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The scheme will be benchmarked against the Nifty Small Cap 250 Total Return Index (TRI), and the New Fund Offer (NFO) opens on November 6, and will close on November 20.
The fund will look to capitalise on India’s expanding MSME ecosystem, which, as per IBEF data (August 2025), comprises over 6.4 crore enterprises employing nearly 27 crore people.
Helios Mutual Fund has launched the Helios India Small Cap Fund, an open-ended equity scheme that will invest predominantly in emerging small-cap businesses positioned to benefit from India’s next phase of economic expansion. The New Fund Offer (NFO) opens on November 6, 2025, and will close on November 20, 2025. The scheme will be benchmarked against the Nifty Small Cap 250 Total Return Index (TRI).
The fund aims to capture opportunities in India’s small-cap segment, which Helios believes offers the “purest play” on domestic growth through sectors such as manufacturing, consumption, and capital expenditure (capex). It follows Helios’ research-driven, conviction-based investment approach, focusing on long-term wealth creation through quality small-cap businesses.
Market Outlook and Investment Rationale
Commenting on the launch, Dinshaw Irani, CEO & MD of Helios India, said that the equity markets have remained resilient despite sustained foreign portfolio investor (FPI) outflows, thanks to robust domestic participation.
“We believe the worst of the outflows is behind us and expect positive news flows going forward. India’s macro backdrop continues to stand out among emerging markets, supported by strong GDP growth, benign inflation, and prudent fiscal and monetary management,” Irani said.
He added that equity valuations have moderated, earnings estimates are stabilising, and India’s relative underweight in the MSCI Emerging Markets Index could attract renewed FPI inflows as global rates peak and the U.S. dollar weakens.
“On a P/E-to-growth basis, small-caps now offer better relative value compared to large-caps,” he said, noting that the small-cap segment tends to outperform during liquidity recovery cycles due to higher earnings sensitivity and operational leverage.
Focus on Emerging Growth Themes
Deviprasad Nair, Business Head – Helios India, said the small-cap universe presents investors with opportunities to participate in early-stage, under-researched businesses poised for long-term growth.
“Many of these firms operate at the intersection of innovation, domestic consumption, and manufacturing expansion. With disciplined research and risk management, this segment offers compelling opportunities for long-term investors,” Nair said.
The fund will look to capitalise on India’s expanding MSME ecosystem, which, as per IBEF data (August 2025), comprises over 6.4 crore enterprises employing nearly 27 crore people. Rising digital penetration across Tier-2 and Tier-3 cities has also enabled broader access to markets, fuelling small-business growth.
Sectors such as healthcare, chemicals, capital goods, and consumer services, which have limited representation in large-cap indices, are expected to play a crucial role in the fund’s investment strategy.
Fund Snapshot
Scheme Name: Helios India Small Cap Fund
NFO Period: November 6 – November 20, 2025
Scheme Type: Open-ended equity scheme investing predominantly in small-cap companies
Benchmark: Nifty Small Cap 250 TRI
Minimum Investment: Rs 5,000 (and in multiples of Rs 1 thereafter)
Minimum Additional Purchase: Rs 1,000 (and in multiples of Rs 1 thereafter)
Helios said the fund is designed for investors seeking long-term capital appreciation by investing in small-cap companies positioned to benefit from India’s structural growth drivers.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
November 06, 2025, 16:59 IST
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