How Nippon India Small Cap Fund Empower Financial Growth?

Overview of Nippon India Small Cap Fund

In recent years, the small cap funds have shown dramatic results. But one scheme that has the biggest contribution is Nippon India Small Cap Fund which empowering investors to make high returns.

It is a small-category mutual fund that was started by Nippon India Mutual Fund in 2013. The fund focuses on investing in equity and equity-related instruments in small companies. From the day of its inception, you can see a positive growth in its CAGR which is 20.29% as of February 2025. The fund aims to provide higher returns to investors by investing in small companies that have the potential to become mid cap tomorrow.

The NAV (Net Asset Value) plays an important role in the fund's growth and you can also see a significant growth in Nippon India small cap fund NAV which is Rs. 144 as of February 2025. Over time, the fund has won the trust of so many investors by providing consistent results. If you are planning to invest, then understanding this small cap fund will be beneficial for you.

In this article, you will learn about this growing Nippon small cap fund. This guide will help you to cover its investing strategy, expert fund management and why should you invest in it. So keep reading to not miss anything.

What is the Investment Strategy of Nippon India Small Cap Fund?

The Nippon India small cap growth fund has the record to outperform its benchmark in the long term. Its investing strategy is the biggest reason behind this growth. It focuses on investing in small companies that have the potential to become mid cap tomorrow. The top holdings of the fund are Tripaty Repo, HDFC Bank Limited, SBI etc.

The fund focuses on identifying these companies to invest in for higher growth in mutual funds. It uses bottom-up stock selection where a team of experts analyse every small company. It helps the fund to choose the right stocks that have higher growth potential.

To minimise the risk, the Nippon India small cap growth fund also diversifies its portfolio into different sectors. Investors get the biggest benefit from this approach. Because their money spreads into different sectors, even if one sector does not perform well, it will not affect the total performance.

This strategy of investing helped the fund to provide better results in the long term. After understanding its strategy, you can say the fund is highly focused on making returns while managing the risk factor.

Key Benefits of Nippon India Small Cap Fund?

There is a large number of investors who invest in Nippon India small cap fund because of the benefits it provides:

High Growth Potential

The fund invests in emerging companies that have the potential to become large cap. By investing in these growing companies, the fund gives you an opportunity to leverage small companies growth.

Well Diversified Portfolio

Nippon small cap fund uses a strategy of diversification in mutual funds to maintain performance. It spreads your investment into different growing sectors to help you leverage sectoral benefits and reduce the risk.

Better Compounding Returns

As an investor, if you are planning to invest for the next 5-7 years then fund helps to make great returns. It provides systematic investment plan which helps you to make higher returns over time by leveraging compounding.

Who is the Fund Manager of Nippon Small Cap Fund?

The biggest reason behind Nippon India small cap fund regular growth is Samir Rachh. He has been managing the fund since 2017 and has 30 years of valuable experience in equity research. He has been managing the fund for the last 8 years and currently managing an AUM (Asset Under Management) of Rs. 57,009 crores. He also has a strong educational background and holds a Bachelor's Degree in Commerce.

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. Based on market conditions and stock performance, he selects profitable stocks for great returns.

He also focuses on adapting new opportunities to make massive profits for investors. Over the last few years, his strategies provided great value to investors money. This is the reason the fund gained the trust of so many investors like you.

Why is Nippon India Small Cap Fund Good for SIP?

Investing through SIP (Systematic Investment Plan) is a great choice for every investor. But do you know why it is good with Nippon small cap fund? Here's why:

Strong Past Performance

The fund has a track record of growing investor's money over time. Because it has the potential to provide future growth, starting a systematic investment will help you to make better returns.

Long Term Investment

The best way to make higher returns and leverage compounding is by investing in the long term. Because the fund invests in the long-term for higher returns, starting an SIP will be beneficial to make great returns.

Small Cap Stock Growth Potential

As you know, small cap company stocks have a higher growth potential which can be helpful to grow systematic plan returns when these stocks perform well over time.

Who Should Invest in Nippon Small Cap Fund?

The Nippon India small cap fund regular growth invest in growing small companies to make higher returns but this is what causes it to face higher volatility. This is why the fund is best suitable for investors who are:

High-Risk Takers

As you know, the fund invests in small companies that are highly volatile compared to mid and large cap. Sometimes this causes short-term losses, so if you planning to invest in the fund, then make sure you have a high risk tolerance.

Looking for Better Diversification

If you want your investment to get diversified perfectly into different sectors so you can make better returns, then investing in the fund might be a great choice. It spreads your investment into quality stocks to reduce risk and make better returns.

 Long Term Investors

If you are planning to invest in the fund for the next 5-7 years, then investing in the fund will be beneficial. Because the fund has to face higher volatility, it focuses on investing in the long term so it can manage risk and achieve high returns.

Conclusion

In short, the Nippon India small cap fund is a great solution for aggressive investors who want to make higher returns. Its strong investing strategy and risk management make it stand out in the small cap funds. If you are looking to invest for 5-7 years and also take enough risk, then Nippon small cap fund is a great choice.

It also provides an easy way to grow investor’s money with an SIP. You can start your investing journey by investing a fixed amount at set times and the systematic plan will do all the work for you. It not only grows your money over time but also helps you to manage risk. If investing a large seems hard to you, then this plan is a perfect choice for you.