+91-22-48913909Should You Invest in Small-Cap Funds? Risks, Returns & Strategy Explained
Small-cap Mutual Funds have gained tremendous popularity in India over the last few years. Some investors have doubled their wealth, while others have earned higher returns than many large-cap or mid cap funds. But small-cap Investing comes with high rewards and high risks.
In this article, we’ll break down everything you need to know about Small cap funds, including their benefits, risks, investment strategies, and tips to make them work for you.
India’s Growth Story and Why Small Companies Matter
India’s Small and Medium Enterprises (SMEs) already contribute over 30% of the country’s GDP and employ millions of people. With initiatives like Digital India, Startup India, and Production-Linked Incentive (PLI) schemes, many small firms are scaling rapidly. Some of these companies will transition into mid-cap territory, while a few could even become large-cap leaders of tomorrow.
When you invest in small-cap funds, you are essentially betting on India’s entrepreneurship and growth story. Historically, small companies with strong execution and scalability have delivered remarkable wealth creation opportunities.
Example - Early-stage Infosys in the 1990s was a small IT firm that became a global powerhouse. DMart started as a small retail chain before becoming a market favourite.
Understanding Small-Cap Funds
Small-cap mutual funds invest primarily in smaller companies that are ranked below the top 250 on the stock exchange, typically with a market capitalization between ₹500 crore and ₹5,000 crore. These companies are often in their growth phase, with potential to expand into mid-cap or large-cap territory over time. Examples include 3M India, LIC Housing Finance, Apollo Tyres, Tata Technologies, and TVS Holdings.
Think of small-cap companies like your local kirana store versus a nationwide retail chain. Today, the kirana store is small, but with growth, it could become the next DMart. The potential for high returns exists, but many small companies may also fail to scale.
How Small-Cap Funds Differ from Other Funds
Large cap funds: Invest in well-established companies with stable earnings and proven track records. Returns tend to be steady, but growth is moderate.
Mid-cap funds: Focus on medium-sized companies with growth potential, but with moderate risk.
Small-cap funds: Target small, emerging companies that can deliver exceptional long-term returns, but carry higher Volatility and risk.
Benefits of Small-Cap Funds
High Growth Potential: Small companies today may become the leaders of tomorrow, offering significant wealth creation opportunities. They have room to grow 5x, 10x, or even 20x, offering extraordinary long-term wealth creation potential.
Long-Term Wealth Creation: Historically, small-cap indices have delivered higher CAGR than large-cap indices, showing strong compounding potential. Consider the Nifty Smallcap 250 index, which has historically delivered around 15% CAGR since inception, compared to 12% for large-caps.
Example:
- ₹10 lakh invested in large-caps over 15 years → ₹54 lakh
- ₹10 lakh invested in small-caps over 15 years → ₹81 lakh
That’s the Power of Compounding.
Why Small-Cap Funds Have Rallied Recently
Strong growth in India’s SMEs and startups, combined with rising SIP inflows and institutional interest, has pushed small-cap funds higher in the last few years.
2023–24 Performance - Many small-cap funds delivered returns of over 35%, compared to 18–20% in large-caps.
Historical Perspective- Historically, small-cap funds have delivered returns well above large-caps during bullish phases. For example, some small-cap funds have given 35%+ annualized returns, compared to 18–20% for large-cap funds. However, volatility is high, and markets have experienced significant corrections, such as the 2017–18 small-cap crash.
How to Plan Your Investment Strategy in Small-Caps
1. Define Your Goal
Small-cap funds are extremely volatile in the short term — they can fall 30–40% in a single year. They are suitable only for long-term goals (7–10 years or more). Avoid using small-caps for short-term needs like a car purchase or wedding expenses.
2. SIP vs. Lump Sum
Investing via Systematic Investment plan (SIPs) smooths volatility:
- When markets fall, your SIP buys more units — like shopping during a sale.
- When markets rise, you buy fewer units, but older units appreciate.
