Helios
Mutual Fund Launches Helios India Small Cap Fund
Capturing
India’s next phase of growth through emerging small-cap businesses
Mumbai, November 6, 2025: Helios Mutual Fund today
announced the launch of the Helios India Small Cap Fund, an
open-ended equity scheme investing predominantly in small-cap companies. The
New Fund Offer (NFO) opens on November 6, 2025, and closes on November
20, 2025. The fund will be benchmarked against the Nifty Small Cap
250 TRI and follows Helios’ proven research-driven, conviction-based
investment process.
Mr
Dinshaw Irani, CEO & MD, Helios India, said:
“The equity markets have been resilient in absorbing
negative news flows and incessant FPI selling due to the solid domestic flows.
We believe that the worst of the new flows is over, and one can look forward to
positive news flows from here on. Thus, we expect the equity markets to react
positively going forward and expect the FPIs to start trickling back in.
India’s macro backdrop stands out in the EM universe, supported by GDP growth,
benign inflation and a prudent fiscal-monetary stance. The combined efforts of
the government and the RBI have helped in improving the consumer sentiment by
increasing liquidity, reducing interest rates, increasing savings and reducing
prices.
Equity valuations have moderated while earnings revisions
are stabilising, making India’s entry point more attractive for global
allocators.
Foreign Portfolio Investors (FPIs) remain nearly three
percentage points underweight on India relative to its MSCI Emerging Markets
Index weight, the deepest underweight since 2009. India’s underperformance vis-Ã -vis
the MSCI EM index has touched a historic high. Historically, such extremes have
preceded strong inflows as fundamentals strengthen. (Source: Jefferies)
As global rates peak and the US dollar softens,
emerging-market flows are expected to revive, with India positioned as the most
resilient growth market compared with North Asia’s cyclical slowdown. With
large-caps appearing relatively expensive on a one-year forward P/E-to-growth
basis, small-caps offer better relative value. Though large caps look 15-20%
cheaper on PER basis but if earnings CAGR is considered, the small caps look
attractive (PE/G basis, internal research & Jeffries )
Small-cap businesses are deeply linked to India’s capex,
manufacturing, and consumption cycles, offering the purest play on domestic
economic expansion historically.
Incremental India flows historically cascade into this segment as
conviction builds.
During periods of renewed liquidity and FII inflows,
small-caps have historically outperformed disproportionately thanks to higher
operational leverage and earnings sensitivity.
Once macro confidence and earnings visibility broaden,
small-caps typically emerge as the next leg of market re-rating.
Mr. Deviprasad Nair, Business Head - Helios
India, added:
“India’s small-cap universe offers investors a chance to
participate in early-stage businesses positioned for long-term growth. Many of
these firms are under-researched yet sit at the intersection of innovation,
domestic consumption, and manufacturing expansion. With disciplined research
and risk management, we believe this space can offer compelling opportunities
for long-term investors.”
India’s expanding MSME ecosystem is a major growth enabler
for the small-cap segment. As of August 2025, IBEF reports that more than 6.4
crore MSMEs are employing close to 27 crore people nationwide, reflecting
deepening entrepreneurial activity. Rising digital penetration across Tier-2
and Tier-3 cities has democratised access to markets and customers, further
empowering small businesses.
Key themes such as healthcare, chemicals, capital goods,
and consumer services — which have limited representation in large-cap indices
— find broader exposure in the small-cap space. These niche business clusters
could benefit disproportionately from India’s capex and consumption cycles.
Fund Snapshot
- NFO Period: November
6 – November 20, 2025
- Benchmark: Nifty
Small Cap 250 TRI
- Minimum Application: ₹
5,000 (and in multiples of ₹ 1 thereafter)
- Minimum Additional Purchase: ₹
1,000 (and in multiples of ₹ 1 thereafter)
- Type: Active,
open-ended equity scheme investing predominantly in small-cap companies
Mutual Fund investments are
subject to market risks, read all scheme related documents carefully.
