Carnelian MF to launch first small-cap fund
The scheme will have a ₹5,000-crore cap, subject to the terms specified in its offer documents
Carnelian MF, a newcomer to the mutual fund industry, plans to launch its first small-cap fund. This new fund offer (NFO) will focus on businesses with sustainable earnings growth, strong competitive advantages, and favorable risk-reward profiles. The fund's cap is set at ₹5,000 crore, allowing for flexibility in portfolio construction while maintaining selectivity as it expands.
With an asset under management (AUM) of approximately ₹80 lakh crore, Carnelian Asset Management will become the 56th fund house in this sector. Founder and Chairman Vikas Khemani emphasizes the importance of understanding businesses, making confident investment decisions, and adopting a long-term perspective on compounding. Despite higher valuations in the small-cap space, the objective is to identify companies where fundamentals and valuations align to present a compelling investment case.
The NFO will accept subscriptions starting October 16. Carnelian Mutual Fund's CEO, Rajkumar Dhiman, highlights the potential of small-cap investing but stresses the need for disciplined business evaluation and portfolio construction. The scheme aims to create a focused portfolio of around 30-50 companies from an initial pool of over 1,000 stocks. All comments must be in English, written in full sentences, and adhere to community guidelines.
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