ITI Small Cap Fund vs SBI Nifty Smallcap 250 Index Fund
Small Cap Fund · Direct Plan – Growth · Compared on official AMFI NAV data · NAVs as of 14-Aug-2026
| Metric | ITI Small Cap Fund | SBI Nifty Smallcap 250 Index Fund |
|---|---|---|
| Latest NAV | ₹38.07 | ₹19.95 |
| 1-Year Return | +17.38% | +5.35% |
| 3-Year Return (CAGR) | +27.85% | +17.97% |
| 5-Year Return (CAGR) | N/A | N/A |
| Volatility (1Y, annualised) | 17.2% | 17.1% |
| Max Drawdown | −24.2% | −26.2% |
| Fund House | ITI Mutual Fund | SBI Mutual Fund |
Growth of ₹10,000
If you had invested ₹10,000 in each fund
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ITI Small Cap Fund vs SBI Nifty Smallcap 250 Index Fund: which is better?
ITI Small Cap Fund is an actively managed small cap fund scheme: a fund manager picks and weights the holdings, and charges a higher expense ratio for doing so. SBI Nifty Smallcap 250 Index Fund does the opposite — it simply tracks NIFTY Smallcap 250 and charges very little. This page settles the question that actually matters before you invest in either: over the periods we can measure, did the active fund earn its fee?
Both sides are compared on their official AMFI NAV history (direct plan, growth option) — the same daily data the fund houses publish. Using the index fund rather than the raw NIFTY Smallcap 250 level is deliberate: a tracking fund's NAV already includes its expense ratio and tracking error, so this is the return an investor could genuinely have captured, not a theoretical index number nobody can buy.
Over the 3-year period ITI Small Cap Fund beat its benchmark tracker: +27.85% annualised against +17.97% for SBI Nifty Smallcap 250 Index Fund — an outperformance of about 9.88 percentage points a year. That is the active manager genuinely adding value over this window, after the fund's own costs.
In rupee terms, ₹1,00,000 invested 3 years ago would have become about ₹2,08,978 in ITI Small Cap Fund and ₹1,64,176 in SBI Nifty Smallcap 250 Index Fund — a difference of roughly ₹44,803 on a ₹1,00,000 investment. Scale that to the size of your actual SIP or lumpsum to see what the choice is worth to you.
The outperformance is consistent rather than a one-off: ITI Small Cap Fund is ahead on every horizon we can measure (3-year: +27.85% vs +17.97% · 1-year: +17.38% vs +5.35%). Consistency across multiple periods is a stronger signal than a single good year, though it still does not guarantee the pattern continues.
On risk the two have behaved similarly over the trailing year — annualised volatility of 17.2% for ITI Small Cap Fund against 17.1% for SBI Nifty Smallcap 250 Index Fund. On worst falls, the deepest drawdown in our stored history is −24.2% for ITI Small Cap Fund against −26.2% for SBI Nifty Smallcap 250 Index Fund.
One factor sits outside the returns above: cost. An index fund tracking NIFTY Smallcap 250 typically charges a fraction of what an actively managed small cap fund scheme does, and that difference is deducted every year whether the manager performs or not. Over a long holding period a persistent fee gap compounds into a meaningful sum, which is why an active fund needs to beat its benchmark by more than its extra cost simply to break even with the tracker.
Which to choose comes down to what you believe about the next decade rather than the last one. Index funds guarantee you the benchmark's return minus a small fee; active funds offer the possibility of more, with the risk of less and a higher certain cost. Use the growth chart above to see how each behaved through actual market cycles, and consider a SEBI-registered adviser before switching. This comparison is informational and is not investment advice.
Key takeaways
- ITI Small Cap Fund outperformed the index by ~9.88 pp a year over 3 year.
- On ₹1,00,000 over 3 years, the gap is worth about ₹44,803.
- Ahead of the index on all 2 measurable horizons.
Frequently Asked Questions
Has ITI Small Cap Fund beaten NIFTY Smallcap 250?
Over the past 3 year period, yes — ITI Small Cap Fund returned +27.85% annualised against +17.97% for SBI Nifty Smallcap 250 Index Fund, which tracks NIFTY Smallcap 250. That is roughly 9.88 percentage points a year of outperformance. Past performance does not guarantee future results, and a fund that leads over one period often lags over the next.
Is ITI Small Cap Fund consistently better than an index fund?
On the horizons we can measure it has been ahead each time (3-year: +27.85% vs +17.97% · 1-year: +17.38% vs +5.35%). That consistency is meaningful, but index funds win on cost every single year, so an active fund has to keep outperforming to stay worth it.
Is ITI Small Cap Fund riskier than SBI Nifty Smallcap 250 Index Fund?
Over the trailing year, ITI Small Cap Fund shows annualised volatility of 17.2% against 17.1% for SBI Nifty Smallcap 250 Index Fund. On worst falls, the deepest drawdown in our stored history is −24.2% for ITI Small Cap Fund against −26.2% for SBI Nifty Smallcap 250 Index Fund. Volatility and drawdown describe how each has behaved in the past, not how safe either is in future — both carry the full market risk of small cap fund investing.
Should I switch from ITI Small Cap Fund to an index fund?
That depends on more than past returns — switching may trigger capital gains tax and any applicable exit load, which can outweigh a small performance gap. Check your holding period and the tax implications before moving. The figures here tell you how the two have performed; they cannot tell you what your after-tax outcome of switching would be.
Can I hold both ITI Small Cap Fund and SBI Nifty Smallcap 250 Index Fund?
Yes, and many investors do — a low-cost tracker as the core holding with an active fund as a satellite. Be aware that an active small cap fund scheme will hold many of the same companies as NIFTY Smallcap 250, so the overlap means less diversification than owning two funds might suggest.
More Small Cap Fund comparisons
Returns, volatility and drawdowns are computed from official AMFI NAV history for direct-growth plans and may differ slightly from fund-house factsheets due to date conventions. Mutual fund investments are subject to market risks. This comparison is for informational purposes only — not investment advice.