Abakkus Small Cap Fund Draft Filed With SEBI

Abakkus Asset Manager has filed the draft offer document with the Securities and Exchange Board of India for the launch of Abakkus Small Cap Fund. The proposed scheme is an open-ended equity mutual fund categorised as a small-cap fund under SEBI regulations.

It is structured to invest primarily in equity and equity-related instruments of small-cap companies. The draft filing marks Abakkus AMC’s expansion into the small-cap equity segment through a dedicated scheme.

Scheme Category and Benchmark

The Abakkus Small Cap Fund is classified as a Small Cap Fund, which requires a minimum allocation of 65% in equity and equity-related instruments of small-cap companies. Small-cap companies are defined as those ranked 251st onwards by full market capitalisation in line with SEBI and AMFI norms.

The scheme is benchmarked against the NIFTY SmallCap 250 Total Return Index. This benchmark reflects total returns, including dividends, from the broader small-cap segment of the Indian equity market.

Investment Objective and Risk Profile

The investment objective of the scheme is to generate long-term capital appreciation through active stock selection within the small-cap universe. The draft document specifies that there is no assurance or guarantee that the investment objective will be achieved.

The scheme has been categorised under the “Very High” risk category based on SEBI’s risk-o-meter framework. It is designed for investors with a high-risk tolerance and a long-term investment horizon who can manage significant return volatility.

Asset Allocation and Investment Universe

Under normal market conditions, the scheme will invest between 65% and 100% of its net assets in equity and equity-related instruments of small-cap companies. The remaining portion, up to 35%, may be allocated to equities of non-small-cap companies, debt and money market instruments, and other permitted securities.

These may include units of REITs and InvITs, subject to applicable regulatory limits. The fund may also use equity derivatives for hedging, portfolio rebalancing, and limited non-hedging purposes as permitted by SEBI regulations.

Read More: 360 ONE Mutual Fund Files Draft for DynaSIF Equity Long-Short Fund with SEBI.

Conclusion

The filing of the draft offer document for Abakkus Small Cap Fund with SEBI signals the proposed launch of a new high-risk equity scheme in the small-cap category. The fund combines an active, research-driven stock selection approach with flexibility in asset allocation.

With a “Very High” risk classification, it is intended for investors with long-term horizons and the ability to withstand market volatility. The final launch and detailed terms will be subject to approval by the market regulator.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.