Edelweiss Small Cap

Diversified

Equity

India Micro Cap

Others

Small Cap

Emotionally driven

Investor Profile

1–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Edelweiss Small Cap Fund Growth invests in smaller Indian companies for higher growth potential with higher risk.

What This Strategy Does

Edelweiss Small Cap Reg Gr is an equity small-cap fund which captures India's ₹10 trillion small-cap opportunity through a quantitative multi-factor approach, deploying capital across industrials, financials, and consumer sectors to achieve broad-based earnings growth.

CW Expert Research Notes

Resilient Downside Protection

The fund has demonstrated consistent downside protection across market cycles, outperforming its benchmark in 5 out of the past 12 years.

Differentiated Portfolio Construction

The fund's quantitative process results in a distinct portfolio tilt towards mid-cap stocks, with a 65.7% allocation compared to peers' emphasis on small-caps.

Earnings Revision Catalyst

The fund's overweight in cyclical sectors like industrials and consumer discretionary positions it to benefit from an anticipated earnings revision cycle.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

3.1% AnnuallyAlpha

+21.0% vs +9.8% benchmarkSince Inception

+11.3% vs +6.1% benchmark3Y Annualized

+12.8% vs +4.5% benchmark5Y Annualized

Edelweiss Small Cap

Benchmark Index

Benchmark Performance Comparison

Edelweiss Small Cap Fund

NIFTY 50

Given the product’s limited performance history, the assessment considers the fund house’s track record and the historical performance of comparable strategies managed by the same fund house, which follow similar investment approaches. Such comparisons provide historical context only and do not represent the performance of the new product or indicate its future returns.

Risk Profile

Standard Deviation18.9%

Maximum Drawdown-21.4% | Oct 2024

Sharpe Ratio0.52

Beta0.82

Upside Capture83%

Detailed Risks

Market Risk

Prolonged economic slowdown could dampen consumer demand, impacting small-cap earnings.

Disclaimer: Products compared like fixed deposits may provide fixed guaranteed returns. Mutual Funds investments are subject to market risk, read all scheme related documents carefully before investing. Past performance is not an indicator of future returns.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides exposure to India's entrepreneurial energy before institutional capital discovers it. Small caps offer the highest growth potential but demand patience through volatility cycles. The long-term impact is dramatic wealth creation—historical data shows sustained small-cap investing has generated life-changing returns, but requires conviction to stay invested through sharp drawdowns. Suitable for investors with long time horizons and ability to withstand elevated volatility.

Broader Market View

Market Outlook

The global economy faces headwinds from elevated inflation and tightening monetary policies. However, opportunities exist in sectors poised to benefit from secular trends like digitalization and sustainability.

Why This Strategy is Attractive Now

This strategy aims to capitalize on long-term structural growth drivers while mitigating risks through diversification. Its focus on quality companies with sustainable competitive advantages could provide resilience during market volatility.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their growth prospects.

Why it Makes Sense

In the current market environment characterized by economic uncertainty and elevated volatility, a Quality Growth approach focused on companies with resilient business models, pricing power, and strong balance sheets can provide a degree of defensiveness while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of companies across market capitalizations, with a focus on those demonstrating sustainable competitive advantages, strong profitability, and healthy balance sheets. Selection: The selection process suggests a preference for companies with durable growth drivers, consistent earnings growth, and reasonable valuations relative to their growth prospects. Qualitative factors such as management quality, competitive positioning, and industry dynamics are likely considered. Construction: The portfolio construction process is consistent with a diversified, conviction-weighted approach, with a bias towards higher-quality companies that can compound earnings over an extended period. Risk management techniques, such as position sizing and sector diversification, may be employed to moderate portfolio volatility.

Portfolio Holdings Overview

SectoralAllocation

Technology4.4%

Financial Services21.62%

Consumers24.61%

Energy & Infra2.8%

Services16.62%

Capital Goods29.94%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

City Union Bank LtdFinancial Services3.17%

Karur Vysya Bank LtdFinancial Services2.64%

Multi Commodity Exchange of India LtdFinancial Services2.64%

PNB Housing Finance LtdFinancial Services2.34%

Avalon Technologies LtdTechnology2.27%

Gabriel India LtdConsumers2.18%

KEI Industries LtdCapital Goods2.06%

Ajanta Pharma LtdServices1.94%

Fortis Healthcare LtdServices1.92%

Radico Khaitan LtdConsumers1.84%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Raj Koradia

Lead Portfolio Manager

Mr. Raj Koradia has experience of 10 years. Manages 39 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹23,450 Cr Holds a B.Com degree.

Dhruv Bhatia

Co-Portfolio Manager

Mr. Dhruv Bhatia has experience of 15 years. Manages 22 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹22,167 Cr Holds a PGDM degree.

Trideep Bhattacharya

Co-Portfolio Manager

Mr. Trideep Bhattacharya has experience of 18 years. Manages 89 funds at Edelweiss Asset Management Limited with an AUM of approximately ₹23,943 Cr Holds a MBA degree.

CW Expert Take

Edelweiss brings capital markets expertise to fund management. Their investment teams leverage deep sectoral knowledge from the parent group's domain experience. The fund house combines fundamental research with market structure understanding, useful across equity positioning and credit cycle navigation.

42 years

Combined Team Experience

₹ 69,560 Cr

Assets Under Management

Firm Overview

AMCEdelweiss Asset Management Limited

Total AUM₹1,80,658.3 Cr

Investment Philosophy & Approach

Disciplined Approach

Edelweiss follows a disciplined investment approach focused on rigorous research.

Risk Management

Risk management is an integral part of the investment process.

Long-Term Perspective

The fund house maintains a long-term perspective in capital allocation.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)1.92%

Exit Load1%

Regulatory & Tax Information

INF754K01JJ4

ISIN

DailyDealing Frequency

Nifty Smallcap 250 TR INRBenchmark

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)