Nippon India Small Cap Fund Delivers Over 20% Annualized Returns, SIP Grows Rs 10,000 to Rs 1.45 Crore in 15 Years
Nippon India Small Cap Fund has provided an annualized return of about 21% on lump sum investments and over 23% CAGR on SIPs over 15 years. A Rs 10,000 monthly SIP since inception would have grown to Rs 1.45 crore. The fund is the largest in its category with Rs 66,136 crore AUM, a 5-star rating, and focuses on high-potential small-cap companies.
Launched on September 16, 2010, the Nippon India Small Cap Fund has delivered stellar long-term performance in the small-cap equity segment, with an annualized lump sum return of approximately 20.5% and an exceptional SIP return of 22.84% over 15 years. For example, a one-time investment of Rs 1 lakh at launch is now worth Rs 16.58 lakh, while a monthly SIP of Rs 10,000 plus Rs 1 lakh upfront totaling Rs 19 lakh has appreciated to Rs 1.44 crore, demonstrating strong compounding benefits. As of September 30, 2025, the fund manages Rs 66,136 crore in Assets Under Management, ranking as the largest in the fund house’s portfolio, signaling robust investor confidence. The fund holds a 5-star rating from Value Research and maintains a competitive expense ratio of 1.39%. Its investment strategy targets small-cap companies with high growth potential that could evolve into mid-cap businesses, capturing growth opportunities at relatively attractive valuations. The portfolio is diversified across sectors including consumer durables, industrial products, auto components, banks, pharmaceuticals, and chemicals. Minimum investments start at Rs 5,000 lump sum or Rs 100 monthly SIP, making it accessible to varied investors. Despite its strong long-term track record, the fund carries a very high risk profile typical of small-cap equity funds, and investors are advised to assess their risk tolerance and consult financial advisors before investing.
