Mumbai-based Abakkus Mutual Fund has announced the launch of its second equity new fund offer (NFO), the Abakkus Small Cap Fund, as it seeks to tap investor appetite for smaller companies amid improving valuations.
The open-ended equity scheme, which will predominantly invest in small-cap stocks, opens for subscription on 26 February 2026 and closes on 12 March 2026. The fund will be benchmarked against the NIFTY SmallCap 250 TRI and will be managed by Sanjay Doshi, Head of Investments and Research at the fund house.
Under market regulator Securities and Exchange Board of India (SEBI) norms, small-cap companies are defined as those ranked 251st and below in terms of full market capitalisation. In line with these guidelines, the scheme will allocate between 65% and 100% of its assets to equity and equity-related instruments of small-cap companies. Up to 35% may be invested in other equities or debt and money market instruments, with limited exposure permitted to InvITs and ReITs.
The fund house said the strategy would focus on bottom-up stock selection, emphasising strong balance sheets, earnings visibility and liquidity management. It aims to build a diversified portfolio while maintaining prudent position sizing in what is categorised as a “Very High” risk product on the Risk-O-Meter.
Founder Sunil Singhania said the launch reflects the company’s intention to broaden its product suite for investors with varying risk appetites. Chief Executive Vaibhav Chugh added that the objective is to seek improved risk-adjusted returns over the long term, particularly as small-cap valuations become more reasonable following recent market corrections.
The fund will apply Abakkus’ in-house “MEETS” investment framework, assessing management quality, earnings strength, structural opportunities and valuation discipline. Its portfolio is expected to span sunrise sectors such as electronics manufacturing, defence and healthcare services, alongside export-oriented businesses, financials and special situation opportunities including demergers and turnaround plays.
The minimum investment amount has been set at ₹500.
