Nippon India Small Cap Fund vs HDFC Small Cap Fund
What ₹10 lakh grew to in each, with returns, costs, risk, holdings, overlap and Foliyo’s research view.
- Nippon India Small Cap Fund
- Strong
- HDFC Small Cap Fund
- Steady
- Portfolio overlap
- 11%
- Returns to
- 30 October 2026
Nippon India Small Cap FundHDFC Small Cap Fund
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Nippon India Small Cap Fund (Strong, ₹80,906 Cr) and HDFC Small Cap Fund (Steady, ₹40,801 Cr) are two of the largest small cap funds. On Foliyo’s research Nippon India Small Cap Fund ranks higher (11 of 33, Strong) than HDFC Small Cap Fund (20, Steady). ₹10 lakh put in both on 1 January 2013 grew to ₹1.75 crore and ₹93.42 lakh respectively by 30 October 2026.
Compare mutual funds Pick any two funds, in any plan, and see them side by side.
Nippon India Small Cap Fund vs HDFC Small Cap Fund: side by side
| Direct Growth plans | Nippon India Small Cap Fund | HDFC Small Cap Fund |
|---|---|---|
| Foliyo label | Strong #11 of 33 | Steady #20 of 33 |
| ₹10 lakh after 1 year | ₹9.98 lakh | ₹9.02 lakh |
| ₹10 lakh after 3 years | ₹14.42 lakh | ₹12.97 lakh |
| ₹10 lakh after 5 years | ₹21.06 lakh | ₹17.78 lakh |
| ₹10 lakh after 10 years | ₹60.73 lakh | ₹47.79 lakh |
| 1-year return | −0.2% | −9.8% |
| 3-year return (a year) | 13.0% | 8.9% |
| 5-year return (a year) | 17.1% | 13.1% |
| 10-year return (a year) | 19.3% | 16.4% |
| Since launch (a year) | 23.0% | 17.5% |
| Fund size (AUM) | ₹80,906 Cr | ₹40,801 Cr |
| Expense ratio (Direct) | 0.69% | 0.79% |
| Number of holdings | 260 | 87 |
| Equity / debt / cash | 97% / — / 3% | 90% / — / 10% |
| Large / mid / small cap | 14% / 13% / 69% | 6% / 9% / 74% |
| Price to earnings | 27.0 | 20.3 |
| Price to book | 3.6 | 2.9 |
| Sharpe ratio (3Y) | 0.49 | 0.28 |
| Sortino ratio (3Y) | 0.79 | 0.42 |
| Standard deviation (3Y) | 19.3% | 17.6% |
| Maximum drawdown (3Y) | −23.2% | −19.5% |
| Alpha (3Y) | 1.40% | −1.16% |
| Beta (3Y) | 0.86 | 0.78 |
| Downside capture (3Y) | 79 | 77 |
| Lead fund manager | Samir Rachh (since January 2017) | Chirag Setalvad (since June 2014) |
| Launch date | 1 January 2013 | 1 January 2013 |
| Benchmark | Nifty Smallcap 250 TR INR | BSE 250 SmallCap TR INR |
| Riskometer | Very High Risk | Very High Risk |
Returns to 30 October 2026; risk ratios to 30 September 2026, 3 years; portfolios as of 30 September 2026; labels and ranks from Foliyo’s review of 23 October 2026. A “—” means the figure isn’t available for that fund.
Where each fund invests
Nippon India Small Cap Fund: sectors
- Industrials 23.9%
- Financial Services 15.8%
- Consumer Cyclical 14.9%
- Basic Materials 11.1%
- Consumer Defensive 9.1%
- Healthcare 9.0%
- Technology 7.3%
- Other 8.9%
HDFC Small Cap Fund: sectors
- Consumer Cyclical 22.0%
- Industrials 20.8%
- Financial Services 12.3%
- Healthcare 10.8%
- Technology 10.7%
- Basic Materials 7.8%
- Consumer Defensive 3.6%
- Other 11.9%
Nippon India Small Cap Fund: market cap
- Small cap 69.1%
- Large cap 14.3%
- Mid cap 13.1%
- Other 3.5%
HDFC Small Cap Fund: market cap
- Small cap 74.4%
- Mid cap 9.2%
- Large cap 6.5%
- Other 9.9%
Portfolio overlap
Nippon India Small Cap Fund and HDFC Small Cap Fund hold 31 of the same stocks and bonds; counting each common holding at the smaller of its two weights, 11% of the two portfolios overlap. That is low: the two portfolios are quite different.
