Abakkus Mutual Fund launches ``Abakkus Small Cap Fund``
Abakkus Mutual Fund announces the launch of its second equity NFO – Abakkus Small Cap Fund, an open-ended equity scheme that will predominantly invest in small cap stocks. The fund opens for subscription on 26th February 2026 and closes on 12th March 2026.
Abakkus Small Cap Fund aims at delivering long-term capital appreciation by investing in a diversified portfolio of small cap companies in India. The fund comes at a time when small-cap equities are offering potentially attractive entry valuations and structural growth opportunities. The asset allocation pattern of the fund will be:
|
Instruments |
Indicative allocations (% of total assets) |
|
|
|
Minimum |
Maximum |
|
Equity and Equity related^ instruments of Small cap companies |
65% |
100% |
|
Equity and related^ instruments of Companies other than Small Cap |
0% |
35% |
|
Debt securities (including securitised debt & debt derivatives) and money market instruments |
0% |
35% |
|
Units issued by InvITs |
0% |
10% |
Notes:
1) ^Equity and Equity related instruments include (but not limited to) convertible debentures, equity warrants, convertible preference shares, equity derivatives and units of ReITs.
2) In terms of clause 2.7.1 of the SEBI Master Circular, “Small Cap” shall consist of 251st company onwards in terms of full market capitalization. Investment universe of “Small Cap” will be as per clause 2.7.1 of SEBI Master Circular and as defined by SEBI/AMFI from time to time shall comprise companies as defined by SEBI from time to time.
The fund’s investment approach will emphasise bottom-up research, strong balance sheets, earnings visibility, and prudent position sizing. The aim is to build a diversified portfolio along with maintaining a sharp focus on liquidity management. For investors with a long-term horizon, the current phase may present a potential opportunity to accumulate quality small-cap businesses at more reasonable valuations.
Mr. Sunil Singhania, Founder, Abakkus Asset Manager Private Limited said, “As a young mutual fund house, we are committed to offering a bouquet of investment products that brings wealth creation opportunities to Indian investors with varied risk appetite. Abakkus Small Cap Fund reflects our commitment to offering solutions that capture structural growth investment opportunities in undiscovered and under-researched areas with a strict risk-reward portfolio management.”
Mr. Vaibhav Chugh, Chief Executive Officer, Abakkus Mutual Fund said, “After receiving a strong reception for our maiden flexi cap fund, objective was to bring an investment fund which may have the potential to provide better risk adjusted returns from a long term perspective. In line with this direction, we bring Abakkus Small Cap Fund for investors to make prudent investments into industries which are majorly available in the small cap category and currently valued with improved risk–reward levels. Our fund will not only be focused with notable allocation to high conviction ideas but also being mindful of concentration risk.”
Mr. Sanjay Doshi, Head of Investments and Research, Abakkus Mutual Fund said, “Following the recent correction and heightened regulatory focus on liquidity and risk disclosures, we believe the market is transitioning from momentum-driven participation to fundamentals-led stock selection. Guided by Abakkus Investment Philosophy, our unique Investment ‘MEETS’ framework, deep research and a well-defined risk management process, we look forward to partner with investors in their disciplined approach in small cap investing.”
Fund Highlights:
* Fund Name: Abakkus Small Cap Fund
·Fund Type: Open-Ended Equity Scheme – Small Cap
·Plan: Regular and Direct
·Benchmark: NIFTY SmallCap 250 TRI
·Investment Minimum: Rs. 500 (thereafter in multiples of Re. 1/-)
·Fund Manager: Mr. Sanjay Doshi – Head of Investments and Research at Abakkus Mutual Fund
·NFO Period: 26th February 2026 to 12th March 2026
·Risk Profile: Very High
Abakkus Small Cap Fund’s portfolio construct: Potential Key Areas of Exposure
|
Sunrise sectors: ·Electronics Manufacturing Services ·Defense and Aerospace value chain companies ·Applied material science / Outsourced Semiconductor Assembly and Test ·Travel, Leisure, and Hospitality ·Health care services and Contract Development and Manufacturing Organization |
Export beneficiaries: ·Niche Engineering companies ·Textiles, Garmenting, Technical textiles and Leather ·Agri and Food processing ·Gems and Jewellery |
|
Value plays with potential for growth revival: ·Construction / Engineering, Procurement, and Construction including Water ·Financials - select non?banking financial company and microfinance institutions ·Building materials |
Special situation: ·Value unlocking through demerger ·Potential inorganic opportunities ·Business cycle turnaround opportunities |
Abakkus Mutual Fund – Investment Framework: The fund house highlights that all funds of Abakkus Mutual Fund will follow an in-house investment framework viz. ‘MEETS’, to evaluate key drivers of long-term value creation. The framework focuses on Management pedigree and track record, Earnings quality and the ability of companies to multiply profits, Events/Trends that affect or disrupt operations, Timing of investment at reasonable pricing and Structural aspects like size of the opportunity and competitive positioning.
The fund’s investment process will comprise of five ‘Ds’. It begins with the ‘Discovery’ of opportunities from a universe of nearly 1,500 stocks, followed by ‘Delving’ into companies using the MEETS framework. The team then ‘Develops’ a comprehensive micro and macro-level view based on competitive advantages and peer analysis, before ‘Detailing’ the investment thesis and portfolio fit. Finally, it ‘Delivers’ a thoughtfully constructed portfolio backed by disciplined execution.
Above views are of the author and not of the website kindly read disclaimer
