Hi wealthgainer.in Readers, today we are talking about Nippon India Small Cap Fund. Small-cap funds are an excellent investment option for those seeking high growth potential over a long period. The Nippon India Small Cap Fund (formerly Reliance Small Cap Fund) has consistently proven itself as a leading player in this segment. In this article, we’ll provide an in-depth analysis of the Nippon Small Cap Fund, its performance, benefits, and why it might be a suitable choice for your investment portfolio.
This article will also incorporate insights on the Nippon India Small Cap Fund Direct Growth, Nippon Small Cap Fund Regular Growth, and NAV (Net Asset Value) details to offer a comprehensive view of how this fund stands out in the market.
1. Introduction to Nippon India Small Cap Fund
The Nippon India Small Cap Fund, previously known as the Reliance Small Cap Fund, is an open-ended equity scheme predominantly investing in small-cap stocks. It seeks to provide long-term capital appreciation by investing in companies that rank below the top 250 by market capitalization.
Key Fund Details:
- Fund Type: Open-ended equity scheme focused on small-cap stocks.
- Launch Date: September 16, 2010.
- Fund Manager: Mr. Samir Rachh
- Investment Objective: Long-term capital appreciation by investing in predominantly in equity and equity related instruments of small cap companies and generate consistent returns by investing in debt and money market securities.
2. Growth Plans: Direct vs. Regular Growth
The Nippon India Small Cap Fund Direct Growth plan is designed for investors who manage their investments without intermediaries. This plan tends to have a lower expense ratio, which leads to better returns over the long term.
On the other hand, the Nippon India Small Cap Fund Regular Growth plan involves intermediaries, resulting in a slightly higher expense ratio. Both options aim for growth, but direct growth plans often yield higher returns due to lower fees.
Here’s a simple comparison to illustrate this:
| Fund Type Expense | Expense Ratio | Returns Since Inception |
| Regular Plan | Higher | 23% |
| Direct-Growth Plan | Lower | 24.2% |
As you can see, even a small difference in the expense ratio can significantly impact your returns over the long term.
NAV Comparison (as of October 4, 2024):
- Nippon India Small Cap Fund Direct Growth NAV: ₹198.5774
- Nippon Small Cap Fund Regular Growth NAV: ₹178.2702
Both options provide opportunities for long-term wealth creation, but it’s important to choose based on your level of comfort in managing investments directly or through intermediaries.
3. Fund Performance Of Nippon India Small Cap Fund: Small Cap Power
The performance of the Nippon India Small Cap Fund has been impressive, particularly for long-term investors. Here’s a snapshot of its returns:
| Time Period | Nippon Small Cap Fund CAGR | Nifty Smallcap 250 Index Fund |
| 1 Year | 48.62% | 53.26% |
| 3 Years | 32.27% | 27.14% |
| 5 Years | 38.69% | 21.56% |
| Since Inception | 23.00% | 14.71% |
The Nippon India Small Cap Fund has consistently outperformed its benchmark, the Nifty Smallcap 250 Index Fund, making it an excellent option for those seeking high returns in the small-cap category.
4. Why Invest in the Nippon Small Cap Fund?
High Growth Potential:
The Nippon Small Cap Fund focuses on small-cap companies, which often operate in niche markets and have greater potential for growth compared to large-cap or mid-cap companies. These companies can deliver substantial returns if chosen wisely, as they typically exhibit exponential growth as they scale.
If you’ve read “One Up on Wall Street” by Peter Lynch, you’ll recall how Lynch famously championed small companies that were flying under the radar. Many of these companies went on to become “ten-baggers” (growing tenfold).
Diversification:
The fund diversifies its investments across multiple sectors, including industrials, technology, healthcare, and financials, mitigating risks associated with investing in a single industry. This makes the Nippon India Small Cap Fund Direct Plan Growth Plan ideal for long-term investors who want to ride the growth of different sectors.
Top Holdings (Percentage of Assets):
- KPIT Technologies (5%)
- Deepak Nitrite (4%)
- Bajaj Electricals (3.5%)
These companies spread across technology, chemicals, and consumer goods—providing the fund with a diversified base to capture growth in multiple sectors.
