Nippon India Small Cap Fund, India’s largest active small-cap mutual fund by assets under management, added eight stocks and completely exited four in October 2026. Its portfolio held 260 stocks, and its assets under management stood at ₹76,903 crore as of October 2026. The month’s disclosures also show fresh buying in large-cap names ITC and Bank of Baroda and a marginal increase in the fund’s expense ratio.
ITC leads eight fresh additions
ITC was the largest new purchase, with 2.15 crore shares bought. Bank of Baroda followed with about 82.21 lakh shares. The other additions were Aequs, with 36.38 lakh shares; Sahajanand Medical Technologies, with 14.37 lakh shares; SFC Environmental Technologies, with 12.72 lakh shares; Bonfiglioli Transmissions, with 7.31 lakh shares; EAAA India Alternatives, with 4.70 lakh shares; and Star Health and Allied Insurance Company, with 2.00 lakh shares.
Four complete exits
The fund fully exited Fineotex Chemical, Jio Financial Services, Vedant Fashions and Asian Paints. The monthly disclosure listed those four positions with 107.46 lakh shares for Fineotex Chemical, 69.76 lakh for Jio Financial Services, 12.35 lakh for Vedant Fashions and 3.10 lakh for Asian Paints. The four were complete disposals, while the fund continued to hold and adjust other positions during the month.
Swiggy, Tata Steel, Kotak among 21 raised
Existing holdings were adjusted through increases in 21 stocks and reductions in 11. Swiggy, Tata Steel and Kotak Mahindra Bank were among the stocks where the fund added 50 lakh shares each. State Bank of India, Allied Blenders and Distillers and UTI Asset Management Company were among the stocks where its exposure declined.
Top 10 holdings
HDFC Bank was the largest holding at 2.02% of net assets, up 0.27 percentage points from September. TD Power Systems was next at 1.79%, down 0.09 percentage points, followed by Bharat Heavy Electricals at 1.74%, down 0.03 points. Apar Industries held 1.65%, down 0.09 points, and Karur Vysya Bank 1.48%, up 0.20 points.
Sai Life Sciences accounted for 1.33%, up 0.09 points; Acme Solar Holdings 1.29%, down 0.04 points; Multi Commodity Exchange of India 1.16%, up 0.02 points; Sundram Fasteners 1.15%, down 0.05 points; and Elantas Beck India 1.13%, down 0.03 points. TD Power Systems and Apar Industries recorded the biggest weight reductions, at 0.09 percentage points each. The ten largest holdings accounted for 14.74% of net assets.
Expense ratio and returns
The regular plan’s expense ratio rose to 1.33% in October from 1.32% in September. The direct plan’s ratio moved from 0.60% to 0.61%.
Against the Nifty Smallcap 250 TRI, the fund returned 0.28% over one year to 31 October 2026, compared with -2.61% for the benchmark. Its three-year return was 12.95% versus 12.39%, and its five-year return was 17.06% versus 13.10%. The fund outperformed the benchmark in all three periods. The margin over the benchmark was 2.89 percentage points over one year, 0.56 points over three years and 3.96 points over five years.
Portfolio changes in context
The fund’s AUM of ₹76,903 crore makes it the largest active small-cap fund in India, based on the October 2026 figure. Its 260-stock portfolio includes large-cap names such as ITC and Bank of Baroda, which were among the fresh additions for the month. The changes spanned new purchases, complete exits and adjustments to existing positions rather than a single concentrated move.
The figures are for educational and informational purposes and are not investment advice. Investors should consult a SEBI-registered adviser before making investment decisions.