Groww Mutual Fund Launches Small-Cap Equity Scheme with January NFO
Groww Mutual Fund has launched the Groww Small Cap Fund, an open-ended equity scheme investing exclusively in small-cap stocks. The NFO opens January 8, 2026, and closes January 22, 2026, with a minimum investment of ₹500.00. Managed by Anupam Tiwari, the fund uses a QGaRP framework and benchmarks against the Nifty Smallcap 250 Index – TRI, targeting long-term capital appreciation for investors willing to accept higher volatility.
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Groww Mutual Fund has announced the launch of its new small-cap equity scheme, targeting investors seeking long-term capital appreciation through exposure to small-cap stocks. The Groww Small Cap Fund represents the fund house's strategic entry into the small-cap segment, leveraging structural changes in India's economy to identify growth opportunities.
Fund Structure and Investment Strategy
The Groww Small Cap Fund is structured as an open-ended equity scheme that will invest predominantly in small-cap companies. The fund will maintain no exposure to large-cap stocks, focusing exclusively on the small-cap segment to maximize growth potential.
| Parameter: | Details |
|---|---|
| Fund Type: | Open-ended equity scheme |
| Investment Focus: | Small-cap stocks exclusively |
| Benchmark: | Nifty Smallcap 250 Index – TRI |
| Fund Manager: | Anupam Tiwari |
| Investment Framework: | QGaRP (Quality and Growth at a Reasonable Price) |
The fund will employ a bottom-up stock selection process based on Groww Mutual Fund's QGaRP framework, which focuses on identifying quality companies with strong growth prospects available at reasonable valuations.
NFO Details and Investment Terms
The new fund offer will be open for subscription over a two-week period, providing investors with accessible entry terms and flexible investment options.
| Investment Terms: | Specifications |
|---|---|
| NFO Opening Date: | January 8, 2026 |
| NFO Closing Date: | January 22, 2026 |
| Minimum Investment: | ₹500.00 |
| Exit Load: | 1% if redeemed within one year |
| Exit Load Thereafter: | None |
Market Opportunity and Economic Rationale
According to the fund house, structural changes in India's economy are creating favorable conditions for small-cap companies to expand their operations and access new markets. These changes include:
- Rising infrastructure spending across sectors
- Expanded capital markets providing better access to funding
- Improved access to formal credit for smaller enterprises
- Digital platforms enabling broader market reach
Analysts have observed that parts of the small-cap segment have experienced valuation moderation following periods of underperformance, while company fundamentals continue to show improvement. This combination presents potential opportunities for investors willing to accept higher interim volatility.
Target Investor Profile
The scheme is designed for investors seeking long-term capital appreciation through small-cap stock exposure. The fund house emphasizes that potential investors should be prepared to accept higher interim volatility over a multi-year investment horizon, reflecting the inherent characteristics of small-cap investments.
Historical Stock Returns for Groww
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.11% | +4.59% | +8.61% | +23.60% | +23.60% | +23.60% |
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