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

DSP Small Cap Fund Direct Growth Plan has a NAV of ₹258.521 as of 28 Aug 2026 and a scheme AUM of ₹20,220 Cr. Its 1-year, 3-year and 5-year returns are 20.77%, 19.23% and 19.72%, and the fund carries a High Risk profile. In our view, this is a small-cap-focused option for investors who want long-term growth potential and can tolerate sharp swings along the way.

The portfolio is heavily tilted toward small caps, and the return history shows it has held up well over longer periods while also moving through clear short-term ups and downs. That combination makes it more suitable for an investor with patience and a higher risk tolerance than for someone looking for steady, low-volatility outcomes.

Quick facts

Item	Details
NAV	₹258.521
AUM	₹20,220 Cr
Expense Ratio	0.77%
Launch Date	01 January 2013
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty Small Cap
Fund Category	Equity
Exit Load	1% before 12 months; nil on or after 12 months
Fund Managers	Vinit Sambre

The fund is managed by Vinit Sambre.

Source data date: as of 28 Aug 2026

Performance

Period	Fund return	Benchmark return
1M	5.74%	3.22%
3M	13.83%	9.72%
1Y	20.77%	9.42%
3Y	19.23%	15.13%
5Y	19.72%	15.87%

Recent performance has been constructive. The fund has posted 5.74% over 1 month and 13.83% over 3 months, which suggests a positive short-term run after periods of uneven movement. That pattern fits a small-cap portfolio: the path is rarely linear, but the recent trend has been stronger than the benchmark in each of the displayed windows.

Over 1 year, the fund has returned 20.77% compared with 9.42% for the benchmark. That is a clear gap in the fund’s favour and shows that the recent stretch has been materially better than the index. For a small-cap strategy, that outperformance is important because it tells us the fund has not only participated in the segment’s rise, but has also added value versus the benchmark during the latest cycle.

The longer view remains positive as well. The 3-year return of 19.23% and 5-year return of 19.72% both stay ahead of the benchmark’s 15.13% and 15.87%. The time pattern in the performance path also shows meaningful swings, including periods of drawdown and recovery, so the fund’s record is better understood as a strong long-term compounding journey rather than a smooth climb. In our view, that makes the fund suitable for investors who can stay invested through volatility.

What stands out is that the recent pace has been stronger than the 3-year and 5-year averages, but not in a way that changes the fund’s overall character. The underlying story remains the same: a volatile small-cap portfolio that has generated healthy returns over multiple horizons and has stayed ahead of the benchmark across all the listed periods.

Source data date: as of 28 Aug 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
DSP Small Cap Fund Direct Growth Plan	20.77%	19.23%	19.72%
TRUSTMF Small Cap Fund Direct Growth Plan	36.38%	Data not available	Data not available
Bank of India Small Cap Fund Direct Growth Plan	31.70%	23.70%	21.72%
Motilal Oswal Small Cap Fund Direct Growth Plan	28.44%	Data not available	Data not available
Union Small Cap Fund Direct Growth Plan	27.82%	19.17%	19.11%
ITI Small Cap Fund Direct Growth Plan	26.42%	27.04%	20.77%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the latest 1-year numbers, the fund trails several peers that have reported stronger recent gains, even though it has still delivered a solid positive return. The 3-year and 5-year figures are more balanced: the fund is ahead of some peer returns that are available, but behind others that have compounded faster over the same horizons.

That mix of outcomes suggests a different story at different horizons. The short-term comparison points to a fund that has participated in the small-cap recovery without matching the fastest recent names, while the longer-term comparison shows a steadier competitive position. For investors, that means the fund can be viewed as a consistent small-cap option rather than one driven only by the most recent surge.

