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

Edelweiss Small Cap Fund Direct Growth Plan has a NAV of ₹52.318 as of 15 September 2026 and manages ₹7,252 Cr. Its 1-year, 3-year and 5-year returns are 9.89%, 14.91% and 17.4%, and the scheme sits in the High Risk bucket.

Our view is that the fund has rewarded patient investors better over longer periods than in the near term, but the recent patch has been softer. The portfolio is spread across 74 holdings, yet the top positions still matter, so this is best suited to investors who can accept sharp swings in a small-cap equity fund.

Quick facts

Particular	Details
NAV	₹52.318 as of 15 Sep 2026
AUM	₹7,252 Cr
Expense Ratio	0.43%
Launch Date	07 Feb 2019
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty Small Cap
Fund Category	Equity
Exit Load	1% on or before 90D, Nil after 90D
Fund Managers	Dhruv Bhatia, Trideep Bhattacharya, Raj Koradia

The fund is managed by Dhruv Bhatia, Trideep Bhattacharya and Raj Koradia.

Source data date: as of 15 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-3.88%	-2.29%
3M	3.17%	3.01%
1Y	9.89%	3.15%
3Y	14.91%	13.52%
5Y	17.4%	13.83%

The recent trend is mixed. Over one month, the fund slipped more than the benchmark, which tells us the short-term path has remained choppy rather than smooth. Over three months, however, it was slightly ahead of the index, so the near-term picture is not one-way weak.

The bigger picture is stronger. The 1-year return is well above the benchmark, and that gap remains visible over 3 years and 5 years. The fund has therefore added value over the longer horizon, even though the latest month was softer than the market.

This pattern matters for small-cap investors because the route to long-term gains is rarely linear. The series suggests a fund that has recovered over time and built a better long-run compounding record than its benchmark, but not one that has avoided drawdowns along the way.

For investors comparing it with the index, the key point is that the fund’s edge is clearer over 1 year and beyond than in the freshest data point. That means the case for the fund rests more on patience and consistency of long-term compounding than on short-term momentum.

Source data date: as of 15 Sep 2026

Should you BUY or HOLD Edelweiss 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
Edelweiss Small Cap Fund Direct Growth Plan	9.89%	14.91%	17.4%
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 trails the strongest 1-year peer figures in this set, so its recent return does not stand out on a short-horizon basis. The comparison changes a little over longer periods: its 3-year and 5-year returns are below Bank of India Small Cap Fund Direct Growth Plan and DSP Small Cap Fund Direct Growth Plan, but they remain ahead of some peers with available medium-term data. That gives the fund a more middle-of-the-pack long-term shape than its softer 1-year result suggests.

What stands out is the split between short-term weakness and longer-term steadiness. Some peers show much stronger recent numbers, yet a few also lack complete 3-year or 5-year figures, so the available evidence points to this fund being less about near-term momentum and more about steadier compounding over a fuller cycle.

Source data date: as of 15 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
City Union Bank Ltd.	Bank	3.17%
Karur Vysya Bank Ltd.	Bank	2.64%
Multi Commodity Exchange of India Ltd.	Finance	2.64%
PNB Housing Finance Ltd.	Finance	2.34%
Avalon Technologies Ltd.	Electricals	2.27%
Gabriel India Ltd.	Automobile & Ancillaries	2.18%
Kei Industries Ltd.	Electricals	2.06%
Ajanta Pharma Ltd.	Healthcare	1.94%
Fortis Healthcare Ltd.	Healthcare	1.92%
Radico Khaitan Ltd.	Alcohol	1.84%

The largest holding is City Union Bank Ltd. at 3.17%, which is sizeable but not dominant on its own. The move from 3.17% at the top to 1.84% in the tenth holding is fairly gradual, which suggests the portfolio does not rely on one or two oversized positions for most of its visible weight.

The displayed top ten account for about 23% of the portfolio, while the full disclosed holding count is 74. That points to a mix where the visible leaders matter, but a longer tail of smaller positions is still likely to have an important role in the overall outcome.

Because the top holdings are spread across banking, finance, industrials, healthcare and other areas, the fund may have multiple sources of return rather than a single theme. At the same time, small-cap portfolios can still move sharply, so a broad list of holdings does not remove volatility; it mainly suggests that influence is distributed across more names.

To see all holdings, visit the Edelweiss Small Cap Fund Direct Growth Plan page

Source data date: as of 15 Sep 2026

Who should invest

This fund suits investors who are comfortable with High Risk exposure and can stay invested for several years. The 1-year return has been softer than the 3-year and 5-year figures, but the longer-term track record is still ahead of the benchmark, which makes patience important.

The main trade-off is clear: investors get the potential benefit of small-cap compounding, but they must accept meaningful short-term swings and periods when the fund lags the index. The portfolio’s 74 holdings help spread exposure, yet the strategy still depends on a riskier segment of the market.

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 1% if units are sold on or before 90 days. There is no exit load after 90 days.

Source data date: as of 15 Sep 2026

Frequently asked questions

What is the current NAV of Edelweiss Small Cap Fund Direct Growth Plan?
The NAV is ₹52.318 as of 15 September 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The returns are 9.89% over 1 year, 14.91% over 3 years and 17.4% over 5 years.

How has the fund done versus Nifty Small Cap?
It has been ahead of Nifty Small Cap over 1 year, 3 years and 5 years. The gap is widest over 1 year.

How does it compare with the peer set on available returns?
Its 1-year return is below the strongest peer figures in this set, while its 3-year and 5-year returns are also below some peers with available medium-term data. It still sits ahead of some peers on the longer horizon where figures are available.

Is there a minimum SIP amount?
Yes, the minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?
The fund is managed by Dhruv Bhatia, Trideep Bhattacharya and Raj Koradia. The exit load is 1% on or before 90 days and nil after 90 days.

Bottom line

Edelweiss Small Cap Fund Direct Growth Plan has shown a weaker recent patch than its longer-term record, but the 3-year and 5-year numbers still point to better compounding than the benchmark. In the peer set, its available returns are respectable rather than standout on a short horizon, while the longer-term figures sit below some stronger comparables. The fund’s High Risk profile and diversified 74-holding portfolio make it a better fit for investors who can tolerate volatility and wait for the cycle to work through.

Published on 16 September 2026 at 11:47 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.