Are Small Cap Funds Offering More Relative Value In A Market That Is Heading For A Record High?

Catch Market Guru with Mihir Vora, Chief Investment Officer, TRUST Mutual Fund, as he decodes the TRUSTMF Small Cap Fund, launched in November 2024. With an AUM of ₹970 crore and an NAV of ₹10.54 per unit, the fund has delivered a 5.4% CAGR since inception. It holds a broad-based portfolio of 65 stocks, offering sectoral and thematic diversification while maintaining agility in stock selection. The top 10 stocks account for 22% of the AUM, while the top 5 comprise 11.7%, reflecting a balanced approach to concentration risk. The portfolio is growth-oriented, with a Price-to-Earnings (P/E) ratio of 35.7 and a Price-to-Book (P/B) ratio of 5.78, indicating a tilt toward quality businesses with high growth potential. Key holdings include MCX, Solar Industries, BSE, PNB Housing Finance, Coforge, GE T&D, Welspun, Radico Khaitan, and Bharat Dynamics (BDL)—reflecting a mix of financials, industrials, consumer, and technology themes.