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

Bandhan Small Cap Fund Direct Growth Plan has a NAV of ₹57.343 as of 27 August 2026 and scheme AUM of ₹31,103 Cr. Its 1-year, 3-year and 5-year returns are 14.7507%, 26.4819% and 20.7354%, and the fund sits in the High Risk bucket. Our view is that the fund has rewarded patient investors over longer stretches, but its small-cap tilt means the ride can stay uneven even when the medium-term compounding remains strong.

The portfolio is dominated by small-cap exposure and has meaningful finance and IT weight, so the fund can behave differently from broader equity funds. That mix makes it more suitable for investors who can stay invested through volatility and want a small-cap-led equity allocation rather than a steadier, lower-variability fund.

Quick facts

Item	Details
NAV	₹57.343
AUM	₹31,103 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; no exit load after holding period
Fund Managers	Manish Gunwani, Kirthi Jain

The fund is managed by Manish Gunwani and Kirthi Jain.

Source data date: as of 27 Aug 2026

Performance

Period	Fund return	Benchmark return
1M	3.60%	3.90%
3M	8.48%	8.48%
1Y	14.75%	8.56%
3Y	26.48%	14.23%
5Y	20.74%	15.79%

The recent picture is mixed but still constructive. Over 1 month, the fund slightly trailed the benchmark, and over 3 months both were aligned at 8.48%, which suggests the recent move has been broad-based rather than fund-specific.

The 1-year number is stronger than the benchmark by a clear margin, so the fund has recovered better than the benchmark over the last year. That matters because small-cap funds often look very different over shorter windows, and a lead over the index at this horizon indicates the portfolio has handled the recent phase better than the benchmark.

The 3-year and 5-year figures are the more useful part of the story. The fund’s 26.48% and 20.74% returns remain well ahead of the benchmark’s 14.23% and 15.79%, which points to sustained compounding rather than a single short burst. The longer path has not been smooth, though: the return pattern shows noticeable swings before the stronger multi-year trend resumed.

For investors, the main takeaway is that this is not a defensive small-cap fund. The longer-term edge versus the benchmark is real, but the ups and downs around that trend are equally visible, so the investment case depends on patience and comfort with sharp interim fluctuations.

Source data date: as of 27 Aug 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?

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
Bandhan Small Cap Fund Direct Growth Plan	14.7507%	26.4819%	20.7354%
TRUSTMF Small Cap Fund Direct Growth Plan	34.453%	Data not available	Data not available
Bank of India Small Cap Fund Direct Growth Plan	29.8577%	23.6915%	21.6131%
Motilal Oswal Small Cap Fund Direct Growth Plan	27.3968%	Data not available	Data not available
Union Small Cap Fund Direct Growth Plan	26.5565%	19.2487%	19.1461%
ITI Small Cap Fund Direct Growth Plan	24.4962%	27.0623%	20.7449%

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

The fund’s 1-year return trails several peers that have available 1-year figures, so the near-term comparison is not the strongest part of its case. Even so, its 3-year return is ahead of the available 3-year figures for Bank of India Small Cap Fund Direct Growth Plan, Union Small Cap Fund Direct Growth Plan and ITI Small Cap Fund Direct Growth Plan, while its 5-year return remains close to ITI Small Cap Fund Direct Growth Plan and ahead of the other peer figures shown here.

That means the short-term and longer-term comparisons tell different stories. The recent year looks softer versus some peers, but the longer horizon still supports the fund’s compounding record. For investors, the key question is whether they value consistency in recent relative strength or are comfortable relying more on the steadier multi-year pattern.

Source data date: as of 27 Aug 2026

Portfolio: where your money goes

The market-cap mix is heavily tilted to small caps at 69.13%, with 13.81% in mid caps, 6.12% in large caps and 10.94% in other categories. That structure tells us the fund is designed to stay close to the small-cap space rather than soften it with a large-cap bias.

Sector	Weight	Top holdings
FINANCE	21.57%	MULTI COMMODITY EXCHANGE OF INDIA LIMITED (8.78%), ANGEL ONE LIMITED (2.58%)
IT	11.14%	ECLERX SERVICES LIMITED (7.8%), INFO EDGE (INDIA) LIMITED (0.88%)
CASH & CASH EQUIVALENTS AND NET ASSETS	8.39%	TRIPARTY REPO TRP_020426_VAL (1.13%), TRIPARTY REPO TRP_040526 (1.09%)
BANK	7.57%	KOTAK MAHINDRA BANK LIMITED (1.6%), THE SOUTH INDIAN BANK LIMITED (1.52%)
HEALTHCARE	7.53%	YATHARTH HOSPITAL AND TRAUMA CARE SERVICES LIMITED (0.97%), JUBILANT PHARMOVA LIMITED (0.89%)

Finance is the largest sector by a wide margin at 21.57%, so it is likely to have greater influence on the fund’s day-to-day behaviour than the other named sectors. IT at 11.14% is the next meaningful sleeve, but it is materially smaller, which keeps the portfolio from looking sector-balanced in a strict sense.

The holding list also shows one stock with a noticeably higher weight inside finance and another in IT, which can add to sector-specific movement. At the same time, the cash and cash-equivalents sleeve at 8.39% gives some room for liquidity and can slightly moderate immediate deployment risk. Overall, the mix still looks dominated by small-cap equity exposure, so swings in sector sentiment may matter more than in a diversified multi-cap style fund.

Source data date: as of 27 Aug 2026

Who should invest

This fund suits investors who are comfortable with High Risk equity exposure and who can stay invested through uneven periods. The 1-year result is solid, but the stronger case comes from the 3-year and 5-year numbers, which suggests that the fund has worked better as a patient holding than as a short-term allocation.

The main trade-off is clear: you get strong small-cap participation and a history of better longer-term compounding than the benchmark, but you also accept sharper short-term swings and sector-driven movement. Investors with a long horizon and a willingness to tolerate volatility may find the profile more relevant than those who want smoother monthly outcomes.

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 27 Aug 2026

Frequently asked questions

What is the current NAV of Bandhan Small Cap Fund Direct Growth Plan?

The current NAV is ₹57.343 as of 27 August 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The fund’s returns are 14.7507% for 1 year, 26.4819% for 3 years and 20.7354% for 5 years.

How does it compare with the benchmark?

It has outperformed the Nifty Small Cap benchmark over 1 year, 3 years and 5 years. The gap is especially visible over the multi-year periods, where the fund’s returns are noticeably higher.

What is the minimum SIP amount?

The minimum SIP amount is ₹100.

What is the risk category of this fund?

The fund is tagged as High Risk, which fits its small-cap heavy portfolio and its uneven return pattern across shorter windows.

Who manages the 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 showing but a stronger long-term record, with 3-year and 5-year returns that stay ahead of the benchmark. Its peer comparison is less flattering over 1 year, yet the multi-year figures still support the fund’s compounding case. The portfolio remains heavily small-cap focused, led by finance and IT, so the fund is best understood as a high-volatility equity option for investors who can tolerate sector swings and wait for the longer horizon to matter.

Published on 28 August 2026 at 10:39 AM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore 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.