Example:
- SIP of ₹10,000/month since 2018 → survived a 40% crash in 2018 and still delivered ~18–20% CAGR.
- Lump sum investment at market peak → could take years to recover.
3. Asset Allocation — Age, Market Cycle, and Risk Capital
Age - Younger investors can take more risk (15–20% in small-caps), while older investors should reduce exposure (under 10%, or even 5% for preservation).
Market Cycle - Avoid overloading during market highs. Increase allocation during downturns for maximum wealth creation.
Risk Capital - Only invest money you can lock in for 7–10 years. Treat it like venture capital within your Portfolio.
4. Entry & Exit Strategy
- Reduce exposure when valuations are extremely high (e.g., P/E ratios of 60–70x).
- Increase SIPs or allocation during market corrections — downturns are opportunities for long-term gains.
- Think of small-caps like a spice in your food — a little enhances the flavour, too much can burn your mouth.
Risks to Consider Before Investing in Small-Cap Funds
While small-cap funds offer high growth potential, they come with significant risks. Understanding these risks is crucial before investing.
1. Volatility
Small-cap funds are highly volatile, meaning their prices can swing dramatically in short periods. Unlike large-cap companies, smaller companies often have limited resources and market presence, so any negative news, weak earnings, or market downturn can cause sharp declines.
*Example- * During the COVID-19 crash in March 2020, the Nifty Smallcap 250 index fell by nearly 40%, while the Nifty 50 (large-cap index) fell around 25%. Imagine investing ₹10 lakh — your portfolio could suddenly drop to ₹6 lakh. While long-term investors can recover, short-term investors may face heavy losses.
2. Liquidity Risk
Liquidity refers to how easily an asset can be bought or sold without affecting its price. Many small-cap stocks are thinly traded, meaning there are fewer buyers and sellers in the market.
- If a large investor or institution decides to exit, the price of these stocks can drop sharply.
- This makes it difficult to sell your holdings quickly at a fair price during market downturns.
Tip: Small-cap funds are not suitable for short-term money. Only invest money you can leave untouched for at least 7–10 years.
3. Overvaluation Concerns
- Small-cap stocks can sometimes trade at extremely high valuations compared to their earnings potential.
- Many small-caps today are trading at 60–70x earnings, whereas large-cap stocks generally trade around 20x earnings.
- High valuations leave little margin of safety — if growth slows, stock prices can drop sharply.
*Example- * In early 2018, some small-cap funds were priced at extreme multiples, and when the market corrected, the Nifty Smallcap index fell almost 40% in a year. Investors who bought at peak valuations suffered significant losses.
4. History Repeats: Greed and Fear Cycles
- The small-cap market often experiences cycles of greed and fear.
- In 2017, small-cap funds delivered 50%+ returns, attracting many new investors.
- By 2018, the market corrected, and the same index crashed over 40%, wiping out gains for late entrants.
This pattern shows that high returns in one year can be followed by steep corrections. Timing and patience are crucial, and emotional investing can lead to losses.
