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

Union Small Cap Fund Direct Growth Plan has a NAV of ₹68.76 as of 08 Sep 2026 and an AUM of ₹2,382 Cr. Its 1-year, 3-year and 5-year returns are 26.58%, 17.85% and 18.19%, and the scheme sits in the High Risk category. Our view is that it suits investors who can accept sharp moves in search of small-cap growth, with the current return pattern still pointing to a higher-volatility equity allocation rather than a steadier, lower-drawdown profile.

The fund has stayed ahead of its benchmark over 1 year, 3 years and 5 years, which supports the case for patient investors. The portfolio is spread across 66 holdings, but the largest positions still matter, so outcomes can depend meaningfully on a handful of stocks.

Quick facts

Particular	Details
NAV	₹68.76 as of 08 Sep 2026
AUM	₹2,382 Cr
Expense Ratio	0.95%
Launch Date	10 Jun 2014
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty Small Cap
Fund Category	Equity
Exit Load	1% on or before 15D, Nil after 15D
Fund Managers	Pratik Dharmshi, Gaurav Chopra

The fund is managed by Pratik Dharmshi and Gaurav Chopra.

Source data date: as of 08 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	3.93%	0.99%
3M	14.68%	9.13%
1Y	26.58%	7.38%
3Y	17.85%	15.46%
5Y	18.19%	14.62%

Recent numbers are strong, with the fund beating the benchmark across 1 month, 3 months and 1 year. The 1-year lead is especially wide, which suggests the fund has participated well in the small-cap rebound over the latest cycle.

The longer run is also constructive. The 3-year and 5-year returns remain ahead of the benchmark, but the gap is narrower than in the latest 1-year window, so the recent stretch looks stronger than the medium-term trend rather than weaker.

The pattern through the time series points to a fund that has absorbed periods of weakness and then rebuilt steadily. That is typical of a higher-volatility small-cap strategy: the path can be uneven, but the compounding trend has remained positive over 3 and 5 years.

For investors, the key point is that the fund has not merely relied on one short burst. It has also stayed ahead of the benchmark over longer windows, which makes the recent momentum more credible than a single-period outlier.

Source data date: as of 08 Sep 2026

Should you BUY or HOLD Union 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
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%	22.10%	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.

On recent returns, the fund sits below the strongest 1-year numbers in this peer set, but it is still close to Motilal Oswal Small Cap Fund Direct Growth Plan and ahead of ITI Small Cap Fund Direct Growth Plan over 1 year. The longer-term picture is more balanced: Bank of India Small Cap Fund Direct Growth Plan and ITI Small Cap Fund Direct Growth Plan show stronger available 3-year figures, while the fund’s 5-year return remains ahead of ITI and above the benchmark.

That mix tells a slightly different story across time horizons. The fund looks competitive on the 5-year measure and acceptable over 3 years, even if the latest 1-year stretch trails the better peer numbers. For investors comparing small-cap options, the shorter-term and longer-term evidence do not point in the same direction, so the emphasis should stay on consistency and risk comfort rather than one strong recent print.

Source data date: as of 08 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Gabriel India Ltd.	Automobile & Ancillaries	3.73%
Karur Vysya Bank Ltd.	Bank	3.67%
Navin Fluorine International Ltd.	Chemicals	3.55%
Kirloskar Oil Engines Ltd.	Automobile & Ancillaries	3.10%
S.J.S. Enterprises Ltd.	Automobile & Ancillaries	3.08%
Ge Vernova T&D India Ltd.	Capital Goods	3.07%
Multi Commodity Exchange of India Ltd.	Finance	2.78%
Ujjivan Small Finance Bank Ltd.	Bank	2.71%
Data Patterns (India) Ltd.	Capital Goods	2.50%
Azad Engineering Ltd.	Capital Goods	2.15%

The top 10 holdings account for approximately 30.34% of the portfolio.

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

The largest holding is Gabriel India Ltd. at 3.73%, which is large enough to matter but not so large that it dominates the portfolio on its own. The gap to the tenth holding, Azad Engineering Ltd. at 2.15%, is not wide, so the top positions are fairly close together rather than heavily skewed to one outsized name.

That said, the displayed holdings only explain part of the portfolio, because the fund reports 66 holdings in total. The top 10 account for 30.34%, so the visible part of the book is meaningful, but a long tail of smaller positions could still shape the overall outcome.

In our view, this structure may allow the fund to benefit from several stock-specific ideas without leaning on a single holding. At the same time, the small-cap universe can move quickly, so even a spread-out portfolio like this may still experience noticeable swings.

Source data date: as of 08 Sep 2026

Who should invest

This fund fits investors who can tolerate High Risk and want small-cap exposure with a willingness to stay invested through uneven stretches. The 1-year return has been stronger than the 3-year and 5-year figures, but the longer-term record still stays ahead of the benchmark, which supports a patient horizon of at least several years.

The main trade-off is between higher return potential and higher volatility. The portfolio is not overly concentrated in one holding, but small-cap stocks can still move sharply, so investors need comfort with price swings and the possibility that short-term periods may look very different from the longer-term trend.

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 15D, Nil after 15D.

Source data date: as of 08 Sep 2026

Frequently asked questions

What is the current NAV of Union Small Cap Fund Direct Growth Plan?
The current NAV is ₹68.76 as of 08 Sep 2026.

What are the 1-year, 3-year and 5-year returns?
The 1-year return is 26.58%, the 3-year return is 17.85% and the 5-year return is 18.19%.

How does the fund compare with its benchmark?
It has outperformed Nifty Small Cap across 1 month, 3 months, 1 year, 3 years and 5 years. The gap is especially wide over 1 year.

How does it compare with peer funds on recent returns?
It trails the strongest 1-year peer figure in the comparison set, but it stays close to Motilal Oswal Small Cap Fund Direct Growth Plan and ahead of ITI Small Cap Fund Direct Growth Plan over 1 year.

What is the minimum SIP amount?
The minimum SIP amount is ₹500.

Who manages the fund and what is the exit load?
The fund is managed by Pratik Dharmshi and Gaurav Chopra. The exit load is 1% on or before 15D and nil after 15D.

Bottom line

Union Small Cap Fund Direct Growth Plan has a stronger recent run than its medium-term numbers, but the longer record still remains ahead of the benchmark, which keeps the case for patient small-cap investors intact. Compared with peers, its latest 1-year return trails the best available figure, while the 3-year and 5-year numbers remain competitive though not the strongest in every comparison. The High Risk tag, along with a portfolio spread across 66 holdings, points to a fund that may suit investors who can handle volatility and want diversified small-cap exposure.

Published on 9 September 2026 at 1:46 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.