DSP Small Cap Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- August 31, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
DSP Small Cap Fund Direct Growth Plan has a NAV of ₹258.795 as of 08 Sep 2026 and a scheme AUM of ₹20,220 Cr. Its 1-year, 3-year and 5-year returns are 19.68%, 17.43% and 19.07% respectively, and the fund sits in the High Risk category. Our view is that it has delivered a steady long-term compounding profile, but the short-term path has been uneven, so it suits investors who can stay with small-cap volatility through full market cycles.
The fund’s benchmark comparison is useful: it has stayed ahead of the Nifty Small Cap across 1-year, 3-year and 5-year periods, while the margin varies by horizon. With a small-cap mandate, a direct growth structure and a portfolio that includes a meaningful cash-and-equivalents position, the fund looks better suited to investors who can tolerate sharp swings in returns and are comfortable with a longer holding period.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹258.795 as of 08 Sep 2026 |
| AUM | ₹20,220 Cr |
| Expense Ratio | 0.77% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty Small Cap |
| Fund Category | Equity |
| Exit Load | 1% before 12M, Nil on or after 12M |
| Fund Managers | Vinit Sambre |
The fund is managed by Vinit Sambre.
Source data date: as of 08 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 3.11% | 0.99% |
| 3M | 12.56% | 9.13% |
| 1Y | 19.68% | 7.38% |
| 3Y | 17.43% | 15.46% |
| 5Y | 19.07% | 14.62% |
The recent pattern is stronger than the benchmark across all reported windows, especially over 1 year, where the fund’s return is materially ahead of the index. That gap narrows over 3 years and 5 years, but the fund still keeps a lead. This tells us the strategy has not only participated in the small-cap cycle; it has also added some extra lift over time.
The short-term record is more uneven than the longer-term picture. Over 1 month and 3 months, the line of returns has moved up and down in a way that is typical of small-cap portfolios, which can react sharply to sentiment shifts. Even so, the fund has recovered well enough to leave the benchmark behind in each period.
Across 3 years and 5 years, the compounding profile looks more dependable than the recent month-to-month path. The 5-year return is particularly important here because it shows that the fund has turned short bursts of weakness into a strong longer-run outcome. Our read is that the fund has behaved like an active small-cap portfolio that can absorb volatility and still compound through it.
Source data date: as of 08 Sep 2026
Should you BUY or HOLD DSP 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 DSP Small Cap? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| DSP Small Cap Fund Direct Growth Plan | 19.68% | 17.43% | 19.07% |
| TRUSTMF Small Cap Fund Direct Growth Plan | 35.81% | Data not available | Data not available |
| Bank of India Small Cap Fund Direct Growth Plan | 28.72% | 22.1% | 20.86% |
| Union Small Cap Fund Direct Growth Plan | 26.58% | 17.85% | 18.19% |
| Motilal Oswal Small Cap Fund Direct Growth Plan | 26.38% | Data not available | Data not available |
| ITI Small Cap Fund Direct Growth Plan | 25.39% | 25.36% | 19.49% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The fund trails several peers on the 1-year figure in the table, even though it has stayed ahead of the benchmark. That makes the recent comparison less about standout short-term strength and more about solid but not exceptional small-cap participation.
The longer-term picture is more balanced. Its 3-year and 5-year returns are competitive, but some peers with available data have done better over the same spans, so the fund looks more like a consistent performer than a dominant one. The shorter-term and longer-term views do not fully match: recent returns are respectable, while multi-year comparisons show a steadier but less eye-catching profile.
Source data date: as of 08 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| TREPS / Reverse Repo Investments | Cash & Cash Equivalents and Net Assets | 12.56% |
| Lumax Auto Technologies Ltd | Automobile & Ancillaries | 4.14% |
| Kirloskar Oil Engines Ltd | Automobile & Ancillaries | 3.81% |
| Thangamayil Jewellery Ltd | Diamond & Jewellery | 3.7% |
| Sansera Engineering Ltd | Automobile & Ancillaries | 2.93% |
| SPR Auto Technologies Ltd | Automobile & Ancillaries | 2.35% |
| Jubilant Ingrevia Ltd | Chemicals | 2.18% |
| Dodla Dairy Ltd | FMCG | 2.1% |
| Welspun Corp Ltd | Iron & Steel | 2.1% |
| LT Foods Ltd | FMCG | 2.03% |
The top 10 holdings account for approximately 37.9% of the portfolio.
To see all holdings, visit the DSP Small Cap Fund Direct Growth Plan page
The largest disclosed holding is TREPS / Reverse Repo Investments at 12.56%, which is sizeable for a single line item and may help explain why the portfolio does not appear fully concentrated in operating businesses alone. The next nine holdings are much smaller, with the tenth position at 2.03%, so the weight drops sharply after the first few names.
That pattern suggests the visible book is spread across multiple mid-sized positions rather than dominated by one or two very large equity bets. At the same time, the combined weight of the ten disclosed holdings is 37.9% and the fund has 68 holdings in total, so the portfolio likely has a meaningful tail beyond the headline positions. Our read is that the largest holdings may influence results, but not in a way that makes the portfolio narrowly dependent on just a handful of stocks.
Source data date: as of 08 Sep 2026
Who should invest
This fund fits investors who are comfortable with High Risk and can stay invested through uneven small-cap swings. The 1-year result is strong, but the path has not been smooth, so short holding periods are unlikely to capture the fund’s full potential.
The better fit is a long-term horizon, ideally one that can absorb cycles across several years. The main trade-off is accepting volatility in exchange for the possibility of stronger compounding than the benchmark and a portfolio that is not concentrated in only a few very large positions. That makes it more suitable for investors who can remain patient when small-cap sentiment weakens.
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 before 12 months; nil on or after 12 months.
Source data date: as of 08 Sep 2026
Frequently asked questions
What is the current NAV of DSP Small Cap Fund Direct Growth Plan?
Its NAV is ₹258.795 as of 08 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 19.68% for 1 year, 17.43% for 3 years and 19.07% for 5 years.
How does the fund compare with the Nifty Small Cap benchmark?
It has stayed ahead of the benchmark across 1-year, 3-year and 5-year periods. The fund’s return profile is also stronger in the short term, which shows that it has added value versus the index over multiple horizons.
How does it compare with peer small-cap funds on recent returns?
Its 1-year return is below several peers in the table, though it remains ahead of the benchmark. Over 3 years and 5 years, the comparison is more mixed because some peers with available data have done better while others have done less well.
What is the minimum SIP amount?
There is no minimum SIP amount stated here.
What risk profile and exit load should investors note?
The fund is classified as High Risk. The exit load is 1% if units are sold before 12 months and nil on or after 12 months; the portfolio’s largest disclosed holding is TREPS / Reverse Repo Investments at 12.56%.
Bottom line
This fund has been stronger over the longer run than the benchmark, even though the recent path has been uneven. Compared with peers, the available return figures show a mixed picture: the fund is competitive, but not the standout name across every horizon. Its High Risk profile and small-cap mandate mean investors need patience, while the portfolio’s mix of cash-like exposure and a wide set of holdings suggests the outcome is not driven by only a few stocks. It suits long-horizon investors who can live with volatility in exchange for compounding potential.
Published on 9 September 2026 at 1:25 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.