Fund Selection Methodology used to Find 10 Funds
Top and Best Small-Cap Funds to Consider 2025
Fund NAV Net Assets (Cr) Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Nippon India Small Cap Fund Growth ₹168.498
↓ -0.35 ₹68,969 100 1.5 2.6 -3.4 21.5 29.3 26.1 HDFC Small Cap Fund Growth ₹140.857
↑ 0.21 ₹38,412 300 0 4.7 1.5 21 27 20.4 Franklin India Smaller Companies Fund Growth ₹168.201
↓ -0.29 ₹13,790 500 1.5 -1.1 -5.9 20.4 25.2 23.2 Sundaram Small Cap Fund Growth ₹263.182
↓ -0.19 ₹3,496 100 4 5.2 2.4 20.4 24.4 19.1 IDBI Small Cap Fund Growth ₹29.6231
↓ -0.08 ₹647 500 0.1 0.3 -10.4 16.6 24.2 40 ICICI Prudential Smallcap Fund Growth ₹86.27
↓ -0.18 ₹8,622 100 -0.5 1.2 -0.9 16.4 24 15.6 DSP Small Cap Fund Growth ₹197.217
↑ 0.54 ₹16,868 500 0.5 4 0.3 20.2 23.9 25.6 Kotak Small Cap Fund Growth ₹252.335
↓ -0.16 ₹18,024 1,000 -1.4 -1.8 -7.8 15.2 22.3 25.5 SBI Small Cap Fund Growth ₹169.873
↓ -0.15 ₹36,945 500 0 1 -4.4 13.7 20.5 24.1 Aditya Birla Sun Life Small Cap Fund Growth ₹86.4478
↑ 0.01 ₹5,127 1,000 3.4 3.9 -2.1 18.2 20.1 21.5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Nov 25 Research Highlights & Commentary of 10 Funds showcased
Commentary Nippon India Small Cap Fund HDFC Small Cap Fund Franklin India Smaller Companies Fund Sundaram Small Cap Fund IDBI Small Cap Fund ICICI Prudential Smallcap Fund DSP Small Cap Fund Kotak Small Cap Fund SBI Small Cap Fund Aditya Birla Sun Life Small Cap Fund Point 1 Highest AUM (₹68,969 Cr). Top quartile AUM (₹38,412 Cr). Lower mid AUM (₹13,790 Cr). Bottom quartile AUM (₹3,496 Cr). Bottom quartile AUM (₹647 Cr). Lower mid AUM (₹8,622 Cr). Upper mid AUM (₹16,868 Cr). Upper mid AUM (₹18,024 Cr). Upper mid AUM (₹36,945 Cr). Bottom quartile AUM (₹5,127 Cr). Point 2 Established history (15+ yrs). Established history (17+ yrs). Established history (19+ yrs). Oldest track record among peers (20 yrs). Established history (8+ yrs). Established history (18+ yrs). Established history (18+ yrs). Established history (20+ yrs). Established history (16+ yrs). Established history (18+ yrs). Point 3 Rating: 4★ (upper mid). Rating: 4★ (upper mid). Rating: 4★ (upper mid). Rating: 3★ (lower mid). Not Rated. Rating: 3★ (bottom quartile). Rating: 4★ (lower mid). Rating: 3★ (bottom quartile). Top rated. Rating: 5★ (top quartile). Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 29.32% (top quartile). 5Y return: 26.97% (top quartile). 5Y return: 25.19% (upper mid). 5Y return: 24.41% (upper mid). 5Y return: 24.23% (upper mid). 5Y return: 23.96% (lower mid). 5Y return: 23.94% (lower mid). 5Y return: 22.26% (bottom quartile). 5Y return: 20.48% (bottom quartile). 5Y return: 20.09% (bottom quartile). Point 6 3Y return: 21.54% (top quartile). 3Y return: 21.01% (top quartile). 3Y return: 20.38% (upper mid). 3Y return: 20.36% (upper mid). 3Y return: 16.64% (lower mid). 3Y return: 16.37% (bottom quartile). 3Y return: 20.16% (upper mid). 3Y return: 15.20% (bottom quartile). 3Y return: 13.68% (bottom quartile). 3Y return: 18.23% (lower mid). Point 7 1Y return: -3.39% (lower mid). 1Y return: 1.52% (top quartile). 1Y return: -5.89% (bottom quartile). 1Y return: 2.37% (top quartile). 