The small-cap space in the market often generates a lot of heated discussion due to the high returns it offers as well as the high risk it entails. Small-cap funds are usually more volatile than large-cap funds and, therefore, the latter are recommended for stability in performance. Nippon India Small Cap Fund is remarkable for the returns it has provided over the years. Let’s have a look.
NAV, fund size, expense ratio
This fund was launched in September 2010. Its NAV (Net Asset Value) as on August 23, 2024, was Rs 199.38. Its fund size is Rs 60,372.55 crore and expense ratio is 0.63% against a category average of 0.61%. It is categorised as Very High in the risk-o-meter.
Lump sum returns
If someone had invested Rs 10,000 6 months ago, Nippon India Small Cap Fund would have generated a value of Rs 12,458. The same amount invested 1 year ago would have generated Rs 15,247; 2 years ago, Rs 20,848; 3 years ago, Rs 24,985; 5 years ago, Rs 54,719; 10 years ago, Rs 87,824. And if someone invested Rs 10,000 on September 19, 2010, the fund would have turned it into Rs 199,384 – nearly 20 times in a little less than 14 years.
SIP returns
If one had invested Rs 1,000 a month in this fund through the SIP mode, it would have generated the following amounts – Rs 15,493 in 1 year; 38,519 in 2 years; Rs 65,579 in 3 years; Rs 171,985 in 5 years and Rs 545,833 in 10 years.
Favourite sectors
According to Value Research the sectors where this fund has invested significantly are industrials (26.29% of the money); materials (14.79%); financials (14.04%); consumer discretionary (13.71%); technology (8.62%); consumer staples (7.59%) and healthcare (7.15%).
Top stocks
The stocks where it has invested heavily include HDFC Bank, Kirloskar Brothers, Tube Investments, Bharat Heavy Electricals, Karur Vysya Bank, Tejas Networks, Emami, SBI, Dixon Technologies, Pfizer, Asian Paints, L&T, Jyothy Labs.
Volatility
Nippon India Small Cap Fund has a Beta of 0.79. It indicates that the fund is 21% less volatile than the market. Beta is a metric that measures how sensitive a fund is to market movements.
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The small cap space has been in lot of discussion in the past few years. This fund has performed consistently in that heated space. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
