Nippon India Small Cap fund: The returns given by mutual fund in the recent past is one of the key factors that investors assess to evaluate the performance of fund scheme.
Other factors that help investors judge the scheme’s performance include, but not confined to, reputation of fund house, performance of benchmark index, category in which the fund falls under i.e., small cap or large cap, and the overall macro-economic condition, among others.
Here, we give a lowdown on the performance of small cap funds and particularly one of the top-performing funds i.e., Nippon India Small Cap Fund.
There are 24 small cap schemes and the net inflow during the month of August was ₹1,259.98 crore. The net assets under management at the end of August 31 were ₹1.20 lakh crore, according to the latest AMFI (Association of mutual funds in India) data.
Recently, MintGenie reported that the past one-year returns of small cap funds delivered more returns than their counterparts in large and mid-cap funds.
Details on Nippon India Small Cap fund
The fund was launched on Sept 16, 2010. The fund manager for the scheme is Samir Rachh. The new investors can invest into the scheme by contributing a minimum of ₹5,000.
The top ten holdings as on Aug 31, 2022 include Tube Investments of India, CreditAccess Grameen, Poonawalla Fincorp, KPIT Technologies, HDFC Bank, Bajaj Electricals,, Fine Organic Industries, Tejas Networks and NIIT.
The industry wise allocation of the scheme include industrial products (8.77%), banks (6.94%), auto components (6.87%), chemicals and petrochemicals (6.49%), consumer durables (5.21%), construction (4.7%), pharma & biotechhnology (4.51%)and finance (4.36%).
This is one of the small cap fund schemes that delivered exceptionally high returns in the past three years, posting a high return of 33.46 percent. In other words, if someone had invested ₹one lakh in the scheme on September 26, 2019, it would have grown to ₹2,37,713.
| Years | Returns (%) | Benchmark Index return (%) |
| 1 | 9.72 | -2.22 |
| 3 | 33.46 | 24.83 |
| 5 | 19.02 | 9.20 |
(Returns are direct as on Sep 26; Source: AMFI)
The past five-year returns of the scheme (as shown in the table) were 19.02 percent. This means if someone had invested ₹one lakh in the scheme, it would have grown to ₹2,38,836. At the same time, the mutual fund scheme gave a return of 9.72 in past one year while the benchmark index return was in negative territory.
The benchmark index for this scheme is Nifty Smallcap 250 TRI which gave a return of 24.83 percent. The daily assets under management (AUM) of this scheme was ₹21,586 crore.