Largest common holdings
Nippon India Small Cap FundHDFC Small Cap Fund
- Apar Industries Ltd
- Voltamp Transformers Ltd
- eClerx Services Ltd
- Aster DM Quality Care Ltd Ordinary Shares
- Kalpataru Projects International Ltd
- Krishna Institute of Medical Sciences Ltd
- Vardhman Textiles Ltd
- Timken India Ltd
Foliyo’s research on each
Nippon India Small Cap Fund
Rank 11 of 33, managed by Samir Rachh (lead since Jan 2017)
Strong A strong fund: ranks 11 of 33 in Small-Cap.
Pros
- Ahead of the peer median in 93.0% of rolling 3-year periods (weekly, last 3 years)
- Expense ratio 0.69% vs peer median 0.90%
- 5-year return (a year) 16.5% vs peer median 14.0%
Cons
No red flags this month.
HDFC Small Cap Fund
Rank 20 of 33, managed by Chirag Setalvad (lead since Jun 2014)
Steady Middle of the pack: ranks 20 of 33 in Small-Cap.
Pros
- Lead manager has run it for 12.3 years
- Worst fall (3Y) -19.5% vs peer median -22.5%
Cons
- 3-year return (a year) 8.9% vs peer median 12.8%
- Sharpe ratio (3Y) 0.28 vs peer median 0.53
See where they stand among all small cap funds: Best Small Cap Funds.
How Foliyo’s research ranks funds
Every month Foliyo’s Research Desk reviews each Indian mutual fund with at least ₹500 Cr under management (1,035 funds in the review of 23 October 2026), through its Direct Growth plan, and ranks it against the other funds in its category. No fund house pays us, and we earn no commission, so the ranking has no reason to favour anyone. For equity funds the ranking weighs:
- Performance (35%): 3, 5 and 1-year returns, and where the fund stands among all funds in its category over 3 and 5 years.
- Consistency (25%): how often the fund was ahead of its peers over rolling 1 and 3-year periods, and in how many calendar years it finished in the top half.
- Risk (25%): return per unit of risk (Sharpe and Sortino ratios), how much of the market’s falls it took (downside capture), its worst fall and its volatility.
- Cost (10%) and stability (5%): the expense ratio, and how long the lead manager has run the fund.
Where a fund stands sets its label: Leader (the strongest in the category), Strong, Steady and Laggard (behind most of its peers). A fund under 3 years old is never judged on a full record: its first year is compared with every peer’s last year (1-year return 25%, steadiness against peers 15%, Sharpe ratio 15%, worst fall 10%, downside capture 10%, cost 15%), and it is labelled Emerging when that start is among the strongest, or Too early otherwise. Red flags are set by rule, never by opinion: a new lead manager, a portfolio that strays from the category’s mandate, high cash, high cost or a concentrated portfolio.
Frequently asked questions
Which is better, Nippon India Small Cap Fund or HDFC Small Cap Fund?
On Foliyo’s research (review of 23 October 2026), Nippon India Small Cap Fund is Strong (rank 11 of 33) and HDFC Small Cap Fund is Steady (rank 20 of 33). Which suits you depends on your goals and what else you own; the ranking describes the past, not the future.
Which has given higher returns, Nippon India Small Cap Fund or HDFC Small Cap Fund?
Over 3 years Nippon India Small Cap Fund returned 13.0% a year and HDFC Small Cap Fund 8.9%; over 5 years 17.1% and 13.1% a year (Direct Growth, to 30 October 2026). ₹10 lakh invested 3 years ago would be ₹14.42 lakh and ₹12.97 lakh.
Which has the lower expense ratio?
Nippon India Small Cap Fund charges 0.69% a year and HDFC Small Cap Fund 0.79% (Direct plans). Regular plans of both cost more, because they include the distributor’s commission.
How much do Nippon India Small Cap Fund and HDFC Small Cap Fund overlap?
About 11% of the two portfolios overlap: they share 31 holdings, as of 30 September 2026.
Should I invest in both Nippon India Small Cap Fund and HDFC Small Cap Fund?
Two funds from the same category often hold many of the same companies (here about 11%), so a second one adds cost and paperwork more than diversification. A fee-only adviser can check how they fit with the rest of your portfolio: talk to a Foliyo adviser.
Why hire a Foliyo Advisor?
- Unbiased
- No commissions, ever
- SEBI-registered RIA
- Best-in-class research