Chandigarh: The fund will build a diversified equity portfolio comprising listed equities and related instruments, benchmarked against the S&P BSE 500 Total Returns Index (TRI). It is intended for investors with a 2–3 year investment horizon.
Emkay Investment Managers, the asset management arm of Emkay Global Financial Services, has announced the launch of its latest investment offering, the ‘Emkay SMID Cap Growth Engine Fund’. The open-ended fund will be available under both Alternative Investment Fund (AIF) and Portfolio Management Services (PMS) routes, with the asset manager targeting an asset under management (AUM) of ₹500–1,000 crore in FY26.
The fund aims to generate long-term capital appreciation by investing primarily in small- and mid-cap (SMID) companies, which EIML believes offer strong alpha-generation potential driven by themes such as innovation, digitisation, capital expenditure, and consumption.
The investment strategy will follow a bottom-up stock-picking approach, underpinned by fundamental analysis including business strength, management quality, and valuation.
The fund will build a diversified equity portfolio comprising listed equities and related instruments, benchmarked against the S&P BSE 500 Total Returns Index (TRI). It is intended for investors with a 2–3 year investment horizon.
The strategy will be jointly managed by Manish Sonthalia and Kashyap Javeri, who bring experience in equity research and portfolio management. According to EIML, current macroeconomic factors such as easing inflation, falling interest rates, and improved household consumption trends create a favourable backdrop for investing in SMID segments.
The firm noted that small- and mid-cap mutual funds now account for over 30% of total equity flows as of March 2025—up sharply from around 5% the previous year. EIML believes that this growth, backed by sustained interest from both domestic mutual funds and foreign institutional investors, signals a more stable rally in the segment.
Speaking on the launch, Manish Sonthalia, Director and CIO at Emkay Investment Managers, said, “The SMID segment presents a compelling mix of growth potential and supportive macro trends. Our approach is backed by our proprietary E-Qual framework that scores management quality using objective criteria.”
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