Groww Mutual Fund launches small-cap equity scheme; NFO opens January 8

About the Groww Small Cap Fund

Groww Mutual Fund has introduced the Groww Small Cap Fund, an equity-oriented scheme that will invest predominantly in small-cap stocks, in line with SEBI’s small-cap fund definition.

The scheme will allocate a minimum of 65% of its portfolio to small-cap companies, may take selective exposure to mid-cap stocks, and does not intend to invest in large-cap stocks.

Investment approach

The fund seeks to generate long-term capital appreciation through a bottom-up stock selection strategy, guided by Groww Mutual Fund’s QGaRP framework (Quality and Growth at a Reasonable Price).

The approach focuses on identifying businesses with:

• Strong fundamentals
• Scalable business models
• Sustainable growth drivers
• Reasonable valuations

The scheme will be benchmarked against the Nifty Smallcap 250 Index – TRI.

Why small caps are in focus

India’s economy is undergoing a broad-based transformation supported by rising infrastructure spending, deeper capital markets, improving access to formal credit and the rapid expansion of digital platforms.

These structural shifts are reducing traditional barriers for smaller companies, enabling them to scale faster, access new markets and compete more effectively.

Market participants have also pointed out that valuations in parts of the small-cap segment have moderated, even as company fundamentals continue to improve.

Who should consider this fund?

The Groww Small Cap Fund may be suitable for investors who:

• Seek long-term capital appreciation
• Have a multi-year investment horizon
• Are comfortable with higher interim volatility
• Want to complement existing large- or mid-cap exposure with small-cap investments

The fund house has clarified that small-cap investing can involve higher short-term volatility and is best suited for investors with a long-term perspective.

About the fund manager

The scheme will be managed by Anupam Tiwari, a Chartered Accountant with nearly two decades of experience in Indian equities. He has previously worked with leading asset management firms and is responsible for equity investments at Groww Mutual Fund.

Key NFO details

• NFO period: January 8 to January 22, 2026
• Fund manager: Anupam Tiwari
• Benchmark: Nifty Smallcap 250 Index – TRI
• Minimum investment: ₹500 (additional investments in multiples of ₹1)
• Exit load: 1% if redeemed within one year from the date of allotment; nil thereafter

Bottom line

With a clear small-cap mandate, a disciplined QGaRP framework and a low entry threshold, the Groww Small Cap Fund offers investors a structured way to participate in India’s evolving small-cap opportunity-provided they are prepared for higher volatility and take a long-term view.

To Apply Click Here!