lumpsum investment. Though the lumpsum investment in case of both the schemes is same, that is, INR 5,000, nevertheless, in case of SIP, the minimum amount of Reliance is lower as compared to HDFC.
Nippon India/Reliance Small Cap Fund is managed by Mr. Samir Rachh
HDFC Small Cap Fund is managed by Mr. Chirag Setalvad
Parameters Other Details Min SIP Investment Min Investment Fund Manager Nippon India Small Cap Fund
Growth
Fund Details ₹100 ₹5,000 Samir Rachh - 6.08 Yr. HDFC Small Cap Fund
Growth
Fund Details ₹300 ₹5,000 Chirag Setalvad - 8.6 Yr.
Nippon India Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹8,055 29 Feb 20 ₹8,463 28 Feb 21 ₹12,369 28 Feb 22 ₹17,427 28 Feb 23 ₹19,697 HDFC Small Cap Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹8,907 29 Feb 20 ₹8,173 28 Feb 21 ₹11,422 28 Feb 22 ₹15,115 28 Feb 23 ₹17,184
Nippon India Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.3% Equity 96.7% Equity Sector Allocation
Sector Value Industrials 25.1% Consumer Cyclical 16.53% Basic Materials 15.54% Financial Services 15.32% Consumer Defensive 8.11% Technology 6.64% Health Care 5.35% Communication Services 1.46% Energy 0.58% Real Estate 0.48% Utility 0.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity Tube Investments of India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 30 Apr 18 | TIINDIA4% ₹853 Cr 3,267,559 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹433 Cr 2,700,000 Bank of Baroda (Financial Services)
Equity, Since 31 Mar 21 | 5321342% ₹420 Cr 25,045,248 KPIT Technologies Ltd (Technology)
Equity, Since 30 Jun 19 | KPITTECH2% ₹363 Cr 4,756,932
↓ -687,985 Balrampur Chini Mills Ltd (Consumer Defensive)
Equity, Since 28 Feb 19 | BALRAMCHIN1% ₹351 Cr 9,291,212 NIIT Ltd (Consumer Defensive)
Equity, Since 29 Feb 12 | NIITLTD1% ₹347 Cr 10,638,553
↑ 240,569 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Sep 21 | LT1% ₹336 Cr 1,583,030 Timken India Ltd (Industrials)
Equity, Since 28 Feb 18 | 5221131% ₹334 Cr 1,067,270 Bajaj Electricals Ltd (Consumer Cyclical)
Equity, Since 31 Mar 16 | BAJAJELEC1% ₹329 Cr 3,062,071 Tejas Networks Ltd (Technology)
Equity, Since 30 Jun 17 | TEJASNET1% ₹327 Cr 5,763,697 HDFC Small Cap Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 6.5% Equity 93.5% Equity Sector Allocation
Sector Value Industrials 26.33% Consumer Cyclical 20.29% Financial Services 13.68% Technology 12.74% Basic Materials 9.42% Health Care 4.69% Consumer Defensive 3.91% Communication Services 2.34% Top Securities Holdings / Portfolio
Name Holding Value Quantity Sonata Software Ltd (Technology)
Equity, Since 31 Oct 17 | SONATSOFTW5% ₹662 Cr 10,903,616
↑ 5,400 Bank of Baroda (Financial Services)
Equity, Since 31 Mar 19 | 5321344% ₹601 Cr 35,828,792
↓ -171,208 Bajaj Electricals Ltd (Consumer Cyclical)
Equity, Since 31 Mar 19 | BAJAJELEC4% ₹593 Cr 5,512,922 Firstsource Solutions Ltd (Technology)
Equity, Since 31 Mar 18 | FSL3% ₹508 Cr 47,000,000 eClerx Services Ltd (Technology)
Equity, Since 31 Mar 18 | ECLERX3% ₹438 Cr 3,012,043
↑ 63,300 IDFC Ltd (Financial Services)
Equity, Since 31 Oct 21 | IDFC3% ₹434 Cr 50,571,544 Great Eastern Shipping Co Ltd (Industrials)
Equity, Since 31 Jan 15 | GESHIP3% ₹428 Cr 6,668,480 PNC Infratech Ltd (Industrials)
Equity, Since 31 Oct 15 | PNCINFRA3% ₹387 Cr 11,772,819 Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Jun 19 | ASTERDM2% ₹351 Cr 16,530,886 KEI Industries Ltd (Industrials)
Equity, Since 30 Sep 17 | KEI2% ₹341 Cr 2,110,000
Thus, from the above comparisons, we can find that both the schemes are different in certain parameters while same in certain parameters. However, it is always advised to people that they understand the modalities of a scheme completely and check whether it matches their investment objectives before investing. In addition, they can even consult a financial advisor to ensure that the selected fund is in-line with their objectives and they attain it on time.