Nippon India Small Cap Fund exits IndusInd Bank, Adani Wilmar, 3 other stocks in April

Nippon India Small Cap Fund, the largest small cap fund based on assets managed, made a complete exit from IndusInd Bank, Adani Wilmar and three other stocks in April. Around 2.24 crore shares of Adani Wilmar and around 15 lakh shares of IndusInd Bank were also sold from the portfolio.

The other stocks include Affle (India), Dalmia Bharat, Western Carriers India whose 25.87 lakh, 2.73 lakh, and 6.57 lakh shares, respectively.

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The fund added four new stocks in its portfolio which included Affle 3i, AWL Agri Business, Clean Science and Technology, and Kajaria Ceramics. Around 2.24 crore shares of AWL Agri Business, 25.87 lakh shares of Affle 3i, 22.57 lakh shares of Kajaria Ceramics, and 4.37 lakh of Clean Science and Technology were added to the portfolio.

Exposure in 20 stocks was increased in April which included Ambuja Cements, Asian Paints, Axis Bank, Can Fin Homes, Dr. Reddy’s Laboratories, HUL, Pfizer, Whirlpool of India. It added 32.39 lakh shares of Delhivery India taking the total shares to 53.67 lakh in April against 21.28 lakh in March.

The shares of Dr. Reddy’s Laboratories were increased by 10 lakh in the portfolio, followed by 10 lakh shares of Axis Bank and only 108 shares of Pfizer were added to the portfolio.

Exposure in nine stocks was reduced in the similar time frame. It reduced 12.59 lakh shares of Fusion Finance, followed by 4.91 lakh shares of Paradeep Phosphates. Around 40,000 shares of Gujarat Fluorochemicals were reduced from the portfolio in April. Only 21 shares of Capital Small Finance Bank were reduced from the portfolio in the similar time period.

The largest small cap fund made no change in the exposure of 195 stocks in the similar time period which included some stocks such as Zydus Wellness, Voltas, UTI AMC, RITES, RIL, RBL Bank, Raymond Lifestyles, Jindal Saw, Indigo Paints, Hitachi Energy India, HDFC Bank, and Bajaj Electricals.

The small cap fund had 228 stocks in its portfolio in April against 229 stocks in March. Launched on September 16, 2010, the scheme had an AUM of Rs 58,028.59 crore as on April 30, 2025.

The current investment philosophy of the fund is that the fund attempts to generate relatively better risk adjusted returns by focusing on the smaller capitalization companies. The fund focuses on identifying good growth businesses with reasonable size, quality management and rational valuation.

The investment approach adopts prudent risk management measures like margin of safety and diversification across sectors and stocks with a view to generate relatively better risk adjusted performance over a period of time.

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The scheme is managed by Samir Rachh and is benchmarked against Nifty Smallcap 250 TRI. An exit of 1% will be applicable, if redeemed or switched out on or before completion of one year from the date of allotment of units and the exit load will be nil thereafter.

The scheme is suitable for investors who are seeking long term capital growth and want investment in equity and equity related securities of small cap companies.

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