1Y return: -10.35% (bottom quartile). 1Y return: -0.92% (upper mid). 1Y return: 0.31% (upper mid). 1Y return: -7.77% (bottom quartile). 1Y return: -4.39% (lower mid). 1Y return: -2.07% (upper mid). Point 8 Alpha: -2.66 (lower mid). Alpha: 0.00 (top quartile). Alpha: -3.92 (bottom quartile). Alpha: 2.09 (top quartile). Alpha: -5.20 (bottom quartile). Alpha: -1.20 (lower mid). Alpha: 0.00 (upper mid). Alpha: -5.17 (bottom quartile). Alpha: 0.00 (upper mid). Alpha: 0.00 (upper mid). Point 9 Sharpe: -0.35 (lower mid). Sharpe: -0.07 (top quartile). Sharpe: -0.40 (lower mid). Sharpe: -0.12 (top quartile). Sharpe: -0.43 (bottom quartile). Sharpe: -0.28 (upper mid). Sharpe: -0.17 (upper mid). Sharpe: -0.46 (bottom quartile). Sharpe: -0.45 (bottom quartile). Sharpe: -0.25 (upper mid). Point 10 Information ratio: -0.11 (upper mid). Information ratio: 0.00 (top quartile). Information ratio: -0.26 (lower mid). Information ratio: -0.43 (lower mid). Information ratio: -0.79 (bottom quartile). Information ratio: -0.85 (bottom quartile). Information ratio: 0.00 (top quartile). Information ratio: -0.97 (bottom quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Nippon India Small Cap Fund
HDFC Small Cap Fund
Franklin India Smaller Companies Fund
Sundaram Small Cap Fund
IDBI Small Cap Fund
ICICI Prudential Smallcap Fund
DSP Small Cap Fund
Kotak Small Cap Fund
SBI Small Cap Fund
Aditya Birla Sun Life Small Cap Fund
All the funds mentioned above are ideal, we are giving you detailed analysis of 5 funds.
The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies and the secondary objective is to generate consistent returns by investing in debt and money market securities. Below is the key information for Nippon India Small Cap Fund Returns up to 1 year are on To provide long-term capital appreciation by investing predominantly in Small-Cap and Mid-Cap companies. Research Highlights for HDFC Small Cap Fund Below is the key information for HDFC Small Cap Fund Returns up to 1 year are on The Fund seeks to provide long-term capital appreciation by investing in mid and small cap companies. Research Highlights for Franklin India Smaller Companies Fund Below is the key information for Franklin India Smaller Companies Fund Returns up to 1 year are on (Erstwhile Sundaram SMILE Fund) To primarily achieve capital appreciation by
investing in diversified stocks that are
generally termed as small and mid-caps and
by investing in other equities. Research Highlights for Sundaram Small Cap Fund Below is the key information for Sundaram Small Cap Fund Returns up to 1 year are on The Investment objective of the Scheme is to provide investors with the opportunities for long-term capital appreciation by investing predominantly in Equity and Equity related instruments of Small Cap companies. However
there can be no assurance that the investment objective under the Scheme will be realized. Research Highlights for IDBI Small Cap Fund Below is the key information for IDBI Small Cap Fund Returns up to 1 year are on 1. Nippon India Small Cap Fund
Nippon India Small Cap Fund
