New Delhi: SAMCO Asset Management Private Limited has announced the launch of the SAMCO Small Cap Fund, India’s first momentum-based small-cap mutual fund designed to capture early-stage growth opportunities in high-performing emerging businesses. The New Fund Offer (NFO) will open for subscription on November 14, 2025, and close on November 28, 2025.
The open-ended equity scheme will invest in small-cap companies ranked between 251st and 750th by market capitalization, leveraging SAMCO’s proprietary C.A.R.E. Momentum Strategy — a multi-factor model that integrates Cross-sectional, Absolute, Revenue, and Earnings Momentum. The strategy combines quantitative analytics with fundamental research to identify businesses demonstrating strong price and operational momentum, aiming to deliver sustainable long-term alpha.
India’s small-cap segment, with a combined market capitalization exceeding ₹62 lakh crore, has emerged as a powerful engine for wealth creation. Historical data shows that the Nifty Smallcap 250 TRI has delivered a CAGR of 16.05% since inception, while the momentum-based Nifty Small Cap 250 Momentum Quality 100 TRI has delivered 22.03% CAGR, underscoring the potential of momentum strategies to capture enduring growth trends.
Commenting on the launch, Viraj Gandhi, CEO of SAMCO Asset Management, said, “The momentum strategy has historically demonstrated strong alpha generation, though it tends to be inherently volatile. Considering these characteristics, investors may allocate around 15–20% of their portfolio to momentum-based strategies, provided they have a long-term investment horizon. Over a 4–5 year period, such an approach can help enhance overall portfolio returns while balancing risk and reward effectively.”
The fund will be benchmarked against the Nifty Smallcap 250 Total Returns Index (TRI) and managed by a team led by Umeshkumar Mehta, Chief Investment Officer, who brings deep expertise in both fundamental and momentum-based investing.
Mehta added, “Momentum as a strategy has delivered exceptional performance globally. For instance, the S&P SmallCap 600 Momentum Index has generated a CAGR of 10.55% over the past decade — the highest among all major investment styles, including Value, Quality, and Growth. At SAMCO, our objective is to harness the power of momentum investing to deliver superior returns by identifying tomorrow’s large caps, today.”
Investors can participate in the NFO with a minimum lump sum investment of ₹5,000 or via SIPs starting at ₹500 per month.
