Bandhan Small Cap Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- August 28, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Bandhan Small Cap Fund Direct Growth Plan has a NAV of ₹56.436 as of 15 Sep 2026 and scheme AUM of ₹34,176 Cr. Its 1-year, 3-year and 5-year returns are 9.1%, 23.91% and 19.04% respectively, and the scheme sits in the High Risk category. Our view is that the fund has delivered strong longer-term compounding with a softer near-term run, while its small-cap mandate and portfolio shape keep volatility an important part of the experience.
The fund is more suitable for investors who can stay invested through uneven market phases and want exposure to a portfolio that can move sharply in both directions. The combination of high risk, a small-cap benchmark and a meaningful cash-like holding means the return path may not be smooth, even if the multi-year outcome has been healthy.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹56.436 as of 15 Sep 2026 |
| AUM | ₹34,176 Cr |
| Expense Ratio | 0.4% |
| Launch Date | 25 Feb 2020 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty Small Cap |
| Fund Category | Equity |
| Exit Load | 1% on or before 1Y |
| Fund Managers | Manish Gunwani, Kirthi Jain |
The fund is managed by Manish Gunwani and Kirthi Jain.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.47% | -2.29% |
| 3M | 4.56% | 3.01% |
| 1Y | 9.1% | 3.15% |
| 3Y | 23.91% | 13.52% |
| 5Y | 19.04% | 13.83% |
The recent pattern is mixed, but the fund has stayed ahead of the benchmark across every published period. Over 1 month, it slipped less than the benchmark, which tells us the fund was not immune to short-term pressure, but it held up better than the index.
The 3-month figure is stronger than the benchmark, and the 1-year return is clearly ahead as well. That matters because it suggests the fund has regained momentum after a choppy stretch rather than relying only on one strong month. For investors tracking small-cap exposure, the gap versus the benchmark at 1 year is meaningful.
The longer horizon is where the case becomes more convincing. The 3-year return of 23.91% and the 5-year return of 19.04% both exceed the benchmark’s 13.52% and 13.83% respectively. The path has not been linear, but the multi-year outcome points to stronger compounding than the benchmark over both medium and longer holding periods.
Our read is that the fund has shown resilience through drawdowns and recovery phases, which is typical for a small-cap strategy, but the swings are still visible. The recent numbers do not look as smooth as the 3-year and 5-year outcomes, so the fund appears to reward patience more than short holding periods.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Bandhan 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.
Already holding Bandhan Small Cap? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Bandhan Small Cap Fund Direct Growth Plan | 9.1% | 23.91% | 19.04% |
| TRUSTMF Small Cap Fund Direct Growth Plan | 28.42% | Data not available | Data not available |
| Bank of India Small Cap Fund Direct Growth Plan | 27.67% | 21.4% | 20.49% |
| 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% |
| DSP Small Cap Fund Direct Growth Plan | 18.51% | 16.99% | 18.84% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On 1-year performance, the fund trails several peers in the table, especially the stronger short-term returns posted by TRUSTMF Small Cap Fund Direct Growth Plan and Bank of India Small Cap Fund Direct Growth Plan. That means the latest year has been competitive but not the standout part of the story.
The longer view is more balanced. The fund’s 3-year return is higher than the peers with available 3-year figures shown here, and its 5-year return also sits above the available longer-term peer figures in this table. So the short-term picture looks softer than several peers, while the multi-year picture is comparatively stronger.
For us, that split matters. This fund has not been the most forceful recent performer in the peer set, but the available longer-horizon numbers suggest it has compounded more effectively than a number of alternatives that have stronger one-year figures.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Triparty Repo TRP_010926 | Cash & Cash Equivalents and Net Assets | 13.1% |
| REC Limited | Finance | 2.42% |
| Sobha Limited | Realty | 2.4% |
| LT Foods Limited | FMCG | 2.1% |
| State Bank of India | Bank | 1.88% |
| Cyient Limited | IT | 1.66% |
| Cholamandalam Financial Holdings Limited | Finance | 1.63% |
| Arvind Limited | Textile | 1.56% |
| The South Indian Bank Limited | Bank | 1.48% |
| Paradeep Phosphates Limited | Chemicals | 1.38% |
The largest disclosed holding is Triparty Repo TRP_010926 at 13.1%, which is unusually large relative to the rest of the visible portfolio. The tenth holding is 1.38%, so the weight falls off sharply after the top slot and then becomes much more evenly distributed among the next positions.
The top 10 disclosed holdings account for approximately 29.61% of the portfolio, while the full disclosed holding count is 55. That tells us the scheme has a long tail beyond the visible names, so the portfolio may be less dominated by the top 10 than a concentrated small-cap basket would be, even though the single largest disclosed position is still meaningful.
From an investor’s perspective, this mix may reduce reliance on a very small number of stocks, but it does not remove small-cap style volatility. The visible holdings show exposure across finance, realty, FMCG, banking, IT, textile and chemicals, which suggests breadth across sectors rather than a narrow thematic bet.
To see all holdings, visit the Bandhan Small Cap Fund Direct Growth Plan page
Source data date: as of 15 Sep 2026
Who should invest
This fund suits investors who can tolerate High Risk exposure and stay invested for multiple years. The 1-year result is positive but clearly less compelling than the 3-year and 5-year outcomes, so patience is important if the objective is to let small-cap compounding work through market swings.
The benchmark comparison is helpful because the fund has stayed ahead of Nifty Small Cap across the visible periods, but the path has not been smooth. Investors who want a steadier return pattern may find the swings uncomfortable, while those who accept short-term volatility in exchange for stronger multi-year potential may view it more favourably.
The main trade-off is straightforward: there is potential for better long-term compounding, but the journey can be uneven and the portfolio includes a meaningful cash-like component alongside a broad spread of smaller positions. That makes it better suited to investors who can handle fluctuations without reacting too quickly.
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% on or before 1Y.
No exit load after holding period.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of Bandhan Small Cap Fund Direct Growth Plan?
The current NAV is ₹56.436 as of 15 Sep 2026.
How has Bandhan Small Cap Fund Direct Growth Plan performed over 1 year, 3 years and 5 years?
Its 1-year return is 9.1%, its 3-year return is 23.91% and its 5-year return is 19.04% as of 15 Sep 2026.
How does the fund compare with its benchmark?
It has outpaced Nifty Small Cap across all the visible periods: 1M, 3M, 1Y, 3Y and 5Y. The gap is especially clear over 3 years and 5 years.
Which peer funds have stronger 1-year returns in the comparison table?
TRUSTMF Small Cap Fund Direct Growth Plan, Bank of India Small Cap Fund Direct Growth Plan, Motilal Oswal Small Cap Fund Direct Growth Plan, Union Small Cap Fund Direct Growth Plan and DSP Small Cap Fund Direct Growth Plan all show higher 1-year returns than this fund in the comparison table.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
Who manages this fund and what is the exit load?
The fund is managed by Manish Gunwani and Kirthi Jain. The exit load is 1% on or before 1 year, and there is no exit load after the holding period.
Bottom line
Bandhan Small Cap Fund Direct Growth Plan has a mixed short-term picture but a stronger medium- and long-term track record versus the benchmark. The fund sits in the High Risk category, so the ride can be uneven, but the return pattern suggests that patient investors have historically been better rewarded than short-term holders. The visible portfolio also shows a broad spread across sectors, with one large cash-like position and a long tail of holdings. That combination makes it better suited to investors who can accept volatility in pursuit of small-cap growth.
Published on 16 September 2026 at 2:40 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.