
Launch of Scheme:
Groww Mutual Fund has launched a new open‑ended equity mutual fund named the Groww Small Cap Fund, specifically designed to invest primarily in small‑cap stocks.
Subscription Period:
The New Fund Offer (NFO) for the scheme opened on January 8, 2026 and is scheduled to close on January 22, 2026.
Investment Objective:
The fund’s core objective is to achieve long‑term capital appreciation by allocating most of its portfolio to high‑quality, scalable small‑cap companies.
Target Companies and Market Exposure:
The scheme focuses on smaller companies that may not be represented in large‑cap or mid‑cap indices, giving investors exposure to a broader and potentially high‑growth segment of the market.
Valuation and Opportunity:
The fund house noted that parts of the small‑cap segment have seen valuation moderation after underperformance, while underlying business fundamentals have improved, which could present disciplined stock selection opportunities.
Minimum Investment and Load:
Investors can participate in the NFO with a minimum investment of ₹500, and the scheme applies an exit load of 1 percent for redemptions within the first year.
Benchmark:
The performance of the Groww Small Cap Fund will be benchmarked against the Nifty Smallcap 250 Total Return Index (TRI).
Investment Strategy:
The fund will adopt a bottom‑up stock selection process, structured around Groww Mutual Fund’s proprietary QGaRP framework (Quality and Growth at a Reasonable Price), focusing on fundamental quality and growth potential.
Fund Management:
The scheme will be managed by Anupam Tiwari, who will direct the investment decisions and portfolio construction.
Suitability:
The fund is aimed at investors looking for long‑term capital appreciation through small‑cap equities and willing to tolerate the higher short‑term volatility often associated with smaller companies.
Comments