Helios Small Cap Fund NFO Opens at November 06, 2025

The Helios Small Cap Fund is an open-ended equity scheme designed to provide long-term capital appreciation by investing predominantly in small-cap companies. Managed by Helios Capital Asset Management, the fund employs a unique “Elimination Investing” strategy to systematically avoid poor investment choices. During the NFO period, units are available at ₹10 each. The fund targets high-growth potential small-cap stocks while maintaining a risk-aware approach through eight rigorous filters that screen out weak thematic relevance, poor management, governance concerns, and unjustified valuations. With options for Growth and IDCW, the NFO offers investors a structured way to access the volatile small-cap segment with a very high-risk profile.

Key Features of Helios Small Cap Fund

• Opening Date: November 06, 2025
• Closing Date: November 20, 2025
• Exit Load: 1% if redeemed within 3 months; Nil beyond 3 months
• Minimum Investment Amount: ₹5,000 for lump sum; ₹1,000 per SIP installment

Objective of the NFO Helios Small Cap Fund

The primary objective of the Helios Small Cap Fund - Direct (G) is to generate long-term capital appreciation by investing mainly in equity and equity-related securities of small-cap companies. The fund seeks to outperform its benchmark while adhering to a high-conviction investment philosophy, though there is no assurance of returns or guarantee of meeting this objective.

Investment Strategy of Helios Small Cap Fund

• Predominantly invests in SEBI-classified small-cap companies (251st company onwards in market capitalisation)
• Allocates 65%-100% to small-cap equity and equity-related instruments
• Diversifies 0%-35% into other equities and 0%-35% into debt/money market instruments for balance
• Incorporates up to 10% investment in REITs and InvITs
• Employs “Elimination Investing” to filter out poor-quality investments based on thematic, governance, accounting, and valuation criteria
• The remaining portfolio is split into “Good stocks” and “Emerging stocks” for high and reasonable return potential

Risks Associated with Helios Small Cap Fund

• Very high market risk due to exposure to volatile small-cap stocks
• Potential for short-term NAV fluctuations impacting investor sentiment
• Concentration risk arising from focused investments in small-cap companies
• Credit and liquidity risks for debt/money market exposure
• Sectoral or thematic risk if selected industries underperform
• Currency, inflation, and interest rate risks indirectly impact equity performance
• No assurance of achieving the stated investment objective

Risk Mitigation Strategy by Helios Small Cap Fund

The NFO mitigates risks through its distinctive “Elimination Investing” strategy, which systematically filters out risky investments across eight dimensions such as weak management, governance issues, poor accounting, and disruptive industry trends. By eliminating potentially underperforming stocks, the fund reduces exposure to avoidable losses. Diversification across small-cap, non-small-cap equities, debt instruments, and REITs/InvITs further balances the risk-reward profile. Continuous monitoring, adherence to SEBI small-cap classification, and disciplined portfolio management also contribute to prudent risk management.

What Type of Investor Should Invest in Helios Small Cap Fund?

• Investors with a long-term horizon of 5+ years
• Those comfortable with very high risk and short-term volatility
• Individuals seeking high-growth potential small-cap equity exposure
• Investors aiming to diversify portfolios into underrepresented high-risk segments

Where Will Helios Small Cap Fund Invest?

• Predominantly in small-cap equity and equity-related instruments as per SEBI classification
• Select non-small-cap equities for additional diversification
• Debt and money market instruments to manage liquidity and mitigate volatility
• Up to 10% in REITs and InvITs for high-risk, high-return opportunities