Groww launches small cap fund: Investment amount, NFO date, exit load & more

Groww Mutual Fund has announced the launch of the Groww Small Cap Fund, an open-ended equity scheme primarily investing in small-cap companies. The new fund offer (NFO) will open on January 8, 2026 and close on January 22, 2026. The scheme seeks to generate long-term capital appreciation and will use a bottom-up stock selection strategy based on Groww Mutual Fund’s QGaRP framework, focusing on quality and growth at a reasonable price.

The minimum investment amount is ₹500 and investors redeeming within one year will face a 1% exit load, with no exit load after one year. The fund will benchmark its performance against the Nifty Smallcap 250 Index – TRI and will not invest in large-cap stocks.

According to the fund house, structural changes in India’s economy, including rising infrastructure spending, expanded capital markets, improved access to formal credit, and digital platforms, are providing small-cap companies with greater opportunities to scale operations and access new markets.

The scheme will be managed by Anupam Tiwari. It is intended for investors seeking long-term capital appreciation through exposure to small-cap equities and who are prepared to accept higher interim volatility over a multi-year investment horizon.

Analysts have noted that parts of the small-cap segment have seen valuation moderation after periods of underperformance, while company fundamentals continue to improve. The fund’s approach, which emphasises small-cap investment without large-cap exposure, aligns with recent trends in the segment. The minimum investment threshold and exit load terms are set with the aim of attracting investors who have a higher risk appetite and a long-term perspective.