Growth Launch Date 16 Sep 10 NAV (28 Nov 25) ₹168.498 ↓ -0.35 (-0.20 %) Net Assets (Cr) ₹68,969 on 31 Oct 25 Category Equity - Small Cap AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.44 Sharpe Ratio -0.35 Information Ratio -0.11 Alpha Ratio -2.66 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 20 ₹10,000 31 Oct 21 ₹19,480 31 Oct 22 ₹22,272 31 Oct 23 ₹29,220 31 Oct 24 ₹42,673 31 Oct 25 ₹41,342 Returns for Nippon India Small Cap Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Nov 25 Duration Returns 1 Month -1.4% 3 Month 1.5% 6 Month 2.6% 1 Year -3.4% 3 Year 21.5% 5 Year 29.3% 10 Year 15 Year Since launch 20.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 26.1% 2023 48.9% 2022 6.5% 2021 74.3% 2020 29.2% 2019 -2.5% 2018 -16.7% 2017 63% 2016 5.6% 2015 15.1% Fund Manager information for Nippon India Small Cap Fund
Name Since Tenure Samir Rachh 2 Jan 17 8.83 Yr. Kinjal Desai 25 May 18 7.44 Yr. Lokesh Maru 5 Sep 25 0.16 Yr. Divya Sharma 5 Sep 25 0.16 Yr. Data below for Nippon India Small Cap Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Industrials 20.62% Financial Services 15.84% Consumer Cyclical 15.32% Basic Materials 11.51% Consumer Defensive 9.7% Health Care 8.96% Technology 7.64% Utility 2.56% Energy 1.78% Communication Services 1.38% Real Estate 0.56% Asset Allocation
Asset Class Value Cash 4.15% Equity 95.85% Top Securities Holdings / Portfolio
Name Holding Value Quantity Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 28 Feb 21 | MCX2% ₹1,711 Cr 1,851,010 HDFC Bank Ltd (Financial Services)
Equity, Since 30 Apr 22 | HDFCBANK2% ₹1,313 Cr 13,300,000 State Bank of India (Financial Services)
Equity, Since 31 Oct 19 | SBIN1% ₹970 Cr 10,347,848
↑ 1,247,848 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 28 Feb 17 | 5900031% ₹927 Cr 38,140,874 Kirloskar Brothers Ltd (Industrials)
Equity, Since 31 Oct 12 | KIRLOSBROS1% ₹838 Cr 4,472,130 eClerx Services Ltd (Technology)
Equity, Since 31 Jul 20 | ECLERX1% ₹810 Cr 1,712,794
↓ -49,536 Zydus Wellness Ltd (Consumer Defensive)
Equity, Since 31 Aug 16 | ZYDUSWELL1% ₹803 Cr 16,848,030 TD Power Systems Ltd (Industrials)
Equity, Since 31 Dec 15 | TDPOWERSYS1% ₹796 Cr 10,278,244 Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS1% ₹780 Cr 899,271 Bharat Heavy Electricals Ltd (Industrials)
Equity, Since 30 Sep 22 | 5001031% ₹758 Cr 28,538,232 2. HDFC Small Cap Fund
HDFC Small Cap Fund
Growth Launch Date 3 Apr 08 NAV (28 Nov 25) ₹140.857 ↑ 0.21 (0.15 %) Net Assets (Cr) ₹38,412 on 31 Oct 25 Category Equity - Small Cap AMC HDFC Asset Management Company Limited Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.58 Sharpe Ratio -0.07 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 20 ₹10,000 31 Oct 21 ₹19,409 31 Oct 22 ₹20,456 31 Oct 23 ₹27,227 31 Oct 24 ₹37,047 31 Oct 25 ₹38,152 Returns for HDFC Small Cap Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Nov 25 Duration Returns 1 Month -2.3% 3 Month 0% 6 Month 4.7% 1 Year 1.5% 3 Year 21% 5 Year 27% 10 Year 15 Year Since launch 16.2% Historical performance (Yearly) on absolute basis
Year Returns 2024 20.4% 2023 44.8% 2022 4.6% 2021 64.9% 2020 20.2% 2019 -9.5% 2018 -8.1% 2017 60.8% 2016 5.4% 2015 6.4% Fund Manager information for HDFC Small Cap Fund
