📊 Small Cap Fund · Deep Analysis

Sundaram Small Cap Fund

Direct Growth · SEBI Category: Small Cap Fund · AMC: Sundaram Mutual Fund

Current NAVLoading...
1 Year Return—
3 Year Return—
5 Year Return—
AUM₹2,800 Cr+
Expense Ratio0.96%
Min SIP₹100/mo
Live data: Fetching from MF API India — charts and returns loading below...
Fund Overview

Sundaram Small Cap Fund — Quick Summary

Sundaram Small Cap Fund is one of India's oldest small cap funds — launched in February 2005, giving it over 20 years of history. This makes it one of the very few funds that can show investors how it performed during the 2008 global financial crisis from the beginning. However, its expense ratio of 0.96% is the highest among all funds on this page — a significant cost drag that investors must weigh carefully against its long track record.

Fund House
Sundaram Mutual Fund
Category
Small Cap Fund
Launch Date
February 2005
AUM
₹2,800 Cr+
Expense Ratio
0.96% (Direct)
Minimum SIP
₹100/mo
Benchmark
Nifty Smallcap 250 TRI
Exit Load
1% if < 1 year
Fund Manager
Rahul Baijal
Risk Level
Very High
Ideal Horizon
7+ Years
LTCG Tax
12.5% above ₹1.25L

✓ Suitable For

✓Investors with 7+ year horizon who can stay patient through crashes
✓SIP investors doing rupee cost averaging every month without stopping
✓Those seeking high wealth creation and comfortable with high volatility
✓Experienced investors using this as a satellite allocation in a diversified portfolio

✗ Not Suitable For

✗First-time investors — start with a large cap or hybrid fund first
✗Anyone who needs money within 3–5 years — small caps can be down for years
✗Investors who panic sell — 40–50% crashes are normal in this category
✗Those making it their only fund — concentration in small caps is dangerous
Who Runs This Fund

Fund Manager

SR
Rahul Baijal
Fund Manager, Sundaram Mutual Fund
Managing Since
2021
Experience
20+ Years
Funds Managed
3 Funds
Total AUM
₹5,000 Cr+

Rahul Baijal took over management of Sundaram Small Cap Fund in 2021 and has been working to improve its standing in the category. Sundaram MF is a Chennai-based fund house with strong roots in South India. The investment approach is value-oriented, identifying businesses trading at discounts to intrinsic value across the small cap universe.

Fund History

Key Moments in Fund's Life

February 2005
🚀 Fund Launch — 20 Years Ago
One of the oldest small cap funds in India. Launched when the small cap category was barely defined. Few fund houses were willing to take this risk in 2005.
2008
💥 Global Financial Crisis
Being 3 years old when the 2008 crisis hit, Sundaram Small Cap faced its first major test. Small caps lost 60-70% globally. Recovery took years — but the fund survived and eventually delivered.
2013 — 2017
📈 The Great Bull Run
Strong performance during the small cap bull market. The fund became well-known in South India particularly, where Sundaram MF has strong distribution.
2018 — 2020
⚡ Extended Downturn
NBFC crisis followed by COVID created 2+ years of pain. Sundaram Small Cap underperformed some peers during this period.
2021
🔄 Management Change
Rahul Baijal took over as fund manager, bringing a fresh perspective to portfolio construction.
2024
📊 20-Year Anniversary
Two decades of small cap investing — very few funds can claim this milestone. The long history provides a wealth of data for investors to analyse.
What They Don't Tell You

The Dark Chapters

Every fund has painful periods. Here's an honest look at when Sundaram Small Cap Fund struggled — because understanding this is crucial before investing.

0.96% Expense Ratio
Most Expensive Active Small Cap Fund in This Comparison
Sundaram Small Cap charges 0.96% — nearly 3.5x the cost of Tata Small Cap (0.28%). Over a 20-year period, this cost difference compounds dramatically. A ₹1 lakh investment growing at 15% for 20 years gives ₹16.4 lakh at 0.28% ER but only ₹13.8 lakh at 0.96% ER — a difference of nearly ₹2.6 lakh just from cost. This is Sundaram Small Cap's biggest weakness.
Cost nearly 3.5x vs cheapest peer Tata
2018 — 2020 Underperformance
Missed the Post-Recovery Rally Initially
During the challenging 2018-2020 period and the early post-COVID recovery, Sundaram Small Cap underperformed several peers. Investors who compared returns during this period were disappointed.
Underperformed peers in key 2-year window
Smaller AMC in Competitive Category
Sundaram Competes Against Giants
Sundaram MF, while reputable, competes against SBI (₹29,000 Cr AUM), Nippon (₹60,000 Cr AUM), HDFC, ICICI in terms of research resources. Smaller fund houses sometimes struggle to cover the entire small cap universe with the same depth as larger peers.
Research resource gap vs larger peers
⚠️ Educational Disclaimer: The dark chapters above are presented for educational awareness only. Past difficulties do not predict future performance. CRNIndia.com is NOT a SEBI/AMFI registered advisor. Please consult a qualified financial advisor before investing.
Live Data Sections Below
Performance

Returns vs Benchmark

1 Month
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Nifty SC: —
3 Month
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Nifty SC: —
6 Month
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Nifty SC: —
1 Year
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Nifty SC: —
3 Year CAGR
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Nifty SC: —
5 Year CAGR
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Nifty SC: —
10 Year CAGR
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Nifty SC: —
Since Inception
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Sep 2009
Consistency Analysis

Rolling Returns ℹ️ What is this?

Rolling returns show how the fund performed across every possible investment period — not just one cherry-picked date. This reveals true consistency. Learn more →

1Y Rolling (Avg)
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% of times positive: —
3Y Rolling (Avg)
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% of times positive: —
5Y Rolling (Avg)
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% of times positive: —
1-Year Rolling Returns Each point = 1yr return from that date
Risk Analysis

Maximum Drawdown ℹ️ What is this?

Drawdown shows the biggest fall from peak NAV. This is what investors actually experience during market crashes. Learn more →

Max Drawdown Ever
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Recovery time: —
2020 Covid Crash
-40.2%
Recovery: 14 months
2018 IL&FS Crisis
-28.6%
Recovery: 24 months
Current from Peak
—
Peak NAV: —
Drawdown Chart % fall from rolling peak NAV
Valuation Signal

NAV vs 200-Day Moving Average

When NAV is above 200 DMA, the fund is in an uptrend. When below, it signals caution. Many investors use this as a simple entry/exit signal.

Current NAV
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200 DMA
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NAV vs DMA
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Loading signal...
NAV vs 200 DMA
Risk Metrics

Risk Ratios

Alpha (3Y)
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Excess return over benchmark. Higher is better.
Beta (3Y)
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Volatility vs market. >1 means more volatile.
Sharpe Ratio
—
Return per unit of risk. >1 is considered good.
Sortino Ratio
—
Like Sharpe but only penalises downside risk.
Std Deviation
—
How much returns fluctuate. Lower = more stable.
R-Squared
—
How closely it tracks the benchmark index.
Benchmark Comparison

Fund vs Nifty Smallcap 250

₹1 Lakh invested — Growth comparison
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