This small cap mutual fund gave 34% returns in three years; should you invest?
Nippon India Small Cap Fund
BASIC FACTS
DATE OF LAUNCH
16 SEPT 2010
CATEGORY
EQUITY
TYPE
SMALL CAP
AUM*
Rs.45,749 crore
BENCHMARK
NIFTY SMALLCAP 250
TOTAL RETURN INDEX
WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.147.01
IDCW**
Rs.84.44
MINIMUM INVESTMENT
Rs.5,000
MINIMUM SIP AMOUNT
Rs.1,000
EXPENSE RATIO# (%)
1.52
EXIT LOAD
1% for redemption within one year
*AS ON 31 MAR 2024
**AS ON 9 APR 2024
#AS ON 29 FEB 2024
FUND MANAGER
TEJAS SHETH /SAMIR RACHH (PIC)
1 YEAR / 7 YEARS, 2 MONTHS
Recent portfolio changes
New entrants
Aditya Birla Sun Life AMC, Aster DM Healthcare,R K Swamy, VIP Industries (March).
Complete exits
Apollo Hospitals Enterprise, Cera Sanitaryware, Indian Renewable Energy Development Agency, Laurus Labs, Shriram Finance, Tata Steel, Tata Technologies (March).
Should You Buy?
This small-cap fund’s asset base continues to grow, which has led to its portfolio size ballooning to nearly 200 stocks. While heavy diversification has led to a diluted portfolio, with tiny individual bets and very long tail, it has allowed the fund to mitigate risk in a category prone to sharp drawdowns. Beyond its core small-cap mandate, the fund also maintains a modest presence in mid caps as well as large caps for liquidity needs. Despite its bulky portfolio, the fund has put in an impressive show in recent years, consistently outperforming the index and peers, while boasting superior risk metrics. Though its return profile has slipped over the past year, its proven credentials make it a worthy offering in this segment.
