Upcoming NFOs to Watch: Groww Small Cap Fund and Kotak Multi Asset Active FOF

Two new mutual fund offers (NFOs) are set to open in January 2026, giving investors fresh opportunities across equity and multi-asset strategies. Groww Mutual Fund is launching a small-cap equity scheme, while Kotak Mahindra Mutual Fund has filed papers to introduce a multi-asset fund of funds. These NFOs cater to different risk profiles and investment objectives.

Groww Small Cap Fund: Focus on High-Growth Companies

Groww Mutual Fund is launching the Groww Small Cap Fund, an open-ended equity scheme that will invest primarily in small-cap stocks. The NFO will open on 8 January 2026 and close on 22 January 2026. The scheme will be managed by Anupam Tiwari.

The fund aims to generate long-term capital appreciation by following a bottom-up stock selection approach. It will use Groww Mutual Fund’s QGaRP framework, which focuses on quality companies with strong growth potential available at reasonable prices. The portfolio will have no exposure to large-cap stocks and will be benchmarked against the Nifty Smallcap 250 Index – TRI.

According to the fund house, changes in India’s economy such as higher infrastructure spending, improved access to formal credit, deeper capital markets, and digital platforms are creating better growth opportunities for small-cap companies. Some parts of the small-cap segment have also seen valuation moderation, even as company fundamentals continue to improve.

The minimum investment amount is ₹500. An exit load of 1% will apply if units are redeemed within one year, with no exit load thereafter. The scheme is suitable for investors with a long-term investment horizon who can handle higher interim volatility.

Kotak Multi Asset Active FOF: Diversification Across Asset Classes

Kotak Mahindra Mutual Fund has filed an offer document with SEBI to launch the Kotak Multi Asset Active FOF, an open-ended fund of funds. The NFO price will be ₹10 per unit, and the scheme will offer both Growth and IDCW options.

The fund will invest in actively managed equity-oriented, debt-oriented, and commodity-based mutual fund schemes. Its performance will be benchmarked against a composite index comprising Nifty 50 TRI, Nifty Short Duration Debt Index, and domestic prices of gold and silver.

The minimum application amount is ₹1,000. There is no entry load. An exit load of 1% will apply for certain redemptions within six months, while redemptions after six months will not attract any exit load. The scheme aims to collect a minimum target amount of ₹10 crore.

Read more: How Long a ₹7,500 Monthly SIP May Take to Build a ₹75 Lakh Corpus?

Conclusion

The upcoming NFOs from Groww and Kotak offer investors distinct choices. The Groww Small Cap Fund targets higher growth through small-cap stocks, while the Kotak Multi Asset Active FOF focuses on diversification across asset classes. Investors should assess their risk appetite, investment horizon, and portfolio needs before considering these new offerings.

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. 

Mutual fund investments in the securities market are subject to market risks. Read all the related documents carefully before investing.