Tata Small Cap Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- August 28, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Tata Small Cap Fund Direct Growth Plan currently has a NAV of ₹44.0689 as of 15 September 2026, with scheme assets of ₹13,093 Cr. Its 1-year, 3-year and 5-year returns are 0.2%, 11.71% and 15.82%, and the fund is in the High Risk category.
Our view is that this is a small-cap fund for investors who can accept sharp swings and a long holding period. The recent 1-year result has been weak, but the 3-year and 5-year numbers show a more constructive longer-term pattern, while the portfolio remains tilted toward individual stock ideas rather than broad diversification.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹44.0689 as of 15 Sep 2026 |
| AUM | ₹13,093 Cr |
| Expense Ratio | 0.33% |
| Launch Date | 12 Nov 2018 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty Small Cap |
| Fund Category | Equity |
| Exit Load | 0.50% on or before 30D, Nil after 30D |
| Fund Managers | Chandraprakash Padiyar, Jeetendra Khatri |
The fund is managed by Chandraprakash Padiyar and Jeetendra Khatri.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.94% | -2.29% |
| 3M | 5.63% | 3.01% |
| 1Y | 0.2% | 3.15% |
| 3Y | 11.71% | 13.52% |
| 5Y | 15.82% | 13.83% |
The most recent stretch has been uneven, but not without signs of recovery. Over 1 month, the fund was slightly down, although it still held up better than the benchmark. Over 3 months, it outpaced the index, which suggests the portfolio has been able to participate in a short-term rebound even after a softer patch earlier in the period.
The 1-year return remains modest at 0.2%, well below the benchmark’s 3.15%. That gap tells us the last year has been difficult for unitholders, even though the fund did not lose as much as some peers did over the same horizon. The broader pattern is more balanced over longer horizons: the 3-year return is 11.71%, while the 5-year return improves to 15.82%.
Against the benchmark, the fund trails over 3 years but leads over 5 years. That split matters because it shows the fund’s longer compounding record is better than the very recent 12-month result suggests. For investors, the main takeaway is that this has been a more volatile small-cap path rather than a smooth one, with the latest year looking weaker than the longer trend.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Tata 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 Tata Small Cap? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Tata Small Cap Fund Direct Growth Plan | 0.2% | 11.71% | 15.82% |
| TRUSTMF Small Cap Fund Direct Growth Plan | 28.42% | Data not available | Data not available |
| Bank of India Small Cap Fund Direct Growth Plan | 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.
The fund’s 1-year return is far below the stronger short-term figures shown by several peers, which means the recent period has been comparatively subdued. At the same time, the 3-year and 5-year figures are more competitive than the current 1-year reading, so the story is not simply one of persistent weakness.
On the longer view, the fund’s 5-year return sits above some peers with available histories, but it remains behind peers that have delivered stronger 3-year and 5-year figures. That mix suggests the fund has shown some long-term resilience, yet the peer set still contains several schemes with better intermediate and longer-run outcomes. The short-term and longer-term peer pictures therefore do not point in the same direction.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Sudarshan Chemical Industries Ltd | Chemicals | 4.83% |
| Kirloskar Pneumatic Company Ltd | Capital Goods | 4.58% |
| Usha Martin Ltd | Iron & Steel | 4.42% |
| IDFC First Bank Ltd | Bank | 3.92% |
| Godrej Industries Ltd | Chemicals | 3.42% |
| Cash / Net Current Asset | Cash & Cash Equivalents and Net Assets | 3.24% |
| Tega Industries Ltd | Capital Goods | 3.15% |
| I) Repo | Cash & Cash Equivalents and Net Assets | 3.09% |
| Wockhardt Ltd | Healthcare | 3.02% |
| Cello World Ltd | Trading | 2.72% |
The top 10 holdings account for approximately 36.39% of the portfolio.
To see all holdings, visit the Tata Small Cap Fund Direct Growth Plan page
The largest holding, Sudarshan Chemical Industries Ltd, is 4.83%, so no single stock dominates the portfolio outright. The gap from the top holding to the tenth holding is not extreme, which suggests the fund spreads meaningful weight across several positions rather than relying on one or two very large bets.
At the same time, the listed top 10 still make up 36.39% of the portfolio, so the fund is not evenly spread across all 53 disclosed holdings. Our view is that this structure may allow individual positions to influence returns, while the longer tail can still soften the effect of any one holding. The mix looks moderately concentrated rather than highly concentrated.
Source data date: as of 15 Sep 2026
Who should invest
This fund fits investors who are comfortable with High Risk exposure and who can stay invested through uneven small-cap cycles. The return pattern shows that the latest year has been weak, while the 3-year and 5-year figures are more constructive, so the fund is better suited to a long horizon than to short-term goals.
The main trade-off is clear: investors may accept sharper swings and a difficult near-term patch in exchange for the chance to participate in small-cap recovery over time. The benchmark comparison also shows that relative performance can move around by period, so patience matters. In our view, the fund is more appropriate for investors who can tolerate volatility and wait for the longer compounding story to play out.
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 applies at 0.50% for units sold on or before 30 days. After 30 days, there is no exit load.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of Tata Small Cap Fund Direct Growth Plan?
The current NAV is ₹44.0689 as of 15 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 0.2%, the 3-year return is 11.71% and the 5-year return is 15.82%.
How does the fund compare with its benchmark?
It trails the benchmark over 1 year and 3 years, but it leads the benchmark over 5 years. The benchmark is Nifty Small Cap.
How does it compare with peer small-cap funds on available return data?
Its 1-year return is much lower than several peers in the table, while its 3-year and 5-year figures are more mixed. Some peers have stronger intermediate and long-term returns, but not every peer has complete history for every period.
Is there a minimum SIP amount?
The minimum SIP amount is ₹100.
Who manages the fund and what is the exit load?
The fund is managed by Chandraprakash Padiyar and Jeetendra Khatri. Exit load is 0.50% on or before 30 days, and there is no exit load after 30 days.
Bottom line
Tata Small Cap Fund Direct Growth Plan has a weak 1-year outcome, but its 3-year and 5-year numbers are more stable and compare more favourably with the benchmark over the longer horizon. The portfolio is built around a relatively limited set of leading positions, with chemicals, capital goods and select financial exposure visible in the top holdings. That makes it a fund where stock selection may matter a lot. It is best read as a high-volatility small-cap option for investors who can handle uneven near-term performance and wait for longer-term compounding.
Published on 16 September 2026 at 8:59 AM 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.