Overview
What if you invest in the long term and make returns more than your expectations? This is what Nippon India Small Cap Fund has been doing and helping investors to generate higher returns.
It is a small category equity fund that started in the year 2013. It is a scheme by Nippon India Mutual Fund which is a popular asset management company in India. The fund aims to provide higher returns by investing in small cap companies that can become mid cap tomorrow. Recently, the fund has shown its strength by outperforming its benchmark in mutual funds. By making consistent results, the fund has become the largest small cap fund in its category. It will be interesting to know how the fund achieved this level of growth and consistently delivered great returns.
This article will help you to cover everything about the Nippon small cap fund. In this guide, you will cover its investing strategy, top 5 benefits and why it is a safe investment. Let’s get started.
What is Nippon India Small Cap Fund?
Nippon small cap scheme is an equity fund that focuses on small cap companies. These companies market value is less than Rs. 5000 crores. If you look at the current Nippon India small cap fund NAV (Net Asset Value), it is Rs. 139.47 as of March 2025.
The fund is known for its high growth potential and long-term wealth creation. It primarily invests in small companies to generate capital appreciation. The thing that makes these companies unique is their over-time growth. These companies have the potential to become mid cap tomorrow and provide higher returns.
Over the last few years, the fund has helped thousands of investors grow their money. With an AUM (Asset Under Management) of Rs. 57,010 crores, the fund became the largest small cap fund in its category.
Investment Strategy of Nippon India Small Cap Fund
From the day of its inception, Nippon India small cap fund maintained a strong position in the market. It always aims to give you the best value of your money and this is why it follows a strong investing strategy. To achieve higher growth, the fund prioritizes these 3 things:
Bottom-Up Stock Selection
To identify profitable stocks, the fund uses bottom-up stock selection which helps to analyse every company. This approach combines past performance, growth potential and financial health to identify profitable stocks.
Portfolio Diversification
Long-Term Investment
The fund focuses on holding the investment for more than 5 years. The reason behind this is to reduce the risk of market fluctuations and give enough time to companies to perform well and provide higher returns.
This strategy of investment shows the fund focuses on long-term growth but also managing the risk in an effective way.
Top 5 Benefits of Nippon India Small Cap Fund
High Growth Potential
The fund invests in growing small companies that can become mid cap tomorrow. When these companies grow, their stock prices will increase which will help you to boost your returns in the long term.
Affordable Investment
The fund helps you to start an SIP investment and grow returns over time. The biggest benefit of the plan is that you do not need to invest a large sum of money. You simply invest a fixed amount at set times and it will grow your money over time.
Diversified Portfolio
If you want to leverage sectoral growth, then the fund helps you to achieve it with a diversified portfolio. It spreads your investment into different sectors such as capital goods, financial industry and consumer staples to reduce the risk
Expert Fund Management
Your portfolio is managed by expert fund managers who bring years of experience in mutual funds. They are expert in adjusting portfolios whenever they see any growth opportunities.
Zero Exit load
As an investor, if you do not want to pay a higher exit load on your profit, then the fund helps you with a zero exit load. When you redeem your units after 1 year of investment, you do not need to pay any exit load. If you invest before time, a 1% exit load applies.
Who Manages Nippon India Small Cap Fund?
The person who manages the Nippon India small cap fund is Samir Rachh. He comes with 30 years of valuable experience in equity research and portfolio management. He has been managing the fund since 2017 and currently managing an AUM (Asset Under Management) of Rs. 57,010 crores.
Over the past few years, he helped the fund to reach unexpected growth. The Nippon India small cap fund NAV is the biggest proof of his expertise. He focuses on investing in quality stocks that have long-term growth potential. He selects stocks based on stock performance and growth potential.
He believes in investing long-term to generate the best returns and reduce risk. This investment approach and strong mindset helped Nippon India small cap fund growth and investors to generate the best value of their money.
Why is it Safe to Invest in Nippon India Small Cap Fund?
As an investor, it is important for you to invest where you feel safe for your investment. Here are a few factors that shows why Nippon India small cap fund regular growth is a safe investment:
Strong Fund Performance
If you look at the fund’s past results, you will find that it delivered great returns to investors over time. It has provided an annual growth rate of more than 28% which shows the fund has the potential to generate the same growth in the future.
SIP Investment
The thing that makes the investment a safer choice even as a small cap fund is the SIP option. The fund helps you to invest through a systematic plan which helps you to reduce the volatility risk because you invest money at regular intervals.
Long-Term Investment
Nippon small cap fund follows a long-term wealth-building approach. In simple words, it holds the investment for a long
Final Thoughts
In short, the Nippon India small cap fund provides an excellent way for investors to make high returns. Whether it is diversifying portfolios or investing in small companies, the fund only focuses on making higher profits.
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