NIPPON INDIA SMALL CAP FUND - IDCW Option

NIPPON INDIA SMALL CAP FUND - IDCW Option ranks among the stronger performers in the Small Cap category, backed by a 4-star rating. Consistent 3-year performance combined with a strong rating makes this one of the more credible options in its space. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 90/100.

Cost: At 0.69%, the expense ratio is meaningfully cheaper — about 10% below the Small Cap category average of 0.77% (based on 253 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a modest Sharpe ratio of 0.06 — returns have only marginally compensated for the risk taken. Separately, with 72.13% annualised volatility, this is among the more turbulent funds in the Small Cap space — expect sharp swings in both directions.

Who should invest: This fund is best suited to investors with a 7-10 year horizon who can stomach 30-40% drawdowns in a bad year in exchange for higher long-term growth potential. Given the Very High risk rating, this fund is not suited to short-term goals or investors who may need to exit within 2-3 years.