SBI Small Cap Fund vs Nippon India Small Cap Fund: Which Delivered Better Returns?

DSIJ Intelligence / 06 Jul 2026 / Categories: Mindshare, Mutual Fund, Trending

Which small-cap fund has rewarded investors better over the years? Here's how SBI Small Cap Fund stacks up against Nippon India Small Cap Fund.

Small-Cap Mutual Funds have long been a preferred choice for investors seeking higher long-term growth, though they also come with relatively higher volatility. When comparing two of the largest schemes in the category—SBI Small Cap Fund and Nippon India Small Cap Fund—it's important to look beyond recent returns and evaluate long-term performance, risk metrics, and fund characteristics.

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Here's how the two funds stack up.

Fund Overview

Particulars	SBI Small Cap Fund	Nippon India Small Cap Fund
Launch Date	September 1, 2009	September 16, 2010
AUM	Rs 37,407.59 crore	Rs 74,580.37 crore
Expense Ratio	1.53 per cent	1.47 per cent

Returns Comparison

The performance data shows that Nippon India Small Cap Fund has outperformed SBI Small Cap Fund across almost every investment horizon.

Period	SBI Small Cap Fund	Nippon India Small Cap Fund
1-Year	2.83 per cent	4.43 per cent
3-Year	13.33 per cent	18.20 per cent
5-Year	14.18 per cent	19.83 per cent
10-Year	18.07 per cent	20.69 per cent
Since Launch	18.73 per cent	20.11 per cent

While both funds have generated strong long-term returns, Nippon India Small Cap Fund has consistently delivered higher returns over the 3-year, 5-year, 10-year, and since-launch periods.

Which Fund Looks Better?

Based on the available data, Nippon India Small Cap Fund appears to have the edge over SBI Small Cap Fund. It has delivered higher returns across most investment horizons, offers better risk-adjusted performance, has a positive alpha, and comes with a marginally lower expense ratio.

However, investors should remember that small-cap funds are inherently volatile and are best suited for those with a long investment horizon and a higher risk appetite. Rather than choosing a fund solely based on historical returns, investors should also consider their financial goals, investment horizon, and overall asset allocation before making an investment decision.

Disclaimer: The article is for informational purposes only and not investment advice.