Name Since Tenure Chirag Setalvad 28 Jun 14 11.35 Yr. Dhruv Muchhal 22 Jun 23 2.36 Yr. Data below for HDFC Small Cap Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Industrials 21.41% Consumer Cyclical 18.78% Technology 13.39% Health Care 12.32% Financial Services 11.86% Basic Materials 6.64% Consumer Defensive 3.31% Communication Services 1.87% Asset Allocation
Asset Class Value Cash 9.63% Equity 90.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity Firstsource Solutions Ltd (Technology)
Equity, Since 31 Mar 18 | FSL5% ₹1,956 Cr 55,264,362
↑ 352,528 eClerx Services Ltd (Technology)
Equity, Since 31 Mar 18 | ECLERX4% ₹1,715 Cr 3,626,595
↓ -57,166 Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Jun 19 | ASTERDM4% ₹1,622 Cr 23,927,134
↓ -200,000 Bank of Baroda (Financial Services)
Equity, Since 31 Mar 19 | 5321343% ₹1,304 Cr 46,828,792 Gabriel India Ltd (Consumer Cyclical)
Equity, Since 31 Oct 18 | GABRIEL3% ₹1,207 Cr 9,477,375
↓ -397,625 Eris Lifesciences Ltd Registered Shs (Healthcare)
Equity, Since 31 Jul 23 | ERIS3% ₹1,032 Cr 6,482,100
↑ 145,557 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Jul 23 | 5328433% ₹1,020 Cr 9,973,132
↓ -100,000 Indian Bank (Financial Services)
Equity, Since 31 Jul 16 | 5328142% ₹832 Cr 9,688,128 Krishna Institute of Medical Sciences Ltd (Healthcare)
Equity, Since 31 Jul 23 | 5433082% ₹802 Cr 11,127,166 Sonata Software Ltd (Technology)
Equity, Since 31 Oct 17 | SONATSOFTW2% ₹712 Cr 19,259,838
↑ 105,725 3. Franklin India Smaller Companies Fund
Franklin India Smaller Companies Fund
Growth Launch Date 13 Jan 06 NAV (28 Nov 25) ₹168.201 ↓ -0.29 (-0.17 %) Net Assets (Cr) ₹13,790 on 31 Oct 25 Category Equity - Small Cap AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆☆ Risk Moderately High Expense Ratio 1.72 Sharpe Ratio -0.41 Information Ratio -0.26 Alpha Ratio -3.92 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 20 ₹10,000 31 Oct 21 ₹18,656 31 Oct 22 ₹19,820 31 Oct 23 ₹26,123 31 Oct 24 ₹37,370 31 Oct 25 ₹35,778 Returns for Franklin India Smaller Companies Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Nov 25 Duration Returns 1 Month -2.2% 3 Month 1.5% 6 Month -1.1% 1 Year -5.9% 3 Year 20.4% 5 Year 25.2% 10 Year 15 Year Since launch 15.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 23.2% 2023 52.1% 2022 3.6% 2021 56.4% 2020 18.7% 2019 -5% 2018 -17.4% 2017 43.5% 2016 10.2% 2015 9.6% Fund Manager information for Franklin India Smaller Companies Fund
Name Since Tenure R. Janakiraman 1 Feb 11 14.76 Yr. Sandeep Manam 18 Oct 21 4.04 Yr. Akhil Kalluri 8 Sep 22 3.15 Yr. Data below for Franklin India Smaller Companies Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Consumer Cyclical 20.09% Financial Services 17.93% Industrials 17.12% Health Care 10.96% Basic Materials 10.48% Technology 7.98% Real Estate 4.69% Consumer Defensive 3.71% Utility 3.49% Energy 1.02% Asset Allocation
Asset Class Value Cash 1.79% Equity 98.05% Top Securities Holdings / Portfolio
Name Holding Value Quantity Brigade Enterprises Ltd (Real Estate)
