Synopsis– Choosing the proper small-cap mutual fund can considerably impression long-term wealth creation. This text compares Nippon India Small Cap and Quant Small Cap funds throughout efficiency, portfolio, and technique to assist align together with your funding targets.
The significance of choosing the suitable small-cap mutual fund results in an enormous distinction in wealth creation over time particularly in high-growth classes like small caps. The 2 funds which can be primarily concerned on this area of interest are Nippon India Small Cap Fund and Quant Small Cap Fund which have offered beautiful returns to their buyers but with large variations within the funding type, portfolio balancing, and risk-taking capabilities. This text talks about their efficiency, holding, sector allocation and price construction with a purpose to allow you to select which ones is best aligned to your Funding Aim.
Efficiency Comparability
| Time Interval | Quant Small Cap Fund (Direct Development) | Nippon Small Cap Fund (Direct Development) | Benchmark (NIFTY Smallcap 250 TRI) |
| CAGR Since Inception | 18.23% | 25.44% | 16.35% |
| 1-12 months Return | -5.70% | -4.21% | -2.19% |
| 3-12 months CAGR | 28.89% | 26.97% | 26.40% |
| 5-12 months CAGR | 41.46% | 37.41% | 32.83% |
| 10-12 months CAGR | 20.57% | 21.96% | 15.49% |
These two funds have surpassed the benchmark in any interval however when the Market returns had been unfavorable, each the funds nicely greater than market. Quant Small Cap provides higher quick to medium time period returns significantly at 3 and 5 years. However Nippon India Small Cap can have a greater since inception and 10-year monitor report which makes it a extra constant long run compounding fund. Nippon would possibly go well with long run buyers and for tactical buyers which can be extra centered on better close to time period development, Quant is perhaps extra appropriate.
Fundamental Fund Particulars
| Parameter | Nippon India Small Cap | Quant Small Cap |
| Minimal Lump Sum Quantity | NA | ₹5,000 |
| Minimal SIP Quantity | ₹100 | ₹1,000 |
| Fund Measurement (AUM) | ₹66,601Cr (30-Jul-2025) | ₹29,629 Cr (30-Jul-2025) |
| Expense Ratio (ER) | 0.64% | 0.72% |
| NAV | ₹190.79 | ₹280.38 |
Nippon India small cap fund is extra of a longtime automobile with greater fund measurement thus greater liquidity. It additionally gives extra accessibility with their minimal SIP quantity of ₹100. Quant with the upper expense ratio would possibly take up returns in the long term however it has carried out nicely within the final 3 and 5 years.
Desk Displaying Sector Allocation Comparability
| Nippon India Small Cap | Allocation (%) | Quant Small Cap | Allocation (%) |
| Capital Items | 16.90% | Monetary Providers | 17.94% |
| Monetary Providers | 15.66% | Oil, Fuel & Consumable Fuels | 15.10% |
| Healthcare | 8.55% | Healthcare | 13.98% |
| FMCG | 7.53% | Shopper Providers | 7.33% |
| Shopper Durables | 7.40% | Chemical compounds | 6.27% |
| Chemical compounds | 7.28% | Building | 6.04% |
| Car & Auto Parts | 6.11% | Capital Items | 5.11% |
| Shopper Providers | 4.93% | FMCG | 4.85% |
| Info Expertise | 4.09% | Textiles | 3.29% |
| Building | 3.06% | Car & Auto Parts | 2.46% |
As of July 2025*
Nippon India Small Cap is wide-ranging in its publicity with a stability in client, industrial, and know-how themes. It’s extra diversified, and significantly in manufacturing and IT. Quant Small Cap then again is rather more skewed aggressively in favour of financials, vitality, and healthcare with a high-conviction technique that’s thematic. This focus could carry out miracles within the bull markets however provides volatility when the cycles reverse.
Holdings
Nippon India Small Cap Fund has a holding constituted of 235 corporations,Quant Small Cap Fund Direct Development has a portfolio of 106 Corporations. Nippon India has a extra diversified Portfolio.
Desk Displaying High 5 Holdings of Every Firm
| Rank | Nippon India Small Cap | Allocation (%) | Quant Small Cap | Allocation (%) |
| 1 | MCX | 2.49% | Reliance Industries Ltd. | 9.90% |
| 2 | HDFC Financial institution | 2.00% | Jio Monetary Providers | 6.17% |
| 3 | Kirloskar Brothers Ltd. | 1.58% | Aegis Logistics Ltd. | 3.45% |
| 4 | Karur Vysya Financial institution Ltd. | 1.28% | RBL Financial institution Ltd. | 3.18% |
| 5 | Elantas Beck India Ltd. | 1.24% | Bikaji Meals Worldwide Ltd. | 2.81% |
As of July 2025*
The most important holdings of Quant are extremely concentrated, with two shares “Reliance and Jio Monetary” protecting greater than 16% of the portfolio. Holdings of Nippon are extra diversified, indicating a bottom-up strategy to inventory selecting. Once you like to pay attention and take robust bets, Quant is the winner. Nippon is safer in case you’re inclined to diversified publicity.
Additionally learn: High Performing Defence Mutual Funds and ETFs in India for 2025: Are They in Your Portfolio?
Market Capital Distribution
Quant Small Cap Fund has very much less allocation in Mid Cap Sector, Making it extra leaned in direction of Small Cap and Giant Cap. 96% of the funds are invested in Fairness, 2.8% in money and 1.1% in debt.
Nippon India Small Cap Fund has a balanced strategy with a great proportion in Mid cap. 96% of the funds are invested in Fairness and 4% in Money.
Closing Ideas
Nippon India Small Cap Fund could also be most popular if you happen to search for Lengthy-term stability, decrease Expense ratio, broader diversification and decrease entry SIP. Then again choose Quant Small Cap fund if you happen to choose excessive returns with aggressive nature, extra inclined in direction of sector or thematic, searching for alpha in brief interval and like excessive danger to get pleasure from excessive rewards. To sum up, the choice must be made based mostly in your danger urge for food and funding time horizon. Quant could also be a sensible choice of lively or aggressive long-run buyers and Nippon could also be a sensible choice of conservative or new investor.
Written by Prajwal Hegde
