NFO Update: Groww Mutual Fund announces rollout of smallcap fund

Groww Mutual Fund has launched the Groww Small Cap Fund, an open-ended equity scheme that will primarily invest in smallcap stocks. The new fund offer (NFO) opens for subscription on January 8 and closes on January 22.

The investment scheme seeks to generate long-term capital appreciation by investing in high-quality, scalable small-cap companies through a disciplined bottom-up investment approach, guided by Groww Mutual Fund’s QGaRP framework– Quality and Growth at a Reasonable Price, the fund house said in a statement.

India’s economy is undergoing a broad-based transformation, with strengthening physical, financial, and technological infrastructure reshaping opportunities for businesses across the size spectrum.


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With infrastructure investment rising, capital markets deepening, access to formal credit improving, and digital platforms scaling nationwide, the traditional barriers for smaller companies are steadily diminishing. As a result, more small businesses are now equipped to grow faster, reach new markets, and compete more effectively, the statement further added.

Groww Small Cap Fund follows a true-to-label mandate, investing predominantly in smallcap stocks, with zero largecap exposure. The scheme is purely bottom-up in nature, avoiding macro-led or thematic calls, and focuses on identifying businesses with strong fundamentals, sustainable growth drivers, and reasonable valuations.

The Groww Small Cap Fund may be considered by investors seeking long-term capital appreciation through a disciplined, true-to-label smallcap strategy. It may suit those with a multi-year investment horizon who are comfortable with higher interim volatility and wish to complement existing large and midcap allocations with selective exposure to India’s smallcap universe, the fund house said.

The scheme will be benchmarked to the Nifty Smallcap 250 Index – TRI and managed by Anupam Tiwari. Investors can enter the fund with a minimum investment of Rs 500, with subsequent investments permitted in multiples of Re 1.

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An exit load of 1% will apply if units are redeemed within one year from the date of allotment; no exit load will be charged thereafter.