Introduction
Have you wished to invest early in companies that are the market giants now? You can do it now by investing in Nippon India Small Cap Fund that helps you to invest early in growing companies.
It is a small-category mutual fund that primarily focuses on investing in small companies. These companies has the potential to become mid cap tomorrow. By investing in these emerging companies, the fund aims to provide high returns in mutual funds. Over time, the fund gained popularity among investors by providing consistent results. This is why it has a large AUM (asset under management) of Rs. 57,009 crores which makes it a largest fund in small cap category.
This article will help you to cover its investing strategy, expert management and many more. So keep reading to explore everything.
What is Nippon India Small Cap Fund?
Nippon small cap fund is an equity fund that aims to deliver higher returns to investors. It was started by Nippon India Mutual Fund in the year 2013. At present, the Nippon India small cap fund NAV (Net Asset Value) is Rs. 160.25 as of March 2025.
The fund primarily focuses on investing in small-sized companies to generate returns. These companies market value is between Rs. 1000-5000 crores. The biggest advantage of investing is these companies have the potential to become mid cap tomorrow.
The reason behind Nippon India small cap fund growth is its investing strategy. It not only focuses on generating growth but also manages risk more effectively. This makes the fund stand out in the market and grow over time. Now let’s understand how the fund invests to achieve growth.
How Does Nippon India Small Cap Fund Invest?
The fund follows a research-driven investing strategy to invest in small-cap stocks. Instead of investing directly in companies, the fund uses a bottom-up stock selection. A team of experts analyse every company on the basis of performance, business style and future growth. By considering these factors, experts pick profitable stocks that have high growth potential.
To make the investment future-proof, the fund also uses diversification. In simple words, it spreads portfolios into different sectors of small companies. This helps to reduce the risk and also achieve sectoral growth. Because the market goes up and down, this is why the focus on long-term investment. It means to make great returns and reduce risk, you should invest for at least 5-7 years.
This strong investing strategy is the reason behind Nippon India small cap fund regular growth. It not only helps the fund to build high returns but also manages risk effectively.
Who is the Fund Manager of Nippon Small Cap Fund?
The brain behind this impressive fund is Samir Rachh who has been managing the fund since 2017. He comes with 30 years of valuable experience in equity research and portfolio management. As of March 2025, he is managing an AUM (Asset Under Management) of Rs. 57,010 crores.
He is responsible for executing investing strategies that are beneficial for Nippon India small cap fund growth. He uses bottom-up selection, diversification and long-term investment to build long-term wealth. His strong knowledge of the market helps him to adapt every new growth opportunity.
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. Samir holds a strong name in the market because of his investing approach and strong mindset.
Why SIP in Nippon India Small Cap Fund a Smart Choice?
Investing in Nippon small cap fund is a great way to build wealth but it is important to consider that the fund has to face volatility. But you can reduce this risk by starting a systematic investment plan in the fund. Here are some factors that show why starting a SIP plan is a smart choice:
- Strong Wealth Creation
The Nippon India small cap fund regular growth plan focuses on investing in the long term to generate high returns. By starting a systematic plan, you can invest in long term in the fund and leverage compounding to generate higher returns in future.
- Reduce Market Timing Risk
You can invest in the fund without waiting for the perfect time to leverage the fund growth potential. A systematic plan helps you to invest in mutual funds by investing a fixed amount at set times which means you can invest in any market conditions and make great returns.
- Flexibility in Investing
The systematic plan helps you to start investing in the fund with Rs. 100. This means if you want to leverage the growth of Nippon small cap fund without investing a large sum, a systematic plan will help you to do it while making a profit.
Who Should Invest in Nippon Small Cap Fund?
The Nippon India small cap fund has a track record of providing great returns. Although the fund is a great choice but its best suited for investors who are:
- Aggressive Investors
The fund focuses on small-cap stocks which are highly volatile compared to mid and large-cap. If you are an investor who wants to make great returns by taking enough risk, then you should invest in the fund.
- Regular Investors
If you prefer investing a desired fixed amount at set times, then investing in the fund is beneficial for you. It helps you to start a SIP which helps you to grow your money without investing a large sum.
- Long-Term Investors
The fund focuses on investing in the long term to generate great returns. If you are planning to invest for at least 5-7 years, then you should invest in the fund. It will help you to reduce the risk and build a strong wealth for the future.
Final Summary
To conclude, investing in Nippon India small cap fund is a great way for strong wealth creation. Its research-driven investing strategy and risk management approach makes it an impressive choice. Over time, small companies are growing and by investing in the Nippon small cap fund, you can leverage this growth opportunity to grow your money.
If you are worried about investing a large sum, then the fund also makes it easier for you. You can start your small cap investment through a SIP plan. It helps you to invest a fixed amount at set times and grow your money with the help of compounding. In short, you can say that the fund is a great choice for your portfolio that helps you to make wealth without investing a large capital.
