Launched in February 2020, this small-cap fund manages Rs 10,244 crore, employing a diversified strategy focused on quality, growth, and reasonable valuation

36.4% CAGR in 5 years - Should you invest in this equity small-cap fund which outperformed its benchmark? It avoids benchmark-centric approaches, holding over 180 stocks to mitigate risk. While its early performance is impressive, sustained consistency is needed to validate its long-term potential

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

BASIC FACTS

DATE OF LAUNCH
25 FEB 2020
CATEGORY
EQUITY
TYPE
SMALL CAP
AUM*
Rs.10,244 crore

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BENCHMARK
BSE 250 SMALLCAP TOTAL
RETURN INDEX

WHAT IT COSTS

NAV**
GROWTH OPTION
Rs.42.7
IDCW
Rs.31.7

MINIMUM INVESTMENT
Rs.1,000

MINIMUM SIP AMOUNT
Rs.100
EXPENSE RATIO# (%)
1.7
EXIT LOAD
1% for redemption within 365 days

*AS ON 30 APR 2025
**AS ON 13 MAY 2025
#AS ON 30 APR 2025

FUND MANAGER

MANISH GUNWANI
2 YEARS, 3 MONTH

Recent portfolio changes

New entrants
Brigade Enterprises, Mastek, PTC India, Zensar Technologies (Mar) Bluspring Enterprises, Central Depository Services (India), Digitide Solutions, Kilburn Engineering, Mahindra Lifespace Developers, Rainbow Children’s Medicare, STL Networks, Suryoday Small Finance Bank (Apr)
Complete exits
E2E Networks (Mar) Amber Enterprises India, Indus Towers, Orient Cement, PTC India, Sai Life Sciences, Thangamayil Jewellery, Torrent Power, Zensar Technologies (Apr)

Should You Buy?

This small cap fund is among the newer offerings in this segment. It focuses on building a diversified portfolio on a 3-pronged stock selection approach of quality, growth and reasonable valuation. The fund predominantly runs with an absolute return thought process rather than a benchmark-centric one. The fund diversifies to the hilt to mitigate risk, with over 180 bets. With tiny individual positions, even the fund’s top 10 stocks constitute less than 20% of the portfolio. In its short running time so far, the fund has built an impressive track record, but much of its sharp outperformance is owing to outsized gains in 2023 and 2024. The fund could be a worthy bet if it can deliver consistently going forward.

This story originally appeared on: India Times - Author:Faqs of Insurances