The fund seeks to replicate the performance of the underlying index, which comprises 400 stocks—150 mid-cap and 250 small-cap companies—selected based on free-float market capitalisation, excluding the top 100 large-cap firms. The index structure is designed to maintain an equal 50:50 allocation between mid-cap and small-cap stocks, with periodic rebalancing to retain this proportion.
As a passively managed fund, it will invest in the same securities as the benchmark, aiming to mirror its returns before expenses, subject to tracking error. The total return index (TRI) benchmark reflects both price movement and dividend reinvestment.
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The scheme is positioned as an additional allocation beyond large-cap exposure, providing diversification across a wider set of companies. While mid- and small-cap stocks may offer higher growth potential over longer periods, they are also typically more volatile and sensitive to market cycles.
The fund is available with a minimum investment of ₹100 during the new fund offer period, with units priced at ₹10 each. Post the offer period, subscriptions and redemptions will be available at prevailing net asset value (NAV).
The product has been categorised under the “very high” risk bracket on the risk-o-meter, in line with the risk profile of its benchmark. It is intended for investors seeking long-term capital appreciation and willing to accept higher volatility.
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First Published: Mar 24, 2026 9:39 AM IST
