NFO Alert: 6 Key Things To Know About Mirae Asset’s New Small Cap Focused Fund

The Indian mutual funds market is seeing increased participation from investors. Data by the Association Of Mutual Funds In India (AMFI) suggests that as of November 2024 as many as 10.23 crore Systematic Investment Plan (SIP) accounts were active and regularly investing in mutual fund schemes.

Keeping in mind the increasing popularity of investing in mutual funds, Mirae Asset Investment Managers (India) Pvt. Ltd has announced the launch of a new small-cap focused scheme. Here’s all you need to know about Mirae Asset’s SmallCap Fund:

Mirae Asset’s SmallCap Fund: Key Dates

The subscription window for Mirae Asset Small Cap Fund will open on January 10. The subscription window will close on January 24. However, investors must note that the scheme will re-open for continuous sale and repurchase on February 03.

Mirae Asset’s SmallCap Fund: Key Dates

The subscription window for Mirae Asset Small Cap Fund will open on January 10. The subscription window will close on January 24. However, investors must note that the scheme will re-open for continuous sale and repurchase on February 03.

Mirae Asset’s SmallCap Fund: Subscription Amount

Investors interested in investing in the scheme can make a minimum initial investment of Rs. 5,000 with subsequent investments being multiples of Re. 1.

Mirae Asset’s SmallCap Fund: Objective

The SmallCap fund aims to provide investors with a chance to invest in the potential growth of fundamentally strong small-cap companies through a research-driven and disciplined investment approach. The fund will be managed by Varun Goel, Senior Fund Manager - Equity, Mirae Asset Investment Managers (India) Pvt. Ltd.

Mirae Asset’s SmallCap Fund: What Does The Scheme Invest In

Mirae Asset Small Cap Fund is benchmarked with the Nifty Small Cap 250 Total Return Index (TRI). The scheme will invest in quality stocks which show sustainable high earnings growth, high capital efficiency, good corporate governance and have low or negligible leverage, according to Mirae Asset’s release. The scheme will invest at least 65 per cent of the fund in small-cap stocks and up to 35 per cent of the fund will be invested in mid-cap and large-cap stocks.

Mirae Asset’s SmallCap Fund: Key Benefits

According to Mirae Asset’s release, the key benefits of the scheme include diversification, high growth potential and a large investable universe. Other benefits include the opportunity to invest in undiscovered opportunities as small-cap companies are relatively undiscovered. Additionally, the scheme can also offer a compounding advantage as long-term investment in small-cap segment may offer meaningful compounded returns.

Mirae Asset’s SmallCap Fund: Who Is It Ideal For

Mirae Asset said in the release that the fund is ideal for investors with a high-risk appetite who are seeking wealth creation through participation in higher-growing segments of the economy.

The financial services company said that the fund caters to young, dynamic investors who aim to explore high-growth opportunities and experienced risk-takers aiming to enhance portfolio returns. Additionally, the scheme also caters to the needs of Systematic Investment Plans (SIP) investors who wish to manage market volatility through disciplined investing.