FUND PHILOSOPHY*

The fund aims to identify and invest in companies with steady growth prospects, operating in industries with a stable growth visibility over the medium term – 2-4 years. The fund would be willing to pay higher valuation for companies with distinct segment leadership advantages and/or for companies operating in segments which are witnessing a boost of growth due to change in industry dynamics; regulatory changes / geographical shifts. While not eschewing completely, the fund aims to limit exposure to “deep” cyclicals and focus more on companies and sectors with secular growth outlook. Hence, the valuation metrics of the fund – P/E; EV/EBIDTA; EV/Sales may appear to be more expensive than the benchmark.
Consumer facing rather than B to B is another focus area of the fund. The fund aims to ensure participation in non-small caps as a measure of higher liquidity as well addressability for investing in sectors where size brings noticeable advantage – BFSI, for example. The fund aims to hold cash levels of upto 10% across time periods, both as a measure of liquidity as well as to capitalize on opportunistic investing. Lastly, rather than try to outperform the benchmark on the upside, the fund would aim to conserve capital by limiting downside during periods of drawdowns, a dominant (and painful) characteristic of small cap investing.

      OUTLOOK

Three key drivers of Equity markets are 1) Earnings 2) Interest Rates and 3) Valuations.

Earnings - For the first time since the 2008 GFC, India has seen 4 consecutive quarters where BSE200 2-year Forward EPS has been upgraded. Sustained momentum in earnings resulting in a cycle of earnings upgrades can help drives markets higher.

Interest Rates - Interest Rates, both in India and globally are trending upwards on account of higher inflation and faster than expected economic recovery. Higher interest rates are generally negative for Valuations.

Valuation - Indian markets have significantly outperformed global markets since the pandemic bottom. The scope for valuation rerating driven market move is limited.

     FUND FEATURES: (Data as on 31st October'21)

Category: Small Cap Fund
Monthly Avg AUM: Rs 1,466.33 Crores
Inception Date: 25th February 2020
Fund Manager: Mr. Anoop Bhaskar
Benchmark: S&P BSE 250 SmallCap-TRI
Exit Load:
1% if redeemed/switched out within 1 year from the date of allotment
Minimum Investment Amount: Rs100 and in multiples of Rs1 thereafter
SIP Frequency: Monthly
SIP Dates (Monthly): Investor may choose any day of the month except 29th, 30th and 31st as the date of instalment.
Options Available: The Scheme offer IDCW@ Option & Growth Option. IDCW@ Option under each Plan further offers of choice of Payout & Sweep facilities.

^@Income Distribution cum capital withdrawal

PORTFOLIO

(31 October 2021)

     SECTOR ALLOCATION

     RISKOMETER

Scheme risk-o-meter

Benchmark risk-o-meter