Synopsis– Choosing the right small-cap mutual fund can significantly impact long-term wealth creation. This article compares Nippon India Small Cap and Quant Small Cap funds across performance, portfolio, and strategy to help align with your investment goals.
The importance of selecting the appropriate small-cap mutual fund leads to a huge difference in wealth creation over time especially in high-growth categories like small caps. The two funds that are mainly involved in this niche are Nippon India Small Cap Fund and Quant Small Cap Fund that have provided stunning returns to their investors yet with massive differences in the investment style, portfolio balancing, and risk-taking capabilities. This article talks about their performance, holding, sector allocation and cost structure in order to help you choose which of them is better aligned to your Investment Goal.
Performance Comparison
| Time Period | Quant Small Cap Fund (Direct Growth) | Nippon Small Cap Fund (Direct Growth) | Benchmark (NIFTY Smallcap 250 TRI) |
| CAGR Since Inception | 18.23% | 25.44% | 16.35% |
| 1-Year Return | -5.70% | -4.21% | -2.19% |
| 3-Year CAGR | 28.89% | 26.97% | 26.40% |
| 5-Year CAGR | 41.46% | 37.41% | 32.83% |
| 10-Year CAGR | 20.57% | 21.96% | 15.49% |
These two funds have surpassed the benchmark in any period but when the Market returns were negative, both the funds well more than market. Quant Small Cap offers better short to medium term returns particularly at 3 and 5 years. But Nippon India Small Cap will have a better since inception and 10-year track record which makes it a more consistent long term compounding fund. Nippon might suit longer term investors and for tactical investors that are more focused on greater near term growth, Quant might be more suitable.
Basic Fund Details
| Parameter | Nippon India Small Cap | Quant Small Cap |
| Minimum Lump Sum Amount | NA | ₹5,000 |
| Minimum SIP Amount | ₹100 | ₹1,000 |
| Fund Size (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 more of an established vehicle with bigger fund size thus higher liquidity. It also provides more accessibility with their minimum SIP amount of ₹100. Quant with the higher expense ratio might take up returns in the long run but it has performed well in the last 3 and 5 years.
Table Showing Sector Allocation Comparison
| Nippon India Small Cap | Allocation (%) | Quant Small Cap | Allocation (%) |
| Capital Goods | 16.90% | Financial Services | 17.94% |
| Financial Services | 15.66% | Oil, Gas & Consumable Fuels | 15.10% |
| Healthcare | 8.55% | Healthcare | 13.98% |
| FMCG | 7.53% | Consumer Services | 7.33% |
| Consumer Durables | 7.40% | Chemicals | 6.27% |
| Chemicals | 7.28% | Construction | 6.04% |
| Automobile & Auto Components | 6.11% | Capital Goods | 5.11% |
| Consumer Services | 4.93% | FMCG | 4.85% |
| Information Technology | 4.09% | Textiles | 3.29% |
| Construction | 3.06% | Automobile & Auto Components | 2.46% |
As of July 2025*
Nippon India Small Cap is wide-ranging in its exposure with a balance in consumer, industrial, and technology themes. It is more diversified, and particularly in manufacturing and IT. Quant Small Cap on the other hand is much more skewed aggressively in favour of financials, energy, and healthcare with a high-conviction strategy that is thematic. This focus may perform miracles in the bull markets but adds volatility when the cycles reverse.
Holdings
Nippon India Small Cap Fund has a holding constituted of 235 companies,Quant Small Cap Fund Direct Growth has a portfolio of 106 Companies. Nippon India has a more diversified Portfolio.
Table Showing Top 5 Holdings of Each Company
| Rank | Nippon India Small Cap | Allocation (%) | Quant Small Cap | Allocation (%) |
| 1 | MCX | 2.49% | Reliance Industries Ltd. | 9.90% |
| 2 | HDFC Bank | 2.00% | Jio Financial Services | 6.17% |
| 3 | Kirloskar Brothers Ltd. | 1.58% | Aegis Logistics Ltd. | 3.45% |
| 4 | Karur Vysya Bank Ltd. | 1.28% | RBL Bank Ltd. | 3.18% |
| 5 | Elantas Beck India Ltd. | 1.24% | Bikaji Food International Ltd. | 2.81% |
As of July 2025*
The largest holdings of Quant are highly concentrated, with two stocks “Reliance and Jio Financial” covering more than 16% of the portfolio. Holdings of Nippon are more diversified, indicating a bottom-up approach to stock picking. When you like to concentrate and take strong bets, Quant is the winner. Nippon is safer in case you are inclined to diversified exposure.
Also read: Top Performing Defence Mutual Funds and ETFs in India for 2025: Are They in Your Portfolio?
Market Capital Distribution
Quant Small Cap Fund has very less allocation in Mid Cap Sector, Making it more leaned towards Small Cap and Large Cap. 96% of the funds are invested in Equity, 2.8% in cash and 1.1% in debt.
Nippon India Small Cap Fund has a balanced approach with a good proportion in Mid cap. 96% of the funds are invested in Equity and 4% in Cash.
Final Thoughts
Nippon India Small Cap Fund may be preferred if you look for Long-term stability, lower Expense ratio, broader diversification and lower entry SIP. On the other hand select Quant Small Cap fund if you prefer high returns with aggressive nature, more inclined towards sector or thematic, seeking alpha in short period and prefer high risk to enjoy high rewards. To sum up, the decision should be made based on your risk appetite and investment time horizon. Quant may be a good choice of active or aggressive long-run investors and Nippon may be a good choice of conservative or new investor.
Written by Prajwal Hegde
