NFO Alert: Mirae Asset Mutual Fund launches small cap fund

Mirae Asset Mutual Fund has announced the launch of Mirae Asset Small Cap Fund, an open-ended equity scheme predominantly investing in small cap stocks.

The new fund offer or NFO of the scheme will open for subscription on January 10 and will close on January 24. The scheme will reopen for continuous sale and repurchase on February 3.

The investment objective of the scheme is to generate capital appreciation by investing predominantly in small cap stocks. From time to time, the fund manager will also seek participation in other equity and equity related securities to achieve optimal portfolio construction.


The small cap fund will be benchmarked against Nifty Small Cap 250 Total Return Index and will be managed by Varun Goel and Siddharth Srivastava.

For investors who have opted for SWP under the plan:

a) 15% of the units allotted (including Switch-in/STP - in) on or before completion of 365 days from the date of allotment of units, the exit load will be nil.

b) Any redemption in excess of such limits in the first 365 days from the date of allotment shall be subject to the following exit load: (Redemption of units would be done on First In First Out Basis (FIFO): - If redeemed within 1 year (365 days) from the date of allotment, an exit load of 1% of the applicable NAV. If redeemed after 1 year (365 days) from the date of allotment, the exit load will be nil.

For other redemptions: For Investors who have not opted for SWP under the plan (including Switch out, STP out): -If redeemed within 1 year (365 days) from the date of allotment, an exit load of 1% will be applicable. If redeemed after 1 year (365 days) from the date of allotment, the exit load will be nil.

The minimum investment amount will be of Rs 5,000 and in multiples of Re 1 thereafter. For investments through SIP, the investment amount will be Rs 99 and in multiples of Re 1 thereafter.

The scheme will allocate 65-100% in equity and equity related securities of smallcap companies, 0-35% in equity and equity related securities of other than smallcap companies, 0-35% in debt and money market instruments, 0-35% in overseas mutual funds schemes/ ETFs/foreign securities, and 0-10% in units issued by REITs and InvITs.

The Investment Manager will select equity securities on a bottom–up, stock–by–stock basis. The focus would be to build a portfolio of strong growth companies, reflecting our most attractive investment ideas at all points of time.

The universe of stocks will comprise majorly of companies having robust business models, enjoying sustainable competitive advantages as compared to their competitors and having high return ratios.