Archive · 8 Oct 2026
Nippon India and Bandhan Small-Cap Funds Compared
Nippon India and Bandhan are two funds that invest mostly in smaller companies.
These investments can rise or fall sharply, and both funds had a difficult quarter followed by a strong one in 2026.
Bandhan had higher reported returns than Nippon over the periods compared in the article.
But Nippon has been around longer and has a longer record through different market conditions.
Nippon also manages more money and holds a slightly wider range of stocks.
Bandhan held more of its portfolio outside shares, which the article says could cushion a falling market.
The funds also differ in which industries and companies they invest in.
The article says neither fund is automatically best for everyone; their histories, risks and portfolios differ.
Past returns do not guarantee future results.
Bandhan led Nippon across the reported three-month, six-month, one-year, three-year and five-year return periods.
Over five years, Bandhan returned 17.61% annualised and Nippon 17.10%; both beat the Nifty Smallcap 250 TRI.
Nippon, launched in 2010, had Rs 82,580 crore in assets and held 254 stocks as of August 31, 2026.
Bandhan had Rs 34,176 crore in assets and held 258 stocks; its current managers have run it since June 2023.
Nippon has a longer record across market cycles, while Bandhan had lower portfolio valuations and more assets outside equity in the reported comparison.
- Who
- Nippon India Small Cap Fund and Bandhan Small Cap Fund, managed by their respective investment teams.
- What
- A comparison of the funds’ returns, portfolios, risks, costs and investment histories.
- When
- The article reports returns as of October 1, 2026, and portfolio assets as of August 31, 2026.
- Where
- India.
- Why
- To compare two small-cap funds and explain how their performance, portfolios and histories differ.
Case for Nippon
Case for Bandhan
Track record and returns
Case for Nippon
Nippon has operated since 2010, has a longer record through market cycles, and its ten-year SIP result exceeded the benchmark, according to the article.
Case for Bandhan
Bandhan had higher reported returns over the three-month through five-year periods, including a 21.54% annualised three-year return.
Portfolio and valuation
Case for Nippon
Nippon holds 254 stocks across 35 sectors, offering broad diversification, and has a larger share in large- and mid-cap stocks.
Case for Bandhan
Bandhan's reported portfolio P/E and P/B were lower than Nippon's, and it held a larger share of assets outside equity.
How to interpret the record
Case for Nippon
Nippon's longer operating history and manager tenure provide evidence across a more extended period, although its three-year return slightly trailed the benchmark.
Case for Bandhan
Bandhan's recent performance is stronger, but its current managers have run it only since June 2023; earlier results were under previous management.
- Five-year annualised return
- Bandhan: 17.61%; Nippon: 17.10%.
- Three-year annualised return
- Bandhan: 21.54%; Nippon: 13.38%.
- Benchmark
- Nifty Smallcap 250 TRI.
- Assets under management
- As of August 31, 2026: Nippon Rs 82,580 crore; Bandhan Rs 34,176 crore.
- Number of stocks
- Nippon: 254; Bandhan: 258.
- Portfolio outside equity
- Nippon: 2.74%; Bandhan: 13.44%, as reported in the article.
- Current management tenure
- Samir Rachh has managed Nippon since January 2017; Manish Gunwani and Kirthi Jain have managed Bandhan since June 2023.