Equity, Since 30 Jun 14 | 5329293% ₹401 Cr 3,868,691 Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 31 Jul 23 | ASTERDM3% ₹381 Cr 5,618,134
↓ -1,111,274 Syrma SGS Technology Ltd (Technology)
Equity, Since 31 Aug 22 | SYRMA2% ₹327 Cr 4,023,411 Eris Lifesciences Ltd Registered Shs (Healthcare)
Equity, Since 30 Sep 19 | ERIS2% ₹297 Cr 1,866,828 CCL Products (India) Ltd (Consumer Defensive)
Equity, Since 30 Apr 19 | CCL2% ₹280 Cr 3,260,279 Equitas Small Finance Bank Ltd Ordinary Shares (Financial Services)
Equity, Since 31 Oct 20 | EQUITASBNK2% ₹274 Cr 48,064,081 Zensar Technologies Ltd (Technology)
Equity, Since 28 Feb 23 | ZENSARTECH2% ₹257 Cr 3,220,340 Kalyan Jewellers India Ltd (Consumer Cyclical)
Equity, Since 31 May 22 | KALYANKJIL2% ₹253 Cr 4,963,469 Sobha Ltd (Real Estate)
Equity, Since 31 Mar 12 | SOBHA2% ₹245 Cr 1,513,099 Whirlpool of India Ltd (Consumer Cyclical)
Equity, Since 30 Apr 25 | 5002382% ₹245 Cr 1,750,000
↑ 450,000 4. Sundaram Small Cap Fund
Sundaram Small Cap Fund
Growth Launch Date 15 Feb 05 NAV (28 Nov 25) ₹263.182 ↓ -0.19 (-0.07 %) Net Assets (Cr) ₹3,496 on 31 Oct 25 Category Equity - Small Cap AMC Sundaram Asset Management Company Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 1.94 Sharpe Ratio -0.12 Information Ratio -0.43 Alpha Ratio 2.09 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 20 ₹10,000 31 Oct 21 ₹18,619 31 Oct 22 ₹19,219 31 Oct 23 ₹24,060 31 Oct 24 ₹33,312 31 Oct 25 ₹33,850 Returns for Sundaram Small Cap Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Nov 25 Duration Returns 1 Month -0.9% 3 Month 4% 6 Month 5.2% 1 Year 2.4% 3 Year 20.4% 5 Year 24.4% 10 Year 15 Year Since launch 17% Historical performance (Yearly) on absolute basis
Year Returns 2024 19.1% 2023 45.3% 2022 -2.1% 2021 60.3% 2020 26.2% 2019 -6.1% 2018 -29.2% 2017 55.6% 2016 -0.1% 2015 7.8% Fund Manager information for Sundaram Small Cap Fund
Name Since Tenure Rohit Seksaria 1 Nov 22 3 Yr. Data below for Sundaram Small Cap Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Consumer Cyclical 19.13% Financial Services 18.65% Industrials 18.24% Health Care 11.99% Basic Materials 8.49% Communication Services 5.41% Technology 4.38% Consumer Defensive 2.59% Real Estate 2.58% Utility 1.09% Asset Allocation
Asset Class Value Cash 5.96% Equity 93.99% Debt 0.05% Other 0% Top Securities Holdings / Portfolio
Name Holding Value Quantity Aster DM Healthcare Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Nov 23 | ASTERDM3% ₹114 Cr 1,681,362
↓ -217,293 Affle 3i Ltd (Communication Services)
Equity, Since 31 May 21 | AFFLE3% ₹102 Cr 530,036 MTAR Technologies Ltd (Industrials)
Equity, Since 31 Dec 24 | MTARTECH3% ₹102 Cr 399,900 E I D Parry India Ltd (Basic Materials)
Equity, Since 31 Jul 24 | EIDPARRY3% ₹98 Cr 914,768
↑ 15,305 Craftsman Automation Ltd (Consumer Cyclical)
Equity, Since 30 Jun 24 | CRAFTSMAN3% ₹94 Cr 140,821 SJS Enterprises Ltd (Consumer Cyclical)
Equity, Since 31 Aug 23 | 5433873% ₹93 Cr 577,256
↓ -64,527 Safari Industries (India) Ltd (Consumer Cyclical)
Equity, Since 28 Feb 21 | 5230253% ₹92 Cr 431,921 Rategain Travel Technologies Ltd (Technology)
Equity, Since 30 Jun 23 | 5434173% ₹92 Cr 1,434,521
↑ 26,843 PNB Housing Finance Ltd (Financial Services)
