Edelweiss Small Cap Fund

(An open ended scheme predominantly investing in small-cap stocks)

Invest in Edelweiss Small Cap Fund in small steps through a unique *Smart Trigger enabled Plan(STeP).
It helps you invest in a staggered manner and mitigates market timