A New Investment Opportunity
– Abakkus Small Cap Fund
Mr. Venkatesan P , Founder, PAISACARE FINANCIAL SERVICES, Chennai
For
investors looking to participate in the growth of small-sized companies in the
Indian equity market, Abakkus Asset Manager LLP
has launched its new NFO – Abakkus Small Cap Fund.
The
New Fund Offer (NFO) is open for subscription from February 26, 2026
to March 12, 2026. This is an open-ended equity scheme that
will predominantly invest in small-cap companies.
Why Consider Small Caps Now?
1.
Price Correction – A Potential Opportunity?
Nearly
50% of the small-cap universe has corrected by more than 40%. This may provide
an opportunity to accumulate fundamentally strong businesses at relatively
attractive valuations.
2. Backbone of India’s Growth
Approximately
40% of India’s GDP is driven by sectors largely led by small and mid-sized
enterprises, highlighting the structural importance of this segment.
3. Emerging Growth Themes
Small-cap
companies play a significant role in emerging sectors such as Defence,
Semiconductors, Renewable Energy, and Biotechnology — industries that are
expected to benefit from India’s long-term growth trajectory.
4. Under-Researched Universe
Out of 874 small-cap companies, 483 are not widely
tracked by research houses. This under-coverage may create opportunities for
generating alpha through deep research and disciplined stock selection.
Investment Objective
The scheme seeks to generate long-term capital
appreciation by investing predominantly in equity and equity-related securities
of small-cap companies.
There is
no guarantee or assurance that the investment objective will be achieved.
Key
Scheme Details
|
Feature |
Details |
|
Scheme Type |
Open-ended equity scheme predominantly investing in
small-cap stocks |
|
Benchmark |
NIFTY SmallCap 250 TRI |
|
Option |
Growth |
|
Minimum SIP |
₹500 (minimum 6 instalments) |
|
Minimum Lump Sum |
₹500 |
|
Exit Load |
Nil up to 10% redemption within 3 months; 1% beyond 10%
within 3 months; Nil after 3 months |
|
Facilities |
SIP / SWP / STP |
Fund Manager – Experience
Matters
Mr. Sanjay Doshi
Head of Investments & Research
CA, MBA (Finance – NMIMS), CFA Charterholder
Over 20 years of experience
Previously associated with:
·
Nippon
Life India AMC
·
Macquarie
Securities
·
J.P.
Morgan
Why Abakkus Small Cap Fund?
Deep
Research, Wide Coverage
A 25+ member investment team conducts in-depth research,
including companies that may be under-researched or overlooked by the broader
market.
The MEETS Framework – A Structured
Investment Approach
M –
Management
·
Quality,
capability, and track record
·
Prudent
capital allocation (maintaining or improving ROE)
·
Fair
treatment of minority shareholders
E –
Earnings
·
Quality
of earnings vs reported numbers
·
Cyclical
vs structural growth
·
Potential
for earnings to double within four years
E –
Events/Trends
·
Temporary
corrections as buying opportunities
·
Sectoral
cycle shifts
·
Emerging
disruptive themes
T –
Timing
·
Is
the current price discounting risks adequately?
·
Mean
reversion opportunities
S –
Structural Strength
·
Size
of the opportunity
·
Competitive
positioning
·
Consistency
in profit growth
Points Investors Should
Consider
·
Small-cap
investments are inherently more volatile.
·
A
long-term horizon of at least 5–7 years is advisable.
·
SIP
investing may help manage volatility through disciplined allocation.
Conclusion
Small-cap companies offer higher growth potential, but
they also come with higher risk. Success in this segment depends on deep
research, disciplined stock selection, and a long-term perspective.
The Abakkus Small Cap Fund aims to integrate these
principles into its investment strategy.
Investors are advised
to carefully read the Scheme Information Document (SID) and Statement of
Additional Information (SAI), and consult their financial advisor before making
any investment decision.
Mr.
Venkatesan P
Founder, PAISACARE FINANCIAL SERVICES,
Chennai
Phone number: 98404 22744
E Mail id: venkat.profit@gmail.com
Web Site: https://paisacare.in
Mr. P.Venkatesan had a 30
years’ experience in Financial Services (Life Insurance, Health Insurance,
Mutual Funds etc.)
Office Address:
Paisacare
Financial services
No
3B 2nd Street, Sivanandha Nagar
Kolathur,
Chennai -600 099
Read articles written by Mr. Mr. P.Venkatesan in Nanayam Vikatan, a leading personal financial management
magazine.
Disclaimer: Mutual Fund investments are subject to market risks,
read all scheme related documents carefully. The past performance of the mutual
funds is not necessarily indicative of future performance of the schemes.