Source data date: as of 28 Aug 2026

Portfolio: where your money goes

Market-cap distribution

Market cap	Allocation
Large cap	0%
Mid cap	4.84%
Small cap	81.14%
Other cap	14.02%

Sector and holding mix

Sector	Weight	Top holdings
AUTOMOBILE & ANCILLARIES	18.61%	WABCO INDIA (5.1%), WABCO INDIA LIMITED (3.68%)
IT	17.11%	ECLERX SERVICES LIMITED (11.14%), ECLERX SERVICES (4.55%)
HEALTHCARE	9.67%	THYROCARE TECHNOLOGIES LIMITED (3.61%), IPCA LABORATORIES LIMITED (1.08%)
CAPITAL GOODS	7.19%	KIRLOSKAR PNEUMATIC CO. (1.99%), KIRLOSKAR OIL ENGINES LIMITED (1.84%)
CHEMICALS	6.91%	JUBILANT INGREVIA LIMITED (1.49%), DHANUKA AGRITECH LIMITED (0.9%)

The portfolio is dominated by small-cap exposure at 81.14%, with a modest 4.84% in mid caps and no large-cap allocation. That mix tells us the fund is built for investors who want small-company participation first, not a defensive blend of market-cap buckets. The 14.02% classified as other cap adds some flexibility, but the core identity remains clearly small-cap led.

Among sectors, automobile & ancillaries at 18.61% is the largest, and IT at 17.11% is close behind. Because the gap between those two is narrow, neither appears to dominate the portfolio on its own, although both are likely to matter meaningfully for fund behaviour. Healthcare, capital goods and chemicals follow at lower weights, so their influence is more secondary.

In our view, the largest influence on portfolio behaviour may come from the combination of the small-cap bucket and the two biggest sectors together. Within the listed sector mix, automobile & ancillaries could have slightly greater influence simply because it is the single largest sector, but the overall movement of the fund is still likely to be shaped more by small-cap market conditions than by any one sector alone.

Source data date: as of 28 Aug 2026

Who should invest

This fund suits investors who can accept high portfolio swings and still hold through uncomfortable phases. The High Risk classification and small-cap-heavy allocation mean the ride can be uneven, even though the return record has stayed ahead of the benchmark across 1-year, 3-year and 5-year windows.

We think the fund is better aligned with a long investment horizon rather than a short holding period. Investors who want exposure to small companies and are comfortable with sharper market reactions may find the structure useful, especially if they are looking for a growth-oriented equity allocation.

The main trade-off is straightforward: the fund offers strong growth potential, but that comes with volatility and a portfolio that is heavily concentrated in small caps. It is therefore more appropriate for investors who can tolerate uncertainty in exchange for the possibility of stronger long-term compounding.

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% before 12 months.
• Nil on or after 12 months.

Source data date: as of 28 Aug 2026

Frequently asked questions

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

The current NAV is ₹258.521 as of 28 Aug 2026.

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

The fund’s returns are 20.77% for 1 year, 19.23% for 3 years and 19.72% for 5 years.

How does the fund compare with its benchmark?

It has outperformed the benchmark across the listed periods. The benchmark return is 9.42% for 1 year, 15.13% for 3 years and 15.87% for 5 years.

How does it compare with peer funds on recent returns?

Its 1-year return is below some peer funds that have shown stronger recent gains, while its 3-year and 5-year returns are more competitive against peers with available longer-term figures.

What is the minimum SIP amount?

The minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?

The fund is managed by Vinit Sambre. The exit load is 1% before 12 months and nil on or after 12 months.

Bottom line

DSP Small Cap Fund Direct Growth Plan has combined a strong recent year with a solid multi-year record, and the longer-term returns still sit ahead of the benchmark. The peer set shows a more mixed picture: some funds have stronger recent bursts, but this fund remains competitive over longer periods. Its High Risk profile and 81.14% small-cap allocation make it clearly growth-oriented, and the main investor fit is someone who can accept volatility in exchange for small-cap exposure and long-horizon compounding potential.

Published on 31 August 2026 at 1:29 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.