Nippon India Small Cap Fund has emerged as a clear leader among the top-performing equity schemes from Nippon India Mutual Fund. Over the past 15 years, this fund has delivered stellar returns, outperforming all other schemes in the small-cap space.
On a lump-sum investment, the fund has given an annualised return of nearly 21% over the last 15 years. The SIP return has been even better with over 23% CAGR. These returns show the fund’s ability to generate consistent long-term growth across market cycles.
In terms of size, the Nippon India Small Cap Fund is also the largest scheme of the fund house, reflecting strong investor confidence and sustained inflows. It carries a 5-star rating from Value Research, further validating its reputation as a reliable wealth creator.
Launched on September 16, 2010, the fund recently completed 15 years. As of September 30, 2025, it managed Assets Under Management (AUM) of Rs 66,136 crore. The expense ratio, as of October 31, 2025, stood at a competitive 1.39%, balancing cost efficiency with strong fund management.
Investors can start their journey with this fund with a minimum lump-sum investment of Rs 5,000 or begin a Systematic Investment Plan (SIP) with as little as Rs 100 per month.
Latest NAV (as of October 31, 2025): Rs 171.17
Standard Deviation: 16.46
Beta: 0.80
Sharpe Ratio: 0.97
(Source: Fact Sheet)
Fund’s lump-sum performance
The Nippon India Small Cap Fund (Regular Plan) was launched on September 16, 2010, making it a little over 15 years old. Since its inception, the fund has delivered an impressive annualised return of 20.51% on lump-sum investments.
If an investor had invested Rs 1 lakh as a one-time investment at the time of the fund’s launch, the value of that investment would have grown to Rs 16,57,840 today.
Lump sum return since launch: 20.51% (annualized)
One-time investment: Rs 1 lakh
Value of Rs 1 lakh since launch: Rs 16,57,840
(Source: Fact Sheet)
Fund’s SIP performance
According to Value Research, SIP data for the Nippon India Small Cap Fund is available for a 15-year period. Over these 15 years, the fund has delivered an impressive annualized SIP return of 22.84%.
If an investor had started with an upfront investment of Rs 1 lakh and continued a monthly SIP of Rs 10,000 since the fund’s inception, the total investment of Rs 19 lakh would have grown to Rs 1,44,75,433 today.
15-year annualised SIP return: 22.84%
Upfront investment: Rs 1 lakh
Monthly SIP amount: Rs 10,000
Total investment in 15 years: Rs 19,00,000
Total value after 15 years: Rs 1,44,75,433
(Source: Value Research)
Fund’s investment strategy
The Nippon India Small Cap Fund aims to generate superior risk-adjusted returns by investing primarily in small-cap companies. Small-cap companies are those whose market capitalization is lower than that of India’s top 250 listed companies.
This fund focuses on identifying high-potential small-cap businesses that have the ability to grow into future mid-cap companies. These companies typically offer strong growth prospects and are often available at relatively attractive valuations — in other words, big opportunities at lower prices
Top 10 stocks in the portfolio
MCX: 2.18%
HDFC Bank: 1.91%
Kirloskar Brothers: 1.30%
Karur Vysya Bank: 1.22%
SBI (State Bank of India): 1.20%
NLC India: 1.17%
Tube Investments: 1.17%
Zydus Wellness: 1.16%
Pradeep Phosphates: 1.13%
Apar Industries: 1.11%
Top 10 sectors in the portfolio
Consumer durables – 7.89%
Industrial products – 6.73%
Auto components – 6.50%
Banks – 6.38%
Electrical equipment – 6.13%
Pharma & biotechnology – 5.36%
Capital markets – 4.95%
Chemicals & petrochemicals – 3.84%
Finance – 3.63%
Health care services – 3.60%
(Note: Past performance of any equity fund is not a guarantee of future returns. The same level of performance may or may not continue in the future. Since markets are subject to risk, investors should consult a financial expert before making investment decisions.)
Note: This content has been translated using AI. It has also been reviewed by FE Editors for accuracy.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.