Nippon India Small Cap Fund(B)-Direct Review 2026: NAV, Returns, Portfolio & Should You Invest?

Nippon India Small Cap Fund(B)-Direct Plan currently has an NAV of ₹209.444 as of 10 Sep 2026 and scheme AUM of ₹82,580 Cr. Its 1-year, 3-year and 5-year returns are 11.1%, 14.84% and 19.3% respectively, and the fund carries a High Risk profile.

Our view is that this is a fund for investors who can tolerate sharp swings in small-cap exposure and stay invested long enough for compounding to work. The longer-term return track is stronger than the short-term phase, while the portfolio is spread across 65 holdings with a meaningful tilt toward capital goods and banks.

Quick facts

Particular	Details
NAV	₹209.444 as of 10 Sep 2026
AUM	₹82,580 Cr
Expense Ratio	0.63%
Launch Date	01 Jan 2013
Risk Category	High Risk
Benchmark	Nifty Small Cap
Fund Category	Equity
Exit Load	1% on or before 1Y, Nil after 1Y
Fund Managers	Samir Rachh

The fund is managed by Samir Rachh.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.39%	0.28%
3M	9.92%	10.76%
1Y	11.1%	5.51%
3Y	14.84%	15.26%
5Y	19.3%	14.5%

The fund has been steadier over the most recent month than the benchmark, but it lagged the index over three months. That shorter-window slip matters because small-cap funds can move unevenly over brief periods, and this one has not been an exception.

The longer picture is more encouraging. The 1-year return is clearly ahead of the benchmark, while the 5-year figure also stays above it. That suggests the strategy has still added value across a full market cycle, even if the path has not been smooth.

The 3-year comparison is closer and slightly trails the benchmark. Taken together, the pattern points to a fund that can outpace its benchmark over longer holding periods, but not in a straight line. For investors, the key question is whether they can sit through periods when the fund runs behind the index and still allow the longer compounding story to play out.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD Nippon India Small Cap Fund(B)-Direct Plan?

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
Nippon India Small Cap Fund Direct Growth Plan	11.1%	14.84%	19.3%
TRUSTMF Small Cap Fund Direct Growth Plan	34.09%	Data not available	Data not available
Bank of India Small Cap Fund Direct Growth Plan	27.56%	21.86%	20.52%
Motilal Oswal Small Cap Fund Direct Growth Plan	24.72%	Data not available	Data not available
Union Small Cap Fund Direct Growth Plan	24.4%	17.51%	17.94%
ITI Small Cap Fund Direct Growth Plan	23.86%	25.25%	19.57%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On the 1-year view, the fund trails several peers that have posted much stronger recent gains, even though it still stays above the benchmark. On the 3-year and 5-year numbers, it is more competitive: it is below Bank of India Small Cap Fund Direct Growth Plan on both periods, but it is close to the benchmark and only modestly behind ITI Small Cap Fund Direct Growth Plan on 5-year return. The short-term and longer-term pictures are therefore different, with recent peer comparisons looking weaker than the multi-year story.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Triparty Repo	Cash & Cash Equivalents and Net Assets	2.59%
Bharat Heavy Electricals Limited	Capital Goods	1.85%
TD Power Systems Limited	Capital Goods	1.82%
Apar Industries Limited	Capital Goods	1.73%
HDFC Bank Limited	Bank	1.71%
Karur Vysya Bank Limited	Bank	1.34%
State Bank of India	Bank	1.28%
Sundram Fasteners Limited	Automobile & Ancillaries	1.24%
Acme Solar Holdings Ltd	Power	1.19%
Sai Life Sciences Limited	Domestic Equities	1.16%

The top 10 holdings account for approximately 15.91% of the portfolio.

To see all holdings, visit the Nippon India Small Cap Fund(B)-Direct Plan page

The single largest disclosed holding is Triparty Repo at 2.59%, which is modest in absolute terms. The next few positions are also close in size, with the fourth holding at 1.73% and the tenth at 1.16%, so the visible list steps down gradually rather than showing a sharp concentration spike.

That shape suggests the portfolio may be diversified across many smaller positions rather than relying on a few dominant bets. The top 10 disclosed holdings together represent 15.91% of the portfolio, while the scheme discloses 65 holdings in total, so a large part of the fund sits beyond the visible top names. In our view, that broader spread could soften single-stock dependence, although the small-cap segment itself can still move unevenly.

Source data date: as of 10 Sep 2026

Who should invest

This fund fits investors who can accept High Risk and who are comfortable with a small-cap strategy that can lag in shorter windows. The 1-year return is positive and ahead of the benchmark, but the 3-year result is slightly behind it, which tells us the ride can be uneven even when the longer trend remains constructive.

The stronger 5-year return and the diversified 65-holding structure make it more suitable for a long horizon rather than for money that needs near-term stability. The main trade-off is clear: you get exposure to a fund that has shown the ability to compound over time, but you must be ready for periods when benchmark comparison and peer comparison both look less compelling.

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, Nil after 1Y.

Source data date: as of 10 Sep 2026

Frequently asked questions

What is the current NAV of Nippon India Small Cap Fund Direct Growth Plan?
The current NAV is ₹209.444 as of 10 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
Its 1-year return is 11.1%, the 3-year return is 14.84%, and the 5-year return is 19.3%.

How has it done against the benchmark?
It is ahead of the benchmark over 1 year and 5 years, but slightly behind over 3 years. The benchmark is Nifty Small Cap.

How does it compare with peer funds on recent returns?
Its 1-year return is lower than several peer funds in the comparison set, while its 3-year and 5-year figures are more competitive. The short-term picture is weaker than the longer-term picture.

Does this fund have a minimum SIP amount mentioned?
No minimum SIP amount is mentioned here. SIP investing is allowed.

What is the risk level, portfolio shape and exit load?
The fund is classified as High Risk, and its visible top 10 holdings account for 15.91% of the portfolio across 65 disclosed holdings. The exit load is 1% on or before 1 year and nil after 1 year.

Bottom line

The fund’s recent stretch is mixed, but the longer record remains stronger, with 5-year returns ahead of the benchmark and a 3-year period that is only slightly softer than the index. Against peers, the short-term comparison looks less forceful, yet the multi-year numbers remain workable. The portfolio is spread across many holdings, with no single visible position dominating the list. Overall, this is best viewed as a high-risk small-cap fund for investors who can stay patient through uneven periods.

Published on 11 September 2026 at 11:16 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.