Portfolio Shake-Up! Nippon India Small Cap Fund Drops Big Names-What’s Next for Investors?

Image Source: ET Now Swadesh

Nippon India Small Cap Fund, the country’s largest small-cap mutual fund by assets, executed a significant portfolio reshuffle in April 2025, fully exiting five stocks-including IndusInd Bank and Adani Wilmar-in a move that signals a sharpened focus on new growth opportunities.

Key Highlights:

Complete Exits: The fund sold its entire holdings in IndusInd Bank (about 15 lakh shares), Adani Wilmar (2.24 crore shares), as well as Affle (India), Dalmia Bharat, and Western Carriers India. This marks a decisive shift away from these counters, possibly reflecting changing sectoral outlooks or profit booking.
Fresh Additions: In parallel, the fund added four new names to its portfolio: Affle 3i, AWL Agri Business, Clean Science and Technology, and Kajaria Ceramics. Notably, it acquired 2.24 crore shares of AWL Agri Business and significant stakes in the other newcomers.
Increased Bets: The fund ramped up exposure in 20 stocks, including Ambuja Cements, Asian Paints, Axis Bank, Can Fin Homes, Dr. Reddy's Laboratories, HUL, Pfizer, and Whirlpool of India. Delhivery India saw a substantial increase, with the fund now holding 53.67 lakh shares, up from 21.28 lakh in March.
Prudent Reductions: Exposure was trimmed in nine stocks, such as Fusion Finance, Paradeep Phosphates, and Gujarat Fluorochemicals, as part of ongoing risk management.
Portfolio Snapshot: As of April 2025, the fund held 228 stocks, slightly down from 229 in March, with a diversified allocation across small, mid, and large-cap names. The fund’s process-oriented strategy and focus on quality management and rational valuations remain central to its investment approach.

This active rebalancing underscores Nippon India Small Cap Fund’s commitment to capturing emerging opportunities while maintaining robust risk controls in a dynamic market environment.

Sources: Economic Times, Moneycontrol, FundzBazar