HDFC NIFTY Smallcap 250 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 18, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
HDFC NIFTY Smallcap 250 Index Fund Direct Growth Plan had a NAV of ₹19.6463 as of 17 Sep 2026 and a scheme AUM of ₹774 Cr. Its 1-year, 3-year and 5-year returns are 3.76%, 13.27% and 0%, and the risk category is High Risk. Our view is that this fund suits investors who can tolerate sharp swings and want small-cap exposure through an index format, but the recent return pattern is still uneven relative to the benchmark.
The fund has recovered over the 3-year period after a weak 1-year stretch, yet the benchmark has lagged over the same windows. That makes the fund better suited to a long horizon and a comfort level with volatility, rather than investors looking for steadier near-term outcomes.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹19.6463 as of 17 Sep 2026 |
| AUM | ₹774 Cr |
| Expense Ratio | 0.3% |
| Launch Date | 21 Apr 2023 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | No exit load |
| Fund Managers | Arun Agarwal, Nandita Menezes |
The fund is managed by Arun Agarwal and Nandita Menezes.
Source data date: as of 17 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -1.82% | -3.66% |
| 3M | 2.46% | -3.71% |
| 1Y | 3.76% | -7.13% |
| 3Y | 13.27% | 5.82% |
| 5Y | Data not available | Data not available |
The recent numbers show a mixed but improving picture. Over 1 month, the fund was down, but it still fell less than the benchmark. Over 3 months and 1 year, the fund turned positive while the benchmark stayed negative, which suggests the scheme has held up better in the recent recovery phase.
The longer view is more constructive. The 3-year return is 13.27%, which is comfortably ahead of the benchmark’s 5.82%. That tells us the fund’s recovery has not been limited to one short stretch; it has also compounded better over a fuller market cycle.
The 5-year figure is not available because the fund has not been around for a full five years. So the better way to read this scheme is through its post-launch record: choppy short-term movements, but a stronger 3-year outcome than the benchmark. For a small-cap index fund, that combination is useful, but it still comes with a high level of volatility.
Source data date: as of 17 Sep 2026
Should you BUY or HOLD HDFC 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 HDFC NIFTY Smallcap 250 Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| HDFC NIFTY Smallcap 250 Index Fund Direct Growth Plan | 3.76% | 13.27% | Data not available |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 29.31% | 30.01% | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 21.45% | Data not available | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 21.13% | Data not available | Data not available |
| Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan | 20.68% | Data not available | Data not available |
| ICICI Pru Nifty Pharma Index Fund Direct Growth Plan | 17.57% | 18.84% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The fund’s 1-year return is well below the stronger peer returns shown here, while its 3-year figure is also lower than the best available peer numbers. Even so, the comparison is not one-sided: the fund has outpaced the benchmark across the same periods, which means its own path has been better than the benchmark’s recent trajectory. The short-term and longer-term peer readings do tell different stories, because the fund looks modest next to the peer set on absolute return, but more resilient than the benchmark on relative movement.
Source data date: as of 17 Sep 2026
Want to know more? Log in to Univest for more mutual fund insights.
Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Sona BLW Precision Forgings | Automobile & Ancillaries | 1.65% |
| Ather Energy Limited | Domestic Equities | 1.49% |
| Karur Vysya Bank Ltd. | Bank | 1.49% |
| Navin Fluorine International Ltd. | Chemicals | 1.45% |
| Welspun Corp Limited | Iron & Steel | 1.42% |
| Piramal Finance Ltd. | Finance | 1.26% |
| Delhivery Limited | Logistics | 1.16% |
| HFCL Ltd | Telecom | 1.16% |
| Central Depository Services (India) Ltd. | Business Services | 1.13% |
| RBL Bank Ltd. | Bank | 1.07% |
The largest holding, Sona BLW Precision Forgings, is 1.65%, so no single stock is large enough to dominate the portfolio on its own. The move from the first holding to the tenth is also fairly gradual, slipping only to 1.07%, which suggests the top slice is spread across similarly sized positions rather than concentrated in one or two oversized bets.
The top 10 holdings together account for approximately 13.28% of the portfolio, and the scheme discloses 62 holdings in total. That points to a long tail beyond the top positions, so the visible holdings may influence returns, but they do not capture the full spread of the portfolio. In our view, the structure looks diversified across many small positions, even though the fund still remains exposed to the smaller-company segment of the market.
To see all holdings, visit the HDFC NIFTY Smallcap 250 Index Fund Direct Growth Plan page
Source data date: as of 17 Sep 2026
Who should invest
This fund fits investors who are comfortable with High Risk exposure and can stay invested through uneven stretches. The 1-year return has been modest, but the 3-year result is meaningfully stronger, which makes a longer holding period more relevant than short-term performance.
The benchmark comparison also matters here: the fund has done better than the benchmark over the periods shown, but the peer set has delivered much stronger recent 1-year numbers in several cases. So the main trade-off is between the possibility of higher small-cap participation over time and the likelihood of sharp swings along the way.
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 |
No exit load applies if units are sold anytime.
Source data date: as of 17 Sep 2026
Frequently asked questions
What is the current NAV of HDFC NIFTY Smallcap 250 Index Fund Direct Growth Plan?
The current NAV is ₹19.6463 as of 17 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
Its 1-year return is 3.76%, its 3-year return is 13.27%, and its 5-year return is Data not available.
How has the fund performed against its benchmark?
It has outperformed the benchmark across the periods shown. The fund’s 1-year return is 3.76% versus the benchmark’s -7.13%, and its 3-year return is 13.27% versus 5.82%.
How does it compare with the peer funds listed here?
Its 1-year return is lower than several of the peer returns shown, while its 3-year return is also below the strongest peer numbers available. Even so, it has compared more favourably with the benchmark than with the peer group on recent performance.
Is there a minimum SIP amount?
Yes, the minimum SIP amount is ₹100.
Who manages the fund and is there an exit load?
The fund is managed by Arun Agarwal and Nandita Menezes. No exit load applies if units are sold anytime.
Bottom line
This fund’s recent path is mixed, but the 3-year result is stronger than its 1-year performance and clearly ahead of the benchmark over the same horizons. That said, the peer comparison shows that some other funds in the list have posted much higher recent returns. The portfolio is spread across 62 holdings, with the top 10 contributing only a modest share, so the scheme may behave like a broad small-cap basket rather than a concentrated stock pick. It fits investors who can tolerate High Risk and want a longer horizon.
Published on 18 September 2026 at 1:05 PM IST
Explore mutual funds with Univest
Review mutual fund data, compare performance and explore fund insights on Univest.
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.