Long-Term Wealth Creation:
The Nippon India Small Cap Fund Growth has been structured for long-term capital appreciation. Historically, small-cap funds like this have shown strong performance for investors who can remain invested for at least 5-7 years.
5. Fund Manager and Strategy
The Nippon India Small Cap Mutual Fund is managed by Mr. Samir Rachh, who brings over two decades of experience in fund management. The fund follows a bottom-up approach to stock picking, focusing on small-cap companies with solid fundamentals, growth potential, and reasonable valuations.
6. Minimum Investment and Subscription Limits
- Minimum Investment: ₹5,000 and multiples of ₹1 thereafter.
- Subscription Limits: Since July 7, 2023, Nippon India Mutual Fund (NIMF Small Cap Fund) has restricted further investments to ensure that the existing investors do not face dilution of returns. This is a common practice in small-cap funds to maintain the integrity and growth of the fund.
7. SIP Calculator: Predicting Your Future Wealth
One of the best ways to invest in a small-cap fund is through a Systematic Investment Plan (SIP). Let’s assume you invest ₹10,000 per month in the Nippon India Small Cap Fund, aiming for a return of 15% per year over 10 years.
Using a Nippon India Mutual Fund SIP calculator, you can estimate your future corpus:
| Monthly SIP | Duration | Expected Rate of Return | Total Corpus |
| ₹10,000 | 10 years | 15% | ₹27.2 lakh |
8. Expense Ratio: Keeping Costs Low
The expense ratio is an important factor in any fund’s long-term success. For the Nippon India Small Cap Fund, the Direct-Growth Plan offers a lower expense ratio, leading to better returns for investors over time. Even a small difference in the expense ratio can have a huge impact on long-term gains.
As the saying goes, “In investing, the amount you pay for something is just as important as the return it generates.” This is a key lesson from John Bogle’s philosophy in “The Little Book of Common Sense Investing.“
9. Comparison with Other Small Cap Funds
The Nippon Small Cap Fund is a leader in its category, consistently outperforming its peers. If we compare it to other small-cap funds like Reliance Small Cap Fund (its previous name), we see that it continues to dominate the small-cap market with solid returns and a strong portfolio.
The Nippon India Small Cap Fund Price (or NAV) reflects its growth trajectory, offering excellent returns for investors who have stayed the course.
10. NAV and Pricing Information
Investors often look at the Nippon Small Cap Fund NAV to understand the price of entry. As of October 4, 2024, the Nippon India Small Cap Fund NAV for the Direct Growth option stands at ₹198.5774, while the Regular Growth option is priced at ₹178.2702.
NAV of Nippon India Small Cap Fund is updated daily and can be tracked via the official website or mutual fund tracking platforms.
11. Conclusion: Is the Nippon India Small Cap Fund Right for You?
If you’re a long-term investor looking for high growth potential and can tolerate short-term market volatility, the Nippon India Small Cap Fund could be a valuable addition to your portfolio. With a strong track record of outperforming its benchmark and offering diversified exposure to small-cap companies, this fund is well-suited for growth-oriented investors.
Remember, as Warren Buffett wisely said, “The stock market is a device for transferring money from the impatient to the patient.” Invest for the long haul, and let compounding do its magic.
Before investing, ensure you understand your risk tolerance and consult with a financial advisor to make the best decision for your investment portfolio.
By choosing the Nippon India Small Cap Fund, you could be setting yourself up for significant long-term gains. Keep an eye on the NAV of Nippon India Small Cap Fund, monitor the market, and stay invested for optimal returns.
FAQs on Nippon India Small Cap Fund
What is the Nippon India Small Cap Fund Direct Plan Growth?
The Nippon India Small Cap Fund Direct Plan Growth is an investment plan where investors can manage their investments directly without intermediaries, allowing for lower expense ratios and potentially higher returns.
How is the Nippon Small Cap Mutual Fund different from other small-cap funds?
The Nippon Small Cap Mutual Fund is known for its focused investment strategy in small-cap stocks, aiming for long-term capital appreciation. It has a strong performance record compared to its peers, making it one of the top choices for small-cap investors.
What does the Nippon India Small Cap Fund Portfolio include?
