Nippon India Small Cap mutual fund review: Solid long-term track record

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

BASIC FACTS
DATE OF LAUNCH
16 SEPTEMBER 2010
CATEGORY
EQUITY

TYPE
SMALL CAP
AUM*
Rs.18,358 Crore
BENCHMARK
NIFTY SMALLCAP 250
TOTAL RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.78.73
IDCW
Rs.53.91
MINIMUM INVESTMENT
Rs.5,000
MINIMUM SIP AMOUNT
Rs.1,000
EXPENSE RATIO*** (%)
1.82
EXIT LOAD
1% for redemption
within 30 days

**AS ON 5 JULY 2022
*AS ON 30 JUNE 2022
***AS ON 31 MAY 2022

FUND MANAGER
SAMIR RACHH
TENURE: 5 YEARS, 5 MONTHS

Recent portfolio changes
New Entrants: Apollo Tyres, Campus Activewear, Castrol India, Coal India, eMudhra, Interglobe Aviation, LIC, Nazara Tech, Paradeep Phosphates, Tech Mahindra, The India Cements, Varroc Engineering, Venus Pipes & Tubes, Astec Lifesciences, RHI Magnesita India.
Complete Exits: Adani Ports and Special Economic Zone, Bharti Airtel, Zensar Technologies, Biocon, Nazara Tech, Tech Mahindra.

Should you buy?
With a swelling asset base, the portfolio size of this small -cap offering has now expanded to a hefty 150 stocks. This extent of diversification has led to a diluted portfolio with small positions even in top bets and a very long tail. The portfolio expansion is to manage inherent risk in this space, but brings it closer to an index offering. Beyond core small-cap exposure, the fund maintains presence in mid-caps with modest allocation to large-caps for liquidity needs. Even with bloated portfolio, the fund has put in a good show in recent years and enjoys a solid longer term track record. Yet, investors should watch for performance dilution in the face of continued inflows.

(Source: Value Research)