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 ₹258.795 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.

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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

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.