The Nippon India Small Cap Fund Portfolio includes investments in diverse sectors such as industrials, technology, and healthcare. It targets companies with high growth potential that are typically under represented in large-cap portfolios.
What is the Nippon India Small Cap Fund Direct Plan?
The Nippon India Small Cap Fund Direct Plan is an option for investors who want to invest directly in the fund without any distributor or intermediary, leading to a lower expense ratio.
What are the benefits of investing in the Nippon India Small Cap Fund Direct Growth?
Investing in the Nippon India Small Cap Fund Direct Growth allows for lower costs and higher potential returns due to the absence of intermediary fees. It’s an excellent option for long-term investors who are comfortable managing their investments directly.
How has the Nippon India Small Cap Fund Performance been over the years?
The Nippon India Small Cap Fund has delivered strong performance over the years, particularly in the long-term. Investors who stayed invested for 5-10 years have witnessed significant capital appreciation.
What is the Nippon Small Cap Fund Direct Growth NAV?
The Nippon Small Cap Fund Direct Growth NAV represents the current net asset value (NAV) of the fund. It is updated daily and can be tracked through the fund’s website or mutual fund platforms.
What is the Nippon India Small Cap Fund Review?
The Nippon India Small Cap Fund Review is generally positive, with many investors praising its strong performance in the small-cap space. Financial advisors often recommend it for those with a long-term investment horizon.
What are the returns of the Nippon India Small Cap Fund Growth Plan?
The Nippon India Small Cap Fund Growth Plan has consistently outperformed its benchmark over the long term. Returns vary depending on market conditions but are generally strong for those who invest for 5-7 years or more.
What is the minimum SIP amount for Nippon India Small Cap Fund Investment?
The Nippon India Small Cap Fund Minimum SIP Amount is ₹500. This low entry point makes it accessible for a wide range of investors who want to take advantage of small-cap growth.
What is the Nippon India Small Cap Fund Direct Growth Expense Ratio?
The Nippon India Small Cap Fund Direct Growth Expense Ratio is relatively low compared to regular plans, making it more cost-effective for investors. It’s important to compare the expense ratios before choosing the right plan for you.
How does the Nippon India Nifty Smallcap 250 Index Fund Direct Growth compare to other funds?
The Nippon India Nifty Smallcap 250 Index Fund Direct Growth is a passive fund that tracks the performance of the Nifty Smallcap 250 Index, offering investors an opportunity to invest in a diversified basket of small-cap stocks.
Can I invest a lump sum in the Nippon India Small Cap Fund?
Yes, the Nippon India Small Cap Fund Lumpsum Investment option is available for investors who prefer to invest a larger amount at once. However, given the volatility of small-cap funds, a systematic investment plan (SIP) may be a safer approach for risk-precise investors.
What are the long-term returns of the Nippon India Small Cap Fund?
The Nippon India Small Cap Fund Last 10 Years Return has been impressive, often outperforming its benchmark. For investors who remain invested for a long duration, the fund has provided significant capital appreciation.
Who manages the Nippon India Small Cap Fund?
The Nippon India Small Cap Fund Manager, Mr. Samir Rachh, has extensive experience in fund management, focusing on identifying small-cap companies with high growth potential.
What is the Nippon Small Cap Direct Growth Expense Ratio?
The Nippon Small Cap Direct Growth Expense Ratio is normally lower than the regular growth plan, making it a more cost-effective option for direct investors.
What is the difference between Nippon Small Cap Fund Direct Growth and Nippon Small Cap Regular Growth?
The primary difference between Nippon Small Cap Fund Direct Growth and Nippon Small Cap Regular Growth is the expense ratio. The direct growth plan has a lower expense ratio since there are no intermediary commissions, leading to potentially higher returns over time.
How can I check the Nippon India Small Cap Fund Returns?
You can check the Nippon India Small Cap Fund Returns by visiting the official website or any mutual fund tracking platform. The returns vary based on market conditions, but it is known for its strong performance over the long term.
What is the Nippon Small Cap Fund Portfolio like?
The Nippon Small Cap Fund Portfolio is invest in multiple sectors, focusing on small-cap companies with strong growth potential.
Disclaimer: Mutual fund investments are subject to market risks. Past performance is not indicative of future returns. Please read all scheme-related documents carefully before investing.