Equity, Since 31 Jul 24 | PNBHOUSING3% ₹89 Cr 953,608
↓ -37,951 Cholamandalam Financial Holdings Ltd (Financial Services)
Equity, Since 31 Jan 20 | CHOLAHLDNG2% ₹76 Cr 395,668 5. IDBI Small Cap Fund
IDBI Small Cap Fund
Growth Launch Date 21 Jun 17 NAV (28 Nov 25) ₹29.6231 ↓ -0.08 (-0.28 %) Net Assets (Cr) ₹647 on 31 Oct 25 Category Equity - Small Cap AMC IDBI Asset Management Limited Rating Risk Moderately High Expense Ratio 2.3 Sharpe Ratio -0.43 Information Ratio -0.79 Alpha Ratio -5.2 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Oct 20 ₹10,000 31 Oct 21 ₹18,487 31 Oct 22 ₹20,834 31 Oct 23 ₹24,081 31 Oct 24 ₹36,595 31 Oct 25 ₹34,102 Returns for IDBI Small Cap Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Nov 25 Duration Returns 1 Month -2.4% 3 Month 0.1% 6 Month 0.3% 1 Year -10.4% 3 Year 16.6% 5 Year 24.2% 10 Year 15 Year Since launch 13.8% Historical performance (Yearly) on absolute basis
Year Returns 2024 40% 2023 33.4% 2022 2.4% 2021 64.7% 2020 19% 2019 -4.4% 2018 -15% 2017 2016 2015 Fund Manager information for IDBI Small Cap Fund
Name Since Tenure Nikhil Rungta 1 Jul 24 1.33 Yr. Mahesh Bendre 1 Jul 24 1.33 Yr. Data below for IDBI Small Cap Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Industrials 30.11% Basic Materials 14.97% Consumer Cyclical 14.55% Consumer Defensive 8.55% Technology 7.49% Health Care 7.15% Financial Services 7.05% Utility 6.09% Communication Services 0.9% Real Estate 0.02% Asset Allocation
Asset Class Value Cash 3.11% Equity 96.89% Top Securities Holdings / Portfolio
Name Holding Value Quantity Apollo Micro Systems Ltd Ordinary Shares (Industrials)
Equity, Since 30 Jun 25 | APOLLO3% ₹22 Cr 877,192 Allied Blenders and Distillers Ltd (Consumer Defensive)
Equity, Since 31 Jul 24 | ABDL3% ₹22 Cr 326,140 Avalon Technologies Ltd (Technology)
Equity, Since 31 Aug 23 | AVALON3% ₹16 Cr 135,939
↓ -12,174 Manorama Industries Ltd (Consumer Defensive)
Equity, Since 31 Dec 24 | 5419742% ₹15 Cr 109,106 Syrma SGS Technology Ltd (Technology)
Equity, Since 31 May 25 | SYRMA2% ₹15 Cr 180,780 Navkar Corp Ltd (Industrials)
Equity, Since 31 Jul 24 | NAVKARCORP2% ₹13 Cr 1,130,075 Housing & Urban Development Corp Ltd (Financial Services)
Equity, Since 31 Oct 24 | HUDCO2% ₹13 Cr 557,918 Concord Enviro Systems Ltd (Utilities)
Equity, Since 31 Dec 24 | CEWATER2% ₹13 Cr 270,441 Arvind Fashions Ltd (Consumer Cyclical)
Equity, Since 29 Feb 24 | ARVINDFASN2% ₹13 Cr 259,739 Navin Fluorine International Ltd (Basic Materials)
Equity, Since 30 Sep 19 | NAVINFLUOR2% ₹13 Cr 22,671
Key Takeaway
Small-cap funds can generate exceptional long-term returns, but they are not for everyone. They require:
- A long-term investment horizon (7–10 years)
- Risk appetite to handle sharp ups and downs
- Strategic planning, including SIPs, proper Asset Allocation, and patience
By understanding these risks, investors can approach small-cap funds smartly, maximizing growth potential while minimizing unnecessary exposure.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2025 Shepard Technologies Private Limited. All Rights Reserved
Research Highlights for Nippon India Small Cap Fund