Mirae Asset Small Cap Fund NFO: A New Opportunity for Growth Investors


Mirae Asset Mutual Fund has introduced its Small Cap Fund NFO (New Fund Offer), providing investors a chance to explore the potential of small-cap companies. This fund targets smaller businesses that are in the growth phase, offering a promising opportunity for substantial returns in the long term.

Here’s a detailed look at the Mirae Asset Small Cap Fund, its key features, and why it could be a beneficial addition to your investment portfolio.

NFO Highlights

  • Scheme Name: Mirae Asset Small Cap Fund
  • Category: Small Cap Fund
  • NFO Opening Date: January 3, 2025
  • NFO Closing Date: January 17, 2025
  • Minimum Investment Amount: ₹5,000 and multiples of ₹1 thereafter
  • Benchmark Index: Nifty Smallcap 250 TRI (Total Return Index)
  • Fund Managers: Led by experienced investment professionals, including Neelesh Surana.

Investment Objective

The Mirae Asset Small Cap Fund aims to achieve long-term capital growth by investing primarily in a diversified portfolio of small-cap stocks. The fund focuses on identifying companies with solid business fundamentals, scalable models, and effective management, aiming to benefit from their long-term growth potential.

Why Consider Small Cap Funds?

Small-cap companies typically rank beyond the top 250 in terms of market capitalization. These businesses often carry higher risks but offer significant growth potential as they mature. Some reasons to consider this fund include:

  1. Higher Growth Potential: Small-cap companies, being in their developmental stages, can deliver exceptional returns as they expand.
  2. Under-Researched Stocks: These companies are often overlooked, creating opportunities for skilled fund managers to discover undervalued stocks.
  3. Diversification: Investing in small-cap funds adds a unique dimension to your portfolio by exposing you to high-growth market segments.

Benefits of the Mirae Asset Small Cap Fund

  1. Professional Management: Mirae Asset is known for its meticulous research and disciplined investment strategies, which are integral to this fund.
  2. Potential for Wealth Creation: By targeting small companies poised for growth, this fund aims to deliver long-term capital appreciation.
  3. Broad Sector Exposure: The fund plans to invest across diverse industries, ensuring balanced risk and growth opportunities.
  4. SIP Option: Investors can benefit from disciplined investments through Systematic Investment Plans after the NFO period.

Potential Risks

  1. High Market Volatility: Small-cap stocks are generally more sensitive to market fluctuations than larger counterparts, making the fund more volatile.
  2. Liquidity Issues: These companies may have lower trading volumes, potentially impacting liquidity.
  3. Economic Dependence: Small-cap stocks are often more vulnerable to economic shifts and disruptions.

Who Should Consider This Fund?

This fund is well-suited for:

  • Investors with a long-term horizon who are willing to wait for growth opportunities to materialize.
  • Those comfortable with high-risk, high-reward investments.
  • Individuals looking to diversify their existing portfolio by adding small-cap exposure.
  • Investors aiming for a minimum 5-10 year investment period.

Investment Approach

The Mirae Asset Small Cap Fund will focus primarily on companies outside the top 250 in terms of market capitalization. To ensure stability, a small portion may be allocated to mid and large-cap companies or debt instruments.

How to Invest

You can invest in this NFO through the following methods:

  1. Online Platforms: Apply via the Mirae Asset website or any authorized mutual fund distributor’s online portal.
  2. Offline Applications: Visit Mirae Asset branches or agents to submit your application.
  3. Bank Services: Several banks provide mutual fund investment services.
  4. Financial Advisors: Consult with your advisor to align this investment with your financial goals.

Final Thoughts

The Mirae Asset Small Cap Fund NFO offers a compelling opportunity for investors who want to participate in the growth story of small-cap companies. While the fund comes with higher risks, its long-term potential makes it an appealing choice for growth-oriented investors.

As with all investments, consider your financial goals, risk tolerance, and investment horizon before committing. Seeking professional advice can help ensure you make informed decisions aligned with your financial objectives.

Disclaimer: Mutual fund investments are subject to market risks. Please read all related documents carefully before investing. This article is for informational purposes and should not be considered financial advice.

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