Unlock India's Next Growth Gems! SAMCO Launches New Small Cap Fund - Here's Your Investment Window!

Mutual Funds

|

Updated on 13 Nov 2025, 09:39 am

SAMCO Asset Management has announced the launch of its new mutual fund, the SAMCO Small Cap Fund. This open-ended equity scheme is designed to predominantly invest in small-cap companies, specifically those ranked between 251st and 50th by market capitalization, with the goal of capturing early-stage growth opportunities in the Indian market.

The New Fund Offer (NFO) for this scheme will be open for subscription starting Friday, November 14, 2025, and will conclude on Friday, November 28, 2025. The fund is powered by SAMCO's unique proprietary CARE Momentum Strategy, which combines quantitative and fundamental analysis to identify companies exhibiting strong price and business momentum. The objective is to deliver sustainable long-term alpha (excess returns).

The SAMCO Small Cap Fund will be benchmarked against the Nifty Small cap 250 Total Returns Index (TRI). For investors, the minimum lump sum investment during the NFO and ongoing offer period is ₹5,000, with subsequent investments in multiples of ₹1. Systematic Investment Plan (SIP) investors can start with a minimum of ₹500 per installment, requiring at least 12 installments. Investors can redeem up to 10% of their units without an exit load; redemptions exceeding this within 12 months will attract a 1% exit load, while redemptions after 12 months will not have an exit load.

Viraj Gandhi, CEO of SAMCO Asset Management, advised that investors might consider allocating 15% to 20% of their portfolio to momentum-based strategies for long-term horizons (4-5 years) to potentially enhance returns, while noting the inherent volatility. The fund managers for the scheme are Umeshkumar Mehta, Nirali Bhansali, and Dhawal Ghanshyam Dhanani. According to the riskometer, this scheme is classified as 'very high risk'.

Impact This launch provides investors with a new avenue to access India's small-cap growth story, utilizing a momentum-driven strategy. The influx of capital into the small-cap segment could influence valuations, and the fund's performance will be closely watched. The inherent volatility of small-caps and momentum strategies means investors should be prepared for higher risk. Rating: 6/10.