Groww Mutual Fund has announced the launch of the Groww Small Cap Fund, an open-ended equity scheme predominantly investing in small cap stocks. The New Fund Offer (NFO) will be open from January 08 to January 22, 2026. The scheme seeks to generate long-term capital appreciation by investing in high-quality, scalable small cap companies through a disciplined bottom-up investment approach, guided by Groww Mutual Fund’s QGaRP framework—Quality and Growth at a Reasonable Price. India’s economy is undergoing a broad-based transformation, with strengthening physical, financial, and technological capacity reshaping the opportunity set for businesses across the size spectrum. Rising infrastructure spending, deeper capital markets, improved access to formal credit, and population-scale digital platforms are reducing historical disadvantages faced by smaller companies. As a result, many small businesses today are better positioned to scale operations, access new markets, and compete more effectively. SSHistorically, small caps have also demonstrated the potential to deliver higher long-term returns than large caps, driven by a relatively smaller base and greater headroom for growth. Small caps further offer exposure to a wide and diverse set of niche, specialised, and emerging sectors that are underrepresented or absent in other segments.
Despite this diversity, a large part of the small cap universe continues to receive meaningfully lower analyst coverage, creating information gaps that can lead to opportunities for disciplined, research-led investors to identify quality businesses early in their growth journey. Groww Small Cap Fund follows a true-to-label mandate, investing predominantly in small cap stocks, with zero large cap exposure. The Scheme is purely bottom-up in nature, avoiding macro-led or thematic calls, and focuses on identifying businesses with strong fundamentals, sustainable growth drivers, and reasonable valuations.
At the core of the investment process is Groww Mutual Fund’s QGaRP framework, which evaluates every investment across three key dimensions of business and management quality, potential for growth, and valuation discipline. The Groww Small Cap Fund may be considered by investors seeking long-term capital appreciation through a disciplined, true-to-label small cap strategy. Scheme details: Scheme Type: An open-ended equity scheme predominantly investing in small cap stocks, Benchmark: Nifty Smallcap 250 Index – TRI, NFO Period: January 8 – January 22, 2026, Fund Manager: Mr. Anupam Tiwari, Minimum Investment: ₹500 and in multiples of Re. 1 thereafter, Exit Load: 1% if redeemed within 1 year from the date of allotment; Nil thereafter.
