Nippon India Nifty Smallcap 250 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Nippon India Nifty Smallcap 250 Index Fund Direct Growth Plan has a NAV of ₹35.5048 as of 15 September 2026 and an AUM of ₹3,518 Cr. Its 1-year, 3-year and 5-year returns are 3.83%, 13.07% and 13.75% respectively, and the scheme sits in the High Risk bucket. Our view is that it suits investors who can tolerate sharp swings and want small-cap exposure through an index-style structure rather than an actively chosen stock basket.
The fund’s recent performance has been uneven, but the 3-year and 5-year numbers show that it has built a stronger longer-term compounding record than its short-run result suggests. The portfolio is spread across 62 holdings, with no single position dominating the list, so the experience is likely to remain volatile but diversified across many small-cap names.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹35.5048 as of 15 Sep 2026 |
| AUM | ₹3,518 Cr |
| Expense Ratio | 0.35% |
| Launch Date | 16 Oct 2020 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | No exit load |
| Fund Managers | Himanshu Mange |
The fund is managed by Himanshu Mange.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -2.27% | -4.81% |
| 3M | 3.22% | -3.63% |
| 1Y | 3.83% | -8.27% |
| 3Y | 13.07% | 5.59% |
| 5Y | 13.75% | 5.58% |
The near-term pattern is mixed. Over 1 month, the fund fell 2.27%, but that was still less weak than the benchmark’s 4.81% decline. Over 3 months, the fund turned positive at 3.22% while the benchmark stayed negative, which tells us the fund has handled the latest rebound better than the reference index.
The 1-year view is more modest. The fund is up 3.83%, but that is not a strong year in absolute terms, and it follows a period of notable weakness in the small-cap space. Even so, the benchmark’s -8.27% return makes the fund look comparatively resilient over the same stretch.
The longer view is more encouraging. At 13.07% over 3 years and 13.75% over 5 years, the fund has compounded at a steadier pace than the benchmark’s 5.59% and 5.58%. That gap suggests the fund has added value over full cycles rather than only during short bursts. The recent softness does not change the broader picture, but it does remind us that small-cap indexing can still deliver choppy paths even when the longer trend is positive.
Our read is that the fund’s return profile is better judged over multi-year horizons. The 3-year and 5-year numbers show consistent improvement relative to the benchmark, while the latest 1-year result is more subdued and should be viewed in the context of the asset class’s volatility.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Nippon India Nifty Smallcap 250 Index?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding Nippon India Nifty Smallcap 250 Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Nippon India Nifty Smallcap 250 Index Fund Direct Growth Plan | 3.83% | 13.07% | 13.75% |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 29.31% | 30.01% | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 21.71% | Data not available | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 21.45% | Data not available | Data not available |
| Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan | 20.15% | Data not available | Data not available |
| ICICI Pru Nifty Pharma Index Fund Direct Growth Plan | 18.11% | 18.92% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The current fund’s 1-year return is far below the strongest 1-year figures in this peer set, but its longer record tells a different story. Its 3-year and 5-year returns are more balanced than several peers that have only short histories available, and that makes the fund easier to assess on a full-cycle basis.
Among the peers with available multi-year figures, the fund’s 3-year and 5-year numbers are not the highest in this table, yet they are materially better than the benchmark shown in the earlier section. The short-term and long-term pictures are therefore not the same: the near-term result looks modest, while the longer-term trend remains more constructive.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Sona BLW Precision Forgings Limited | Automobile & Ancillaries | 1.65% |
| Ather Energy Limited | Domestic Equities | 1.49% |
| Karur Vysya Bank Limited | Bank | 1.49% |
| Navin Fluorine International Limited | Chemicals | 1.45% |
| Welspun Corp Limited | Iron & Steel | 1.42% |
| Piramal Finance Limited | Finance | 1.25% |
| Delhivery Limited | Logistics | 1.16% |
| HFCL Limited | Telecom | 1.16% |
| Central Depository Services (India) Limited | Business Services | 1.13% |
| RBL Bank Limited | Bank | 1.06% |
The top 10 holdings account for approximately 13.26% of the portfolio.
To see all holdings, visit the Nippon India Nifty Smallcap 250 Index Fund Direct Growth Plan page
The largest holding is Sona BLW Precision Forgings Limited at 1.65%, which is only slightly above the next two positions at 1.49% each. The gap from the first holding to the tenth is not steep, and that tells us the visible part of the portfolio is fairly even rather than dominated by a single name.
That said, the combined weight of the top 10 holdings is still only 13.26%, while the portfolio includes 62 disclosed holdings. In our view, that points to a broad spread of positions with a long tail behind the largest names. No single holding looks likely to drive the full result on its own, although the fund can still move sharply because the underlying small-cap segment itself is volatile.
This structure may help limit concentration in individual stocks, but it also means performance will depend on many smaller positions working together. For investors, that can feel smoother than a highly concentrated portfolio, yet it does not remove the inherent risk of the small-cap universe.
Source data date: as of 15 Sep 2026
Who should invest
This fund suits investors who can stay comfortable with High Risk exposure and a volatile small-cap path. The 1-year figure is modest, but the 3-year and 5-year numbers are stronger and show that the fund can build returns over time even after weak stretches.
The better fit is a long horizon, because the shorter periods can swing around the benchmark quite sharply. The main trade-off is straightforward: you get broad small-cap exposure and a low expense ratio, but you must accept that the ride can be uneven and that short-term outcomes may lag stronger peer examples.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: No exit load.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of Nippon India Nifty Smallcap 250 Index Fund Direct Growth Plan?
The current NAV is ₹35.5048 as of 15 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 3.83%, its 3-year return is 13.07%, and its 5-year return is 13.75%.
How does the fund compare with its benchmark?
It has outperformed the benchmark over 3 years and 5 years, while the 1-year figure is also better than the benchmark’s negative return. The benchmark has been weaker over the shorter periods shown here.
How does it compare with the peer funds listed here?
Its 1-year return is below the strongest 1-year peer figures shown, but its 3-year and 5-year record is more meaningful for comparison because several peers do not have longer histories available. The longer-term profile remains constructive even though the short-term result is modest.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
What is the risk profile, and who manages the fund?
The fund is tagged as High Risk, and it is managed by Himanshu Mange. The portfolio is spread across 62 holdings, so single-stock concentration appears limited within the disclosed top names.
Bottom line
Nippon India Nifty Smallcap 250 Index Fund Direct Growth Plan shows a mixed short-term picture but a better multi-year compounding record. Its return trend has been stronger over 3 years and 5 years than over 1 year, and it has also held up better than the benchmark across the periods shown. The portfolio is fairly spread out, with 62 holdings and a modest top-weight profile, which reduces single-name dependence but does not remove small-cap volatility. It looks most suitable for investors who can stay invested through uneven stretches and want broad small-cap exposure with a low-cost structure.
Published on 16 September 2026 at 4:30 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.