New funds: Wealth Company launches small-cap equity NFO, 360 ONE introduces dynamic allocator Long-Short Fund

India’s mutual fund industry is witnessing fresh product launches as asset managers look to tap evolving investor demand for differentiated strategies. The Wealth Company Mutual Fund and 360 ONE Mutual Fund have announced two new offerings — a small-cap equity scheme and a specialised investment strategy with dynamic asset allocation — aimed at capturing long-term growth opportunities while addressing varying investor risk appetites.

Wealth Company Small Cap Fund

The Wealth Company Mutual Fund, the asset management arm of the Pantomath Group, has launched The Wealth Company Small Cap Fund, an open-ended equity scheme that will predominantly invest in small-cap stocks. The New Fund Offer (NFO) opened on March 5, 2026, and will close on March 18, 2026.

The scheme will track the NIFTY SmallCap 250 TRI as its benchmark and will maintain a minimum allocation of 65% of its assets in small-cap companies. The fund carries a “very high” risk rating, reflecting the volatility typically associated with small-cap investments.

The fund will be managed by Aparna Shanker, Chief Investment Officer – Equity, who brings over three decades of experience in equity investing, including stints at SBI Mutual Fund and UTI Mutual Fund.

According to the fund house, the strategy will focus on identifying emerging companies with strong growth potential early in their lifecycle. The investment approach combines institutional-grade research, private-equity style due diligence and active monitoring to build a high-conviction portfolio.

Madhu Lunawat, Founder and Managing Director of The Wealth Company Mutual Fund, said small-cap investing involves identifying tomorrow’s leaders early in their growth journey while maintaining disciplined stock selection and governance standards.

The investment process will include detailed evaluation of promoter quality, governance practices and succession planning, along with forensic and legal diligence to detect early warning signals. The fund house also plans to use proprietary scoring frameworks combining fundamentals, growth drivers and quantitative indicators such as earnings momentum and volatility to identify potential investment opportunities.

DynaSIF Active Asset Allocator Long-Short Fund

Meanwhile, 360 ONE Mutual Fund has launched the DynaSIF Active Asset Allocator Long-Short Fund, a specialised investment strategy designed to deliver long-term growth and income while aiming to manage downside risks through dynamic allocation.

The NFO will open on March 6, 2026, and close on March 20, 2026.

The fund will invest across multiple asset classes including equities, debt instruments, commodities, InvITs and derivatives, enabling the portfolio to adapt to changing market conditions.

Its benchmark will be a blended index consisting of 25% BSE Sensex TRI, 60% CRISIL Short Term Bond Fund Index and 15% iCOMDEX Composite Index.

The strategy will employ long-short equity positions, hedging techniques and dynamic asset allocation to manage risk and reduce market sensitivity. The portfolio will be actively adjusted based on macroeconomic developments, liquidity conditions and volatility regimes.

Raghav Iyengar, CEO of 360 ONE Asset Management Ltd, said changing market dynamics and faster interest-rate cycles are pushing investors to explore more adaptive portfolio strategies beyond traditional asset allocation frameworks.

The fund will be managed by Harsh Agarwal, with Milan Mody handling the debt portion and Rahul Khetawat managing commodity exposures.

The minimum investment for the strategy during the NFO period and thereafter is ₹10 lakh, indicating that the product is aimed primarily at investors seeking specialised investment strategies.

New strategies for evolving markets

The two launches highlight how asset managers are introducing specialised products to meet evolving investor preferences. While the Wealth Company’s small-cap fund targets high-growth companies in the emerging segment of the equity market, 360 ONE’s strategy focuses on multi-asset diversification and risk-managed returns.

With market volatility and macroeconomic uncertainty shaping investment decisions, such strategies are increasingly being positioned as tools to help investors pursue long-term capital appreciation while managing portfolio risks.