SAMCO MF launches small cap fund: All you need to know

SAMCO Asset Management Private Limited has launch the SAMCO Small Cap Fund, India’s first momentum-based small-cap fund designed to identify and invest in emerging businesses demonstrating strong revenue, earnings and price momentum. The New Fund Offer (NFO) will open for subscription from November 14, 2025, to November 28, 2025

India’s small-cap segment, with a combined market capitalisation above ₹62 lakh crore, is witnessing energetic growth, reflecting dynamic entrepreneurial ventures. SAMCO’s new small-cap momentum fund seeks to capture these fast-emerging opportunities, leveraging quantitative signals and fundamental checks to identify tomorrow’s potential leaders. Such a disciplined approach aims to harness early-stage growth. While the fund does not guarantee returns, it aligns with India’s growth story, particularly as smaller capitalisation tiers scale rapidly. Investors should still evaluate personal risk appetites.

The SAMCO Small Cap Fund invests primarily in small-cap equities from ranks 251st to 750th by market capitalisation. It applies a ‘C.A.R.E. Momentum Strategy’ (Cross-sectional, Absolute, Revenue, Earnings), combining quantitative metrics with fundamental checks. Market data reveals the Nifty Smallcap 250 TRI has returned 16.05% CAGR since inception, while the Nifty Small Cap 250 Momentum Quality 100 TRI has delivered 22.03%.

Viraj Gandhi, CEO of 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 15–20% 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.”