NFO alert! SAMCO Mutual Fund launches small cap fund: Who should invest?

SAMCO Small Cap Fund: SAMCO Asset Management has announced the launch of the SAMCO Small Cap Fund, an open-ended equity scheme that will predominantly invest in small-cap stock companies ranked 251st to 750th by market capitalisation. It aims to capture early-stage growth opportunities in India's expanding market. The new fund offer (NFO) will open for subscription from Friday, November 14, 2025, to Friday, November 28, 2025. 

 

According to SAMCO, the fund is powered by SAMCO’s proprietary CARE Momentum Strategy, which stands for Cross-sectional, Absolute, Revenue, and Earnings Momentum. The model combines quantitative and fundamental factors to identify companies that exhibit superior price and business momentum, aiming to deliver sustainable long-term alpha.

 

SAMCO Small Cap Fund is benchmarked against the Nifty Small cap 250 Total Returns Index (TRI). 

 

According to the Scheme Information Document (SID), during the NFO period, the minimum application amount for a lump sum investment is ₹5,000 and in multiples of ₹1 thereafter. For the Systematic Investment Plan (SIP), investors can start with a minimum of ₹500 per instalment, with at least 12 instalments required.

 

During the ongoing offer period, the minimum investment amount for fresh purchase (lump sum) remains ₹5,000 and in multiples of ₹1 thereafter, while SIP investments start at ₹500 per instalment with a minimum of 12 instalments.

 

Additionally, investors can redeem up to 10 per cent of their units at any time without incurring an exit load. Any redemption exceeding 10 per cent of the units will attract an exit load of 1 per cent if made within the first 12 months from the date of allotment. No exit load will apply to redemptions made after 12 months.

 

Viraj Gandhi, chief executive officer at SAMCO Asset Management, said the momentum strategy has historically demonstrated strong alpha generation, though it tends to be inherently volatile. "Considering these characteristics, investors may allocate around 15 per cent to 20 per cent of their portfolio to momentum-based strategies, provided they have a long-term investment horizon. Over a 4–5 year period, such an approach can help enhance overall portfolio returns while balancing risk and reward effectively," Gandhi said. 

 

Umeshkumar Mehta, Nirali Bhansali, and Dhawal Ghanshyam Dhanani are the designated fund managers for the scheme. 

SAMCO Small Cap Fund: Who should invest?

As per the SID,  the product is suitable for investors seeking long-term capital appreciation, and investing in equity & equity-related securities of small cap companies. However, investors should consult their financial advisors if in doubt about whether the product is suitable for them.

 

According to the riskometer, the principal investor in this scheme will be at very high risk.