India's biggest small-cap mutual fund adds 8 stocks, exits 4 in October 2026; ITC tops fresh buys; expense ratio rises
India's biggest active small-cap mutual fund by assets under management (AUM), Nippon India Small Cap Fund, managed ₹76,903 crore as of October 2026. The fund added eight new stocks and completely exited four others, while also reshuffling its existing holdings.
The fund has 260 stocks in its portfolio. The fresh additions include large-cap stocks such as ITC and Bank of Baroda. Here's what investors need to know about the changes in the fund's portfolio.
The fund added eight new stocks to its portfolio in October. ITC topped the list with 2.15 crore shares, followed by Bank of Baroda, with around 82.21 lakh shares.
Other notable additions included Aequs, with 36.38 lakh shares, and Sahajanand Medical Technologies, with 14.37 lakh shares.
| Stocks bought | October quantity (lakh shares) |
| ITC | 215.00 |
| Bank of Baroda | 82.21 |
| Aequs | 36.38 |
| Sahajanand Medical Technologies | 14.37 |
| SFC Environmental Technologies | 12.72 |
| Bonfiglioli Transmissions | 7.31 |
| EAAA India Alternatives | 4.70 |
| Star Health and Allied Insurance Company | 2.00 |
*Source: Fund Monthly Disclosures
Nippon India Small Cap Fund completely exited four stocks in October. These included Fineotex Chemical, Jio Financial Services, Vedant Fashions, and Asian Paints.
| Stocks sold | September quantity (lakh shares) |
| Fineotex Chemical | 107.46 |
| Jio Financial Services | 69.76 |
| Vedant Fashions | 12.35 |
| Asian Paints | 3.10 |
Apart from fresh purchases and complete exits, the fund also adjusted its existing stock positions in October.
The fund increased its holdings in 21 stocks. These included Swiggy, Tata Steel and Kotak Mahindra Bank, with the number of shares added in each at 50 lakh.
On the other hand, the fund reduced its holdings in 11 stocks. State Bank of India, Allied Blenders and Distillers, and UTI Asset Management Company were among the stocks where its exposure declined.
As per the October 2026 factsheet, HDFC Bank was the fund's largest holding, accounting for 2.02% of net assets. It recorded an increase in weightage of 0.27 percentage points. Meanwhile, TD Power Systems and Apar Industries saw the biggest reductions of 0.09 percentage points each.
| Top 10 stocks | Portfolio weightage (Oct 2026) | Change in weightage |
| HDFC Bank | 2.02% | +0.27% |
| TD Power Systems | 1.79% | -0.09% |
| Bharat Heavy Electricals | 1.74% | -0.03% |
| Apar Industries | 1.65% | -0.09% |
| Karur Vysya Bank | 1.48% | +0.20% |
| Sai Life Sciences | 1.33% | +0.09% |
| Acme Solar Holdings | 1.29% | -0.04% |
| Multi Commodity Exchange of India | 1.16% | +0.02% |
| Sundram Fasteners | 1.15% | -0.05% |
| Elantas Beck India | 1.13% | -0.03% |
*Source: Fund Monthly Disclosures; Change in weightage from Sep to Oct 2026
According to the fund factsheet, Nippon India Small Cap Fund's expense ratio increased marginally in October from September 2026.
For the regular plan, the expense ratio rose from 1.32% to 1.33%. For the direct plan, it increased from 0.60% to 0.61%.
The fund's benchmark is the Nifty Smallcap 250 TRI. Its performance across different periods is as follows as of 31 October 2026:
- 1-year return: 0.28% against the benchmark return of -2.61%.
- 3-year return: 12.95% against the benchmark return of 12.39%.
- 5-year return: 17.06% against the benchmark return of 13.10%.
Nippon India Small Cap Fund outperformed its benchmark over the one-, three-, and five-year periods.
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.
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HomeMoneyPersonal FinanceIndia's biggest small-cap mutual fund adds 8 stocks, exits 4 in October 2026; ITC tops fresh buys; expense ratio rises
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