Mirae Asset launches smallcap fund, targets India's high-growth segment

The scheme will invest in quality stocks that show sustainable high earnings growth, high capital efficiency, good corporate governance and have low or negligible leverage

Mirae Asset Investment Managers (India) Pvt. Ltd. has launched its new Mirae Asset smallcap fund, an open-ended equity scheme focusing predominantly on smallcap stocks. The fund, to be managed by senior Fund Manager Varun Goel, will be benchmarked against the Nifty smallcap 250 Total Return Index (TRI).

 

The New Fund Offer (NFO) opens for subscription on January 10, and closes on January 24, with a minimum initial investment requirement of Rs 5,000. Regular trading will commence on February 3, with subsequent investments accepted in multiples of Re 1.

 

The launch comes at a time when small cap companies have shown significant compounding trends over the past two decades, according to the Nifty smallcap 100 Index factsheet, highlighting the potential for long-term growth in this segment of the market.

 

The fund's strategy involves investing at least 65 per cent of its portfolio in smallcap stocks, with the flexibility to allocate up to 35 per cent in mid and largecap stocks. It will target quality stocks characterised by sustainable high earnings growth, strong capital efficiency, and sound corporate governance practices.

 

The Investment Manager will adopt a bottom-up approach, selecting equity securities on a stock-by-stock basis. The primary objective is to construct a portfolio comprising high-growth companies, consistently representing our most compelling investment opportunities at any given time.

 

“Smallcap investing is where insights meet opportunity. Our new fund reflects Mirae Asset’s philosophy of blending data-driven decision making with disciplined execution to uncover ideas in a segment that continues to play a pivotal role in India’s growth narrative,” said Varun Goel, sr. fund manager - Equity, Mirae Asset Investment Managers (India) Pvt. Ltd.

 

Exit load 

For units allotted (including Switch-ins and STP-ins), an exit load will not be applicable for up to 15 per cent of the units redeemed on or before the completion of 365 days from the date of allotment.

 

However, any redemption exceeding this 15 per cent limit within the first 365 days from the allotment date will be subject to an exit load, as detailed below:

 

For redemptions made within one year (365 days) from the date of allotment, an exit load of 1 per cent of the applicable NAV will be charged.

 

For redemptions made after one year (365 days) from the date of allotment, no exit load will be applicable.

 

For other types of redemptions, such as for investors who have not opted for the Systematic Withdrawal Plan (SWP) under the plan (including Switch-outs and STP-outs), the following conditions will apply:

 

If units are redeemed within one year (365 days) from the date of allotment, an exit load of 1 per cent will be applicable.

 

If units are redeemed after one year (365 days) from the date of allotment, no exit load will be charged.

 

Redemptions will be processed on a First In First Out (FIFO) basis.

 

Who should invest

 

The fund is designed for investors with a high-risk appetite, particularly targeting young, dynamic investors seeking high-growth opportunities and experienced risk-takers looking to enhance portfolio returns. It also caters to Systematic Investment Plans (SIP) investors aiming to manage market volatility through disciplined investing.