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UTI Small Cap Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

  • September 16, 2026
  • Posted by: Chaitanya Auti
  • Category: Mutual Funds
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UTI Small Cap Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

UTI Small Cap Fund Direct Growth Plan currently has a NAV of ₹29.3852 as of 15 Sep 2026 and a scheme AUM of ₹5,447 Cr. Its 1-year, 3-year and 5-year returns are 4.31%, 13.1% and 14.82% respectively, and the scheme sits in the High Risk bucket.

Our view is that this is a small-cap fund for investors who can tolerate sharp swings and want exposure to a portfolio that has been able to compound over longer periods, even though the recent 1-year result has been much softer. The return pattern is better suited to a patient, multi-year horizon than to someone looking for steady near-term capital preservation.

Table of Contents

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  • Quick facts
  • Performance
  • Should you BUY or HOLD UTI Small Cap?
  • Peer comparison
  • Portfolio: where your money goes
  • Who should invest
  • Tax and exit load
  • Frequently asked questions
  • Bottom line
  • Explore mutual funds with Univest
  • RIA disclosure

Quick facts

Particular Details
NAV ₹29.3852 as of 15 Sep 2026
AUM ₹5,447 Cr
Expense Ratio 0.63%
Launch Date 22 Dec 2020
Min SIP ₹500
Risk Category High Risk
Benchmark Nifty Small Cap
Fund Category Equity
Exit Load 1% on or before 1Y, Nil after 1Y
Fund Managers Nitin Jain

The fund is managed by Nitin Jain.

Source data date: as of 15 Sep 2026

Performance

Period Fund return Benchmark return
1M -3.14% -2.29%
3M 2.18% 3.01%
1Y 4.31% 3.15%
3Y 13.1% 13.52%
5Y 14.82% 13.83%

The fund’s short-term path has been uneven. The 1-month return is negative, while the 3-month return has recovered into positive territory. That tells us the recent stretch has not been smooth, even though the fund has managed to stay ahead of the benchmark over 1 year.

Over 3 years, the fund has lagged the benchmark slightly, which suggests that the medium-term compounding has been respectable but not clearly superior to the index. The 5-year picture is more encouraging: the fund is modestly ahead of the benchmark, which points to better long-run compounding than the index despite recent volatility.

That mix matters for small-cap investors. The fund has not moved in a straight line, and the time path shows several phases of strength and drawdown. Recent behaviour is softer than the 5-year trend, so the latest year looks less convincing than the longer holding period.

For investors, the key takeaway is that this is a fund where the longer arc looks more useful than the shorter one. If the goal is to capture small-cap growth with acceptance of bumps along the way, the performance pattern fits that mandate. If the goal is smoother returns, the recent swings may feel uncomfortable.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD UTI Small Cap?

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.

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Peer comparison

Fund 1Y return 3Y return 5Y return
UTI Small Cap Fund Direct Growth Plan 4.31% 13.1% 14.82%
TRUSTMF Small Cap Fund Direct Growth Plan 28.42% Data not available Data not available
Bank of India Small Cap Fund Direct Growth Plan 24.01% 20.78% 19.46%
Motilal Oswal Small Cap Fund Direct Growth Plan 20.97% Data not available Data not available
Union Small Cap Fund Direct Growth Plan 19.13% 16.51% 16.73%
ITI Small Cap Fund Direct Growth Plan 18.42% 23.82% 18.62%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

Against this peer set, the fund’s 1-year return is clearly below the stronger recent numbers, even though it still stays positive. The longer picture is more balanced: its 3-year return is close to the middle of the available set, while its 5-year return sits below some peers that have both medium- and long-term numbers available.

The comparison therefore tells two different stories. On a shorter horizon, the fund looks relatively muted versus peers that have had a stronger recent run. On the longer horizon, it remains competitive enough to show that it has participated in the small-cap cycle, but not with the same force as the better-performing peers in the table.

Source data date: as of 15 Sep 2026

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Portfolio: where your money goes

Holding Sector Weight
Net Current Assets Cash & Cash Equivalents and Net Assets 3.96%
Eq – Navin Fluorine International L Chemicals 2.52%
Eq – Karur Vysya Bank Ltd. Bank 2.48%
Eq – Acutaas Chemicals Limited Healthcare 2.33%
Eq – Ujjivan Small Finance Bank Ltd Bank 2.21%
Eq – TD Power Systems Ltd. Capital Goods 1.86%
Eq – City Union Bank Bank 1.84%
Eq – Aster DM Quality Care Limited Healthcare 1.78%
Eq – Marksans Pharma Ltd. Healthcare 1.75%
Eq – Affle 3I Limited IT 1.69%

The top 10 holdings account for approximately 22.42% of the portfolio.

To see all holdings, visit the UTI Small Cap Fund Direct Growth Plan page

The largest disclosed position is Net Current Assets at 3.96%, and the next few positions are not far behind, which suggests no single holding dominates the visible book. The weight then steps down gradually through chemicals, banks, healthcare and capital goods, so the top slice looks diversified rather than highly concentrated in one name.

At the same time, the displayed top 10 add up to 22.42% across 83 disclosed holdings, so most of the portfolio sits further down the list. That pattern may reduce single-stock dependence, but it also means the fund likely relies on a broad tail of smaller positions for overall outcome. For a small-cap fund, that balance can be useful when the manager wants to spread risk across many ideas.

Because the weights are spread across several sectors and the top positions are all relatively modest, the portfolio may be shaped more by stock selection across a long list than by one or two very large bets. That can make the return stream more dependent on how well many smaller positions behave over time.

Source data date: as of 15 Sep 2026

Who should invest

This fund suits investors who can live with High Risk volatility and who have a multi-year horizon. The 1-year result is much weaker than the 3-year and 5-year patterns, so the short term may not reflect the fund’s longer compounding ability.

The benchmark comparison is mixed, with the fund ahead over 1 year, slightly behind over 3 years and slightly ahead over 5 years. That makes it more appropriate for investors who are comfortable with uneven paths and want small-cap exposure rather than smooth compounding.

The main trade-off is accepting sharp fluctuations in exchange for the possibility of better longer-term participation in the small-cap segment. The portfolio is spread across many holdings, which may help reduce dependence on any one stock, but it does not remove the inherent volatility of the asset class.

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: 1% if units are sold on or before 1 year; nil after 1 year.

Source data date: as of 15 Sep 2026

Frequently asked questions

What is the current NAV of UTI Small Cap Fund Direct Growth Plan?
It is ₹29.3852 as of 15 Sep 2026.

How have the fund’s 1-year, 3-year and 5-year returns looked?
The returns are 4.31% over 1 year, 13.1% over 3 years and 14.82% over 5 years.

How does it compare with the benchmark?
It is ahead of the benchmark over 1 year and 5 years, but slightly behind over 3 years. The benchmark returns are 3.15%, 13.52% and 13.83% for those periods.

Which peer fund has the strongest 1-year return in the comparison set?
TRUSTMF Small Cap Fund Direct Growth Plan shows the strongest 1-year return among the listed peers at 28.42%. Several peers have longer-term figures available as well, while some entries do not.

What is the minimum SIP amount?
The minimum SIP amount is ₹500.

Who manages the fund and what is the exit load?
The fund is managed by Nitin Jain. The exit load is 1% if units are sold on or before 1 year, and nil after 1 year.

Bottom line

UTI Small Cap Fund Direct Growth Plan shows a clear contrast between a softer recent year and a better longer-term track record. It is broadly competitive against the benchmark across the full period set, although peers in the comparison table have delivered much stronger recent one-year numbers. The portfolio is spread across 83 disclosed holdings, with the top 10 forming a modest slice of assets, which suggests a diversified small-cap approach rather than a concentrated portfolio. It is most relevant for investors who can accept volatility and stay invested long enough for the longer-term pattern to matter.

Published on 16 September 2026 at 5:18 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.



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