Tata Small Cap Fund: Portfolio Composition and Investment Approach

The Tata Small Cap Fund is an open-ended equity scheme that seeks long-term capital appreciation by investing at least 65% of its total assets in the equity and equity-related instruments of small-cap companies. 

As of June 30, 2026 , the fund’s top holdings are Kirloskar Pneumatic Company, Usha Martin, IDFC First Bank, Godrej Industries, Sudarshan Chemical Industries, Tega Industries, and more. 

The Tata Small Cap Fund is an open-ended equity scheme predominantly investing in small-cap stocks. As per SEBI regulations, small-cap companies are ranked 251st and beyond in terms of full market capitalisation. 

The investment objective of this scheme is to generate long-term capital appreciation by predominantly investing in equity and equity-related instruments of small-cap companies. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. the scheme does not assure or guarantee any returns.

It may be noted that the risk-o-meter specified above is based on an internal assessment. The same shall be updated as per provision no. 6.16.1.j of SEBI Master Circular on Mutual Fund dated 20.03.2026, on Product labelling in mutual fund schemes on an ongoing basis.

Looking to invest? Read this article to check out its latest portfolio composition (as of June 30th, 2026) and understand its investment approach. 

The Tata Small Cap Fund follows a diversified investment approach and spreads its investments across multiple sectors. As per the “ latest portfolio” report (a part of the scheme documents), dated June 30, 2026, the fund has allocated 93.02% of its assets to equities, with the remaining invested in cash and net current assets. 

For a better understanding, let’s check out its complete equity portfolio composition along with the number of shares held in each company and their corresponding weights (expressed as “% of assets”):

The top 10 equity positions held by Tata Small Cap Fund together account for 36.22% of its net assets. Let’s check them out:

For those unaware, sector allocation shows how a mutual fund distributes its investments across different industries. It helps investors understand:

• Which parts of the economy is the fund most exposed to 

and

• Whether the portfolio is well diversified. 

The table below presents the Tata Small Cap Fund's sector-wise allocation as of June 30, 2026:

The investment objective of the Tata Small Cap Fund is to generate potential long-term capital appreciation by predominantly investing in the equity and equity-related instruments of small-cap companies. 

To manage the portfolio, the scheme may also invest a portion of its assets in companies outside the small-cap segment, debt and money market instruments, and other permitted asset classes in line with the Scheme Information Document (SID).

Under normal market conditions, the scheme follows the indicative asset allocation below:

In addition to the asset allocation, the scheme may invest in the following instruments within the limits prescribed by SEBI and the Scheme Information Document:

So, now you know about the Tata Small Cap Fund's latest portfolio as of June 30, 2026, and its investment approach. To summarise, the Tata Small Cap Fund is an open-ended equity scheme predominantly investing in small-cap stocks 

Its investment objective is to generate potential long-term capital appreciation by primarily investing in the equity and equity-related instruments of small-cap companies. While the scheme mainly invests in small caps, it also has the flexibility to allocate a portion of its assets to other equity segments and permitted asset classes in accordance with the Scheme Information Document (SID). 

Before committing funds, investors may review the SID, Key Information Memorandum (KIM), latest portfolio disclosures, and other scheme documents to determine whether the fund aligns with their investment objectives and risk appetite.

For more information, you can visit www.tatamutualfund.com. The Investor Service Centre of Tata Asset Management Pvt. Ltd. is located at Mulla House, Ground Floor, 51, M.G. Road, Near Flora Fountain, Mumbai – 400 001, Maharashtra. The office hours are Monday to Friday, 9:00 AM to 5:30 PM. For assistance, you can also call (022) 6282 7777 from Monday to Saturday, 9:00 AM to 5:30 PM, or email service@tataamc.com

1. Is there an exit load for the Tata Small Cap Fund?

If the units are redeemed, switched out, or withdrawn through SWP/STP on or before 30 days from the date of allotment, an exit load of 0.50% is applicable. However, no exit load is charged after 30 days from the date of allotment.
 

2. What is the benchmark of the Tata Small Cap Fund?

The benchmark is the Nifty SmallCap 250 TRI (Tier 1) Index. This index tracks the performance of the companies ranked 251st to 500th (in terms of full market capitalisation) from the Nifty 500 universe.
 

3. What investment plans and options are available under the Tata Small Cap Fund?

The scheme is available under the Regular Plan and the Direct Plan. Both plans offer a Growth Option and an Income Distribution cum Capital Withdrawal (IDCW) Option. 

Under the IDCW Option, the available sub-options are “Payout” or “Reinvestment”. 

When submitting the application form, investors should clearly select their preferred plan, option, and IDCW sub-option. If no option is selected, the investment is allotted under the Direct Plan – Growth Option by default. 

Whereas, if the IDCW Option is selected but no sub-option is specified, the default allocation is the IDCW Reinvestment sub-option.