Latest news with #EIML
&w=3840&q=100)
Business Standard
5 days ago
- Business
- Business Standard
Emkay bets Rs 1,000 cr on small and mid-caps with New Growth Engine Fund
Emkay Investment Managers on Wednesday launched the Emkay SMID Cap Growth Engine Fund, a portfolio that underscores growing investor appetite for India's small and mid-cap space, aiming to capture the next phase of India's economic expansion. Targeting a corpus of Rs 500–Rs 1,000 crore, the fund is being offered in both AIF and PMS formats, and is designed for investors seeking high-conviction exposure to small and mid-cap companies expected to drive the country's future growth story. So, what's the pitch? Why SMIDs now? EIML's new fund is based on a simple idea: India's growth story is no longer just about the giants. Smaller and mid-sized companies — especially those driven by innovation, digital expansion, capex, and consumption — are becoming the real engines of future wealth creation. And here's the kicker: SMID stocks have already delivered strong returns over the past 5 years, but EIML believes that the next 3-5 years could be even better, thanks to: Easing inflation Falling interest rates (which helps smaller businesses that rely on borrowing) Improving household incomes Supportive liquidity conditions Strong backing from FIIs and domestic mutual funds What makes this fund different? Name: Emkay SMID Cap Growth Engine Fund Structure: Available both as AIF (Alternative Investment Fund) and PMS (Portfolio Management Services) Target Corpus: ₹500–₹1,000 crore Strategy: Invests in listed small and mid-cap stocks using bottom-up stock picking Research Framework: The unique E-Qual Framework that scores companies on business strength and management quality Benchmark: S&P BSE 500 TRI Recommended Horizon: 2–3 years Fund Managers: Market veterans Manish Sonthalia and Kashyap Javeri Investment Objective: The product seeks to achieve long-term capital appreciation by investing primarily in small cap & mid cap securities. Description of types of Securities: Under this PMS and AIF product investments are made in equities and equity related instruments. A balanced and well-diversified equity portfolio is created based on fundamental research. Investment Approach: The strategy follows a bottom-up stock picking process "Small & Mid Cap (SMID) offers broader exposure to India's growth story through innovation, digitalisation, capex, and consumption, providing more opportunities for alpha generation compared to large caps. These sectors are likely to benefit from macro tailwinds such as easing inflation, declining interest rates, rising household income boosting consumption, and liquidity measures supporting market revival translating into higher growth. Given that SMID companies tend to rely more on borrowing for their operations and growth, their higher sensitivity to interest rate cycles positions them to revive and potentially outperform in an environment of easing retail inflation and declining rates," said the company in a statement. According to EIML, mid and small-cap companies are anticipated for positive growth over next 3-5 years, making them a good potential bet for investing. EIML also highlights that mid and small-cap stocks have delivered a robust return over the past five years. It further notes that the current macroeconomic conditions and supportive valuations present an attractive entry point for SMID investments, particularly following the recent market correction. Who is this fund ideal for? If you're an investor who: Is looking for higher alpha than large-cap funds Can tolerate moderate to high volatility Has a 2–3 year investment horizon Wants to diversify beyond blue-chip stocks Believes in India's structural growth potential — then this fund might be a smart addition to your portfolio. "As of March 2025, small-cap and mid-cap mutual funds (MFs) together constitute over 30% of total equity flows, a significant jump from 5% a year ago. The dual support from foreign institutional investors (FIIs) and mutual funds makes this rally much more sustainable. Strengthening flows into SMID segments suggest that select opportunities in small and mid-cap stocks could outperform over the medium term," said Manish Sonthalia, Director &; Chief Investment Officer, Emkay Investment Managers Limited. I
Time of India
6 days ago
- Business
- Time of India
Emkay Investment Managers launches SMID Cap Growth Engine Fund
Emkay Investment Managers Limited (EIML) has announced the launch of the Emkay SMID Cap Growth Engine Fund . EIML aims to raise Rs 500 crore to Rs 1,000 crore from this latest fund during FY26. The product seeks to achieve long-term capital appreciation by investing primarily in small-cap and mid-cap securities. Under this PMS and AIF offering, investments are made in equities and equity-related instruments , with a balanced and well-diversified portfolio constructed based on fundamental research. Also Read | How a Rs 50,000 Monthly SIP for 20 years can grow to Rs 5 crore, explains Vijay Kedia Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Neuvěřitelné: Kalkulačka okamžitě ukáže hodnotu vašeho domu [podívejte se na to]! tržní hodnota mého domu Kliknout zde Undo The strategy follows a bottom-up stock-picking approach, supported by extensive fundamental analysis, including an in-depth study of the business, management, and valuation. The fund will be benchmarked against the S&P BSE 500 TRI, and investors are advised to have an investment horizon of two to three years. It will be managed by Manish Sonthalia and Kashyap Javeri. Live Events Small & Mid Cap (SMID) investing offers broader exposure to India's growth story through innovation, digitalisation, capex, and consumption, providing more opportunities for alpha generation compared to large caps. These sectors are expected to benefit from macro tailwinds such as easing inflation, declining interest rates, rising household income, and liquidity measures, all of which support market revival and higher growth. Given that SMID companies often rely more on borrowings for operations and expansion, they are typically more sensitive to interest rate cycles, positioning them to recover faster and potentially outperform in an environment of moderating inflation and falling rates. According to EIML, mid- and small-cap companies are poised for positive growth over the next 3–5 years, making them a compelling investment opportunity. The firm also highlights that mid- and small-cap stocks have delivered robust returns over the past five years. Furthermore, EIML notes that the current macroeconomic environment and supportive valuations offer an attractive entry point for SMID investments—especially after the recent market correction. Also Read | Gold prices may fall 12-15% in next 2 months, warns Quant Mutual Fund As of March 2025, small-cap and mid-cap mutual funds (MFs) together account for over 30% of total equity flows, a sharp increase from just 5% a year ago. The dual support from foreign institutional investors (FIIs) and mutual funds makes this rally far more sustainable. Strengthening flows into SMID segments indicate that select opportunities in small- and mid-cap stocks could outperform over the medium term. 'SMID offers a compelling mix of growth potential, valuation comfort, and supportive macro trends, making it a strong candidate for investment. The fund follows a focused bottom-up stock-picking approach, backed by in-depth fundamental research and our proprietary E-Qual Framework—arguably the only framework of its kind in India—to objectively score management quality,' said Manish Sonthalia, Director & Chief Investment Officer, Emkay Investment Managers.
