Nippon India Small Cap Fund: Delivers 26.19% SIP Returns
Did you know that smart investing isn't about predictions but principles that stand the test of time? One great example of this theory is the Nippon India Small Cap Fund, which has given a stellar SIP return of 26.19% in the last 5 years and beaten its benchmark with excellent margins, positioning itself as a strong competitor in the small cap mutual funds category.
Now, you must think, "What makes the Nippon India Mutual Fund stand out amongst its peers?"
The scheme consists of the most promising small cap stocks, which give the fund both quality and growth potential. By keeping such a diverse portfolio, this mutual fund strategizes to outperform its peers and earns huge returns for you.
This analysis focuses on each parameter that has helped a small cap fund beat its competitor, including how much the fund returned over the years, consistency, stock quality, investing styles and the management of this fund.
What is the Nippon India Small Cap Fund?
Nippon Life India Asset Management offers this small cap fund scheme launched in 2010. It invests in promising small cap stocks. Companies with small market capitalization with high growth potential are the prime target. The upper limit of market capitalization for such companies is Rs.5,000 crore.
Let's know about some key features of Nippon India Mutual Fund.
Fund Type and Suitability
There are two types of Small Cap Mutual Funds. One is open-ended funds and another is growth and dividend options. Open ended funds allow you to buy or sell funds at any time you want. This way, you can make huge profits by selling them at the right time.
In growth and dividend options, investors can reinvest their profits. This also allows you to receive payouts if you want to.
For suitability, Mutual Funds like small cap funds are ideal for long-term investment. To seek high growth, you will have to be tolerant for risks. The ideal duration for long-term investment in such schemes is 5 years or more. Nippon India Small Cap Fund has provided returns of more than 26% over 5 years. Hence, you can invest in the scheme for the long term and ensure greater returns.
Performance Review of Nippon India Small Cap Fund So Far
It is important to assess the portfolio’s performance and to compare it with others.
This way, it becomes easy for you to analyze Nippon India Small Cap Mutual Fund NAV and make informed decisions. Under this section, you will get to know about the past performance of the scheme.
SIP Returns
The scheme has generated way higher SIP returns than the category average. As you can see in the graph, the scheme has outperformed it. It has also generated SIP returns greater than NIFTY Small Cap 250 TRI.
Returns generated in a 5-year duration are as high as 26.19%.
You can also earn that much return by investing in long-term schemes. If you are not that much patient then you can go for short-term plans as well.
As the Nippon India Small Cap Fund’s growth compare suggests, the returns in 3-years duration are also very high.
Rolling Returns & Consistency
As you can see, the scheme has outperformed both of its peers. It has generated 27.8% returns in a 3-year investment plan with 80.69 consistency. In the 5-year investment plan, it has made returns as high as 22.83% that too with 75.17 consistency.
This should be enough for you to trust the mutual funds scheme. If not, then the data discussed further will convince you for sure.
Stock Quality
As you know, stock quality plays a critical role in any fund's long-term success. Nippon India Mutual Fund's holdings include small companies that have robust fundamentals.
For example, top-performing holdings like Tube Investments of India and Apar Industries. These two holdings have been showing consistent double-digit earnings.
This shows the scheme's potential for high earnings growth. Thanks to investors like you for driving such growth.
According to the data, the P/E ratio and earnings growth for Nippon India Small Cap Fund are 8.11 and 33.52 respectively. Both of these are greater than the category average.
Did you notice sales growth and cash flow growth of the small cap fund scheme?
Both of these are higher than the category average. Such a growth trajectory shows the scheme's potential to earn huge profits.
This much data must be convincing for you to make an informed decision. So, be a lucky earner by investing in Nippon India Mutual Fund.
Why is Nippon India Small Cap Fund a Successful Small Cap Scheme?
Several reasons explain the success of this small cap mutual fund scheme. These are effective management, strong performance, and a tactical investment approach. Below is a brief explanation of some of the reasons:
Effective Fund Management
Samir Rachh is currently working as the fund manager in the Small Cap Mutual Funds scheme. He is quite skilled and has 25 years of experience in the field. Samir has been managing the fund scheme since January 2017. He has worked with firms like Hinduja Finance, Emkay Research, and Anvicon Research.
The track record of the small cap fund under Rachh's tenure is excellent. Under his management, the fund's AUM has grown from around Rs.3,000 crores in 2017 to over Rs.50,000 crores in March 2025. Such a growth is very rare. He has navigated market volatility with great efficiency to make it the best small cap mutual fund scheme. Even during the period of the global pandemic, his team managed to lower the risks. Thanks to Mr. Rachh, you can invest in Nippon Small Cap Mutual Fund and earn huge returns.
Smart Investments, Bigger Returns
Investing Styles and Strategy
The fund adopts an approach that is a combination of buy and hold and active management.
Now, you must be wondering how Nippon India Small Cap Portfolio earns money.
The investment philosophy focuses on the identification of potential small cap companies. The scheme holds such companies while they scale up. This ensures the most returns out of them. The fund also adjusts the portfolio to mitigate potential risks and identify opportunities. Thus, you also don't need to worry about the risk factors associated with Nippon India Small Cap Fund Regular Growth.
The fund uses a unique strategy called the Growth at A Reasonable Price (GARP) strategy. This strategy targets small cap companies with high growth potential while avoiding overpaying. This helps the fund maintain a diverse pool of stocks that consists of growth and value stocks. This also makes it the best small cap mutual fund for you in the market.
Portfolio Diversification
Currently, the fund holds more than 230 stocks which reduces single-stock risks. In such a diverse pool, the single stock holding does not go beyond 2%. So, you can invest in several small cap stocks at once and ensure returns for sure.
The turnover of the small cap mutual fund has been around 22% for most of the time. It is the result of a balanced conviction for the long term along with strategic adjustments. You can also invest in the scheme for the long term to make sure that you get the best returns.
The fund has been shifting its weight and adapting to different market conditions. Nippon India's small cap fund growth does not shift from its core philosophy. Such an effective strategy is suitable for patient and risk-tolerant investors. You will have to invest for at least 7 years to earn great profits.
Consistent High Returns
The small cap fund has been ensuring strong returns. Nippon India Mutual Fund has outperformed other small cap funds like SBI Small Cap Fund. It is also better than the HDFC Small Cap Fund in certain periods.
This is because the scheme has only invested in high-growth small cap stocks. You can also earn great returns by investing in small cap mutual funds.
These stocks promise higher capital appreciation in long-term investment. Even in the years of high market volatility, this scheme has provided good returns.
Now, you must be thinking about how Nippon India Small Mutual Fund finds promising stocks.
Well, this is due to their research capacity, so let's learn about it.
Research Based Stock Selection
If you want to earn huge returns on your investments, you can Start SIP in this Nippon India Small Cap Fund but before that, you will have to identify promising stocks. The fund has selected such promising small cap stocks based on in-depth market research.
The management team led by Samir Rachh conducts extensive research and fundamental analysis. This helps them identify small cap stocks that show strong growth potential.
During bullish market cycles, small cap stocks generate the most returns. Mutual funds gain more returns when the market shows an upward growth trend. Nippon India Mutual Fund Portfolio has made most of its returns during the bullish market cycles.
Conclusion
In short, as a wise investor you will always analyze different schemes before making a decision. But still, if you want to earn a good amount of money then SIP is the best for you. Hope, you have found relevant data related to the small cap fund scheme. It is now up to you to choose the best scheme and start earning. So far, Nippon India Mutual Fund has not disappointed its valuable investors. So, what are you waiting for? Start investing and create wealth before it's too late.
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