Sundaram Small Cap Fund

March 28, 2026 RA Jainee Leave a reply

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Sundaram Small Cap Fund

⚖️ Sahifund Review – Sundaram Small Cap Fund ✔ 

⚖️ Sahifund Review – Sundaram Small Cap Fund ✔

PLUS: Stability, track record, cost efficiency
Sundaram Small Cap Fund stands out for its strong long-term consistency, having delivered nearly 19% CAGR over 5 years and over 15% CAGR over 10 years, which is impressive in the volatile small-cap category. The fund has also outperformed its benchmark across 1-year, 3-year, 5-year and 10-year periods, showing reliable alpha generation. With a well-diversified portfolio of 65 stocks and relatively low top-10 concentration, the fund avoids excessive single-stock risk. Its moderate turnover of 34.6% reflects a more stable portfolio strategy compared to aggressive churn-heavy peers. The SIP-friendly minimum investment of Rs. 100 makes it accessible for retail investors building long-term wealth. Backed by the credibility of Sundaram Mutual Fund, this scheme suits investors seeking pure small-cap exposure with portfolio balance rather than speculative concentration.

MINUS: Large AUM, large-cap bias, momentum lag
Despite healthy long-term returns, the fund still lags top-performing peers like Nippon India Small Cap and Quant Small Cap on 3-year and 5-year returns, which slightly weakens its category leadership. Its recent momentum has been uneven, with weaker 1-month and 3-month performance reflecting short-term pressure in the small-cap space. The fund holds 65 stocks, which while diversified, can also lead to return dilution during sharp small-cap rallies. Expense ratio at 0.83% is acceptable, but not among the lowest in the category. Being a pure small-cap fund, it naturally carries high volatility risk and can witness deep drawdowns in weak market phases. Also, investors expecting quick upside should remember that this is more of a steady compounding small-cap fund than a high-octane momentum play.

Sahifund View (Decisive Line):
A solid SIP-worthy small-cap fund for patient investors, but those chasing category-topping aggression may find better alternatives elsewhere.

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| NFO Guidance |

What lies ahead? Below we decode returns consistency, portfolio concentration, peer positioning and risk profile in detail. 

Suitable For Which Investors? 
Small-cap funds are suitable for investors: 
1. Seeking exposure in small-cap stocks for high returns 
2. Aiming for long-term wealth creation 
3. With a 7+ year investment horizon 
4. Who can withstand interim sharp declines in investment value 
Note: 
• Invest only through SIP 

Fund’s Investment Strategy: 
The scheme seeks to achieve capital appreciation by investing predominantly in diversified stocks that are generally termed as smallcap stocks. 

Fund Manager: 

1) Rohit Seksaria 
Education: Mr. Seksaria is CS, CA & has done MBA from IIM Ahmedabad 
Experience: Prior to joining Sundaram Mutual Fund he has worked with Progress Capital/Asia Capital & Advisor Pte Ltd., Matchpoint Investment Management and Progress Capital Pte Ltd.