• NFO Opens on 14 November 2025 and Closes on 28 November 2025
  • Aims to identify high momentum small-cap businesses ranked between 251 and 750 by market capitalization

Mumbai, India: SAMCO Asset Management Private Limited today announced the launch of the SAMCO Small Cap Fund, India’s first momentum-based small-cap fund designed to identify and invest in emerging businesses demonstrating strong revenue, earnings and price momentum. The New Fund Offer (NFO) will open for subscription from November 14, 2025, to November 28, 2025.

The SAMCO Small Cap Fund is an open-ended equity scheme that will predominantly invest in small-cap stocks companies ranked 251st to 750th by market capitalization to capture early-stage growth opportunities in India’s expanding market. The fund is powered by SAMCO’s proprietary C.A.R.E. Momentum Strategy, which stands for Cross-sectional, Absolute, Revenue, and Earnings Momentum. The model combines quantitative and fundamental factors to identify companies that exhibit superior price and business momentum, aiming to deliver sustainable long-term alpha.

India’s small-cap segment has emerged as a key driver of long-term wealth creation, reflecting the country’s entrepreneurial depth and growth potential. With a combined market capitalization of over ₹62 lakh crore, the small-cap universe offers investors exposure to businesses in the early stages of scaling up. Historical data underscores the opportunity the Nifty Smallcap 250 TRI has delivered a 16.05% CAGR since inception, and momentum-based index Nifty Small Cap 250 Momentum Quality 100 TRI has delivered 22.03% CAGR since inception. This demonstrates how momentum strategies can capture enduring growth trends while mitigating the risks of stock-specific biases.

Hence, the launch of the SAMCO Small Cap Fund aims to bridge this opportunity by applying a disciplined, momentum-driven approach to small-cap investing. By combining the analytical strength of quantitative models with the insights of fundamental research, the fund seeks to identify tomorrow’s large-cap leaders at an early stage helping investors participate in India’s next wave of entrepreneurial growth.

Commenting on the launch, Viraj Gandhi, CEO, SAMCO Asset Management Private Limited, 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 is benchmark against the Nifty Small cap 250 Total Returns Index (TRI) and will be managed by a team headed by Umeshkumar Mehta, CIO having deep expertise in fundamental and momentum-based investing.

Umeshkumar Mehta, CIO, 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.”