Nippon Small Cap Fund

Fund Details

Parameters	Details
Fund Size Month End (July 2024)	60,372.55 Crs
Scheme Type	An open-ended equity scheme predominantly investing in small cap stocks
Benchmark	NIFTY Smallcap 250 TRI
Fund Managers	Samir Rachh
Exit load	1% if redeemed or switched out on or before completion of 1 year from the date of allotment of units. Nil thereafter
Expense Ratio	0.63% (Direct Funds) | 1.42 % (Regular Funds)
Tax implication	Returns are taxed at 20% STCG redeemed within 1 year After 1 year LTCG of 12.5% will be applicable if return
Standard Deviation	14.63
Beta	0.75
Sharpe ratio	1.57
Portfolio turnover	0.25

Invest philosophy of Nippon Small Cap Fund

The fund aims to achieve superior risk-adjusted returns by concentrating on smaller-capitalization companies. For this fund, small-cap stocks are defined as those with market capitalizations that fall outside the top 250 companies. These small-cap firms are seen as potential mid-cap companies of the future, offering a unique blend of high growth potential and relatively lower valuations.

The fund’s strategy is to identify businesses with strong growth prospects, a reasonable size, quality management, and fair valuations. This investment approach incorporates prudent risk management practices, such as maintaining a margin of safety and diversifying across various sectors and stocks, with the goal of delivering better risk-adjusted performance over time.

Fund Objective

The scheme’s main investment objective is to achieve long-term capital growth by primarily investing in equity and equity-related instruments of small-cap companies. Additionally, it seeks to provide consistent returns through debt and money market securities investments.

Investment Strategy

To surpass market performance, invest in small caps today that have the potential to grow into tomorrow’s midcaps and eventually become large caps.

The Nippon Small Cap Fund is designed for investors seeking relatively higher risk and potentially higher returns. The fund primarily allocates its investments to small-cap stocks to maximize return potential, while also making tactical allocations to other market capitalizations to help manage risk.

Right Risk:

The fund focuses on selecting high-quality companies with scalable businesses and strong management teams that are often overlooked for reasons unrelated to their fundamentals. This approach, termed “Right Risk,” ensures that quality is never compromised.

Investment Approach:

• Bottom-Up Investing: The strategy involves identifying potential winners across various sectors and themes, focusing on the intrinsic strengths of individual companies.
• Sustained Alpha:The fund makes differentiated investments in unique, high-conviction ideas, leveraging its internal research capabilities to achieve what it calls “Exclusive Alpha.” It also seizes opportunities arising from new or changing market trends.

Risk Management:

1. The fund prioritizes investments with a high margin of safety, aiming to protect against downside risks.
2. It maintains a well-diversified portfolio, spreading investments across a wide range of stocks and sectors.
3. Exposure to any single stock is limited to no more than 5% of the portfolio.
4. Investments are held for longer periods to reduce the impact of market volatility

Scheme performance summary

Particulars	1-year CAGR	3-year CAGR	5-year CAGR	Since Inception CAGR
Nippon India Small Cap Fund	60.44	35.38	31.13	22.23
B:Nifty Smallcap 250 TRI	68.94	30.66	25.49	13.91

Fund Managers of Nippon India Small Cap Fund

Samir Rachh

Samir Rachh only manages one opened scheme of Nippon India Mutual Funds

Tejas Sheth

Samir Rachh only manages one opened scheme of Nippon India Mutual Funds namely:

• Nippon India Small Cap Fund
• Nippon India Multi-Asset Fund

Stock Constituents of Nippon Small Cap Fund | Stocks in the Portfolio

Nippon Smallcap Fund Data