is the largest open-ended small-cap mutual fund in India with an AUM of ₹72,673 crores.
As per SEBI regulations, small-cap funds must invest at least 65% of their assets in small-cap stocks. Hence, tracking the portfolio changes of such a big fund can provide insights into the small-cap stocks on which the fund manager is bullish and those where exposure is being reduced.
Here’s a closer look at the fund’s portfolio activity in May 2026, highlighting the stocks it added and trimmed during the month, along with its top 10 holdings.
Stocks where Nippon India Small Cap Fund raised its stake in May 2026
| Stock Name | April Weight (%) | May Weight (%) | Absolute Increase (% pts) |
| Bharat Heavy Electricals Limited | 1.67% | 1.93% | +0.26% |
| Avalon Technologies Limited | 0.56% | 0.79% | +0.23% |
| TD Power Systems Limited | 1.54% | 1.71% | +0.17% |
| Central Mine Planning & Design Institute Limited | 0.64% | 0.81% | +0.17% |
| MTAR Technologies Limited | 0.83% | 0.98% | +0.15% |
| Omnitech Engineering Limited | 0.43% | 0.57% | +0.14% |
| Gland Pharma Limited | 0.43% | 0.55% | +0.12% |
| State Bank of India | 1.18% | 1.29% | +0.11% |
| Vindhya Telelinks Limited | 0.18% | 0.29% | +0.11% |
| Timken India Limited | 0.56% | 0.67% | +0.11% |
| Craftsman Automation Limited | 0.66% | 0.76% | +0.10% |
| Kirloskar Oil Engines Limited | 0.87% | 0.96% | +0.09% |
| Bajaj Consumer Care Limited | 0.45% | 0.54% | +0.09% |
| Bharti Airtel Limited | 0.00% | 0.59% | +0.59% |
*Source: Fund’s Monthly Portfolio Disclosure
The buying trend suggests that Nippon India Small Cap Fund increased its exposure to several industrial, engineering, and capital goods companies in May.
This includes (BHEL), , , and Central Mine Planning & Design Institute, reflecting continued conviction in themes linked to power infrastructure, manufacturing, and the broader capital expenditure cycle.
The fund also raised its allocation to select financial and healthcare companies such as and , while increasing exposure to consumer-oriented businesses, including .
Additionally, the fund manager added a fresh position in during the month, indicating a new opportunity in the telecom space.
Stocks where Nippon India Small Cap Fund decreased its stake in May 2026
| Stock Name | April Weight (%) | May Weight (%) | Absolute Decrease (% pts) |
| Voltamp Transformers Limited | 1.04% | 0.82% | -0.22% |
| Multi Commodity Exchange of India Limited | 1.76% | 1.57% | -0.19% |
| NIIT Learning Systems Limited | 0.53% | 0.34% | -0.19% |
| Whirlpool of India Limited | 1.06% | 0.88% | -0.18% |
| Emami Limited | 1.03% | 0.90% | -0.13% |
| Hitachi Energy India Limited | 0.65% | 0.52% | -0.13% |
| HDFC Bank Limited | 1.89% | 1.77% | -0.12% |
| ISGEC Heavy Engineering Limited | 0.67% | 0.56% | -0.11% |
| Jyothy Labs Limited | 0.39% | 0.29% | -0.10% |
| Mas Financial Services Limited | 0.70% | 0.62% | -0.08% |
| Voltas Limited | 0.49% | 0.42% | -0.07% |
| Karur Vysya Bank Limited | 1.29% | 1.23% | -0.06% |
| Syngene International Limited | 0.79% | 0.73% | -0.06% |
| Vardhman Textiles Limited | 0.71% | 0.65% | -0.06% |
| The Ramco Cements Limited | 0.65% | 0.59% | -0.06% |
| PVR INOX Limited | 0.49% | 0.43% | -0.06% |
| ITC Limited | 0.22% | 0.00% | -0.22% |
| Siemens Energy India Limited | 0.22% | 0.00% | -0.22% |
*Source: Fund’s Monthly Portfolio Disclosure
The selling trend suggests that Nippon India Small Cap Fund trimmed its exposure to several industrial, capital goods, and financial sector companies during May.
Among the key reductions were , , , (MCX), , and .
The fund also reduced its allocation to select consumer and healthcare companies such as , , , and .
The fund manager made a complete exit from FMCG giant, and energy player, during the month, reflecting a more decisive portfolio reshuffle in these names.
Why analyzing the top 10 stock holdings of Nippon India Small Cap Fund is also important?
| Stock Name | May Weightage |
| Bharat Heavy Electricals Limited | 1.93% |
| HDFC Bank Limited | 1.77% |
| TD Power Systems Limited | 1.71% |
| Multi Commodity Exchange of India Limited | 1.57% |
| Apar Industries Limited | 1.55% |
| State Bank of India | 1.29% |
| NLC India Limited | 1.26% |
| Karur Vysya Bank Limited | 1.23% |
| Zydus Wellness Limited | 1.17% |
| Tube Investments of India Limited | 1.05% |
*Source: Fund’s Monthly Portfolio Disclosure
Analyzing the top 10 holdings of Nippon India Small Cap Fund provides insight into the fund manager’s highest-conviction stocks that are likely to have the greatest influence on the fund’s performance.
As of May 2026, Bharat Heavy Electricals (BHEL), HDFC Bank, TD Power Systems, Multi Commodity Exchange of India (MCX), and Apar Industries were among the fund’s top 5 largest holdings.
For example, the fund increased its stake in Bharat Heavy Electricals (BHEL) by 0.26 percentage points during May, while trimming its exposure to HDFC Bank by 0.12 percentage points. Despite these portfolio adjustments, both stocks continued to remain among the fund’s top 2 holdings.
Similarly, the fund raised its allocation to TD Power Systems, the third-largest holding, by 0.17 percentage points. On the other hand, it reduced its stake in Multi Commodity Exchange of India (MCX) by 0.19 percentage points, although the stock continued to be the fund’s fourth-largest holding.
How much returns you can make from Nippon India Small Cap Fund over the years?
| Time Period | Nippon India Small Cap’s Returns | Invested Amount (Lumpsum) | Total Value |
| 1-Year | 2.04% | ₹1,00,000 | ₹1,02,040 |
| 3-Years | 18.80% | ₹1,00,000 | ₹1,67,781 |
| 5-Years | 20.84% | ₹1,00,000 | ₹2,57,828 |
*Returns as on June 9, 2026, Source: Value Research
If you had invested a lump sum of ₹1 lakh in Nippon India Small Cap Fund 5 years ago, your investment would have grown to around ₹2.58 lakh. This translates into a profit of about ₹1.58 lakh on your initial investment.
The fund’s strong long-term performance highlights the wealth-creation potential of small-cap investing when backed by professional management.
Therefore, analysing the underlying stocks in the portfolio can provide great insights into the sectors and stocks where the fund manager is deploying capital and identifying future growth opportunities.
Disclaimer: This is purely for educational/ informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.