The Nippon India Nifty Smallcap 250 Index Fund is an open-ended passive equity scheme designed to replicate the performance of the Nifty Smallcap 250 Total Return Index (TRI). The scheme provides investors access to a broad universe of small-cap companies through a rules-based index approach, eliminating fund manager bias while aiming to closely mirror index returns, subject to tracking error.
A Nifty Smallcap 250 Index Fund is a passively managed equity mutual fund that tracks the Nifty Smallcap 250 Index, representing the small-cap segment of the Indian equity market. The index comprises 250 companies ranked from 251 to 500 by market capitalisation within the Nifty 500 universe. These small-cap companies are typically in their growth or expansion phase, offering higher long-term growth potential but also higher volatility.
Key features of a Nifty Smallcap 250 Index Fund
| Particulars | Details |
|---|---|
| Scheme Name | Nippon India Nifty Smallcap 250 Index Fund |
| Category | Other – Index Fund |
| Scheme Type | Open-ended |
| Benchmark | Nifty Smallcap 250 TRI |
| Investment Style | Passive |
| Minimum Investment | ₹100 and multiples of Re.1 |
| Exit Load | Nil |
| Risk Level | Very High |
| Fund Manager | Mr. Himanshu Mange |
| NAV Disclosure | Daily |
| Liquidity | Redemption within 3 working days |
The investment objective of the scheme is to provide returns closely corresponding to the total returns of securities represented by the Nifty Smallcap 250 Index, before expenses and subject to tracking errors. There is no assurance that the investment objective will be achieved.
Benchmark Index: Nifty Smallcap 250 Index
Broad Small-Cap Exposure: Access to 250 small-cap companies through a single fund.
Rules-Based Investing: Eliminates fund manager bias by following a predefined index.
Low Cost Structure: Passive management leads to lower expense ratios.
Diversification:
Reduces single-stock risk compared to direct small-cap investing.
Long-Term Growth Potential: Small-cap segment historically benefits from India’s economic expansion.
| This scheme is suitable for investors who: |
|---|
| Want passive exposure to the small-cap equity segment |
| Are comfortable with very high volatility |
| Have an investment horizon of 5 years or more |
| Prefer index-based investing over active fund management |
| Seek long-term capital growth |
The scheme invests in all stocks constituting the Nifty Smallcap 250 Index.
Sector and company exposure is automatically determined by index methodology.
Top holdings and sector allocation are disclosed periodically on the AMC website as per regulatory norms.
For updated detailed Performance data and key informations as on July 27, 2026
Visit Nippon India Nifty Smallcap 250 Index Fund Performance Page
Expense Ratio: Check latest factsheet.
Exit Load: Nil
Taxation:
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| Investor Concern | How the Scheme Addresses It |
|---|---|
| High volatility | Diversification across 250 stocks |
| Fund manager risk | Completely passive strategy |
| High costs | Lower expense ratio vs active funds |
| Stock selection difficulty | Index-based allocation |
| Liquidity worries | Open-ended with T+3 redemption |
A1. No. It is a passively managed index fund tracking the Nifty Smallcap 250 TRI.
A2. No. Returns depend entirely on the performance of the underlying index.
A3. ₹100 and multiples of Re.1 thereafter.
A4. No, the scheme has nil exit load.
A5. Yes, but only temporarily for portfolio rebalancing and liquidity management.
The Nippon India Nifty Smallcap 250 Index Fund offers a structured, low-cost way to participate in India’s small-cap growth story through passive investing. While the diversification and index-tracking approach help manage risks, investors must be prepared for high volatility and long investment horizons.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Past performance is not a guarantee of future returns. Before investing, you should consult a qualified financial advisor, consider your risk tolerance, investment horizon, and review the latest scheme documents, factsheet and disclosures from Nippon India Mutual Fund.
📅 Last Updated on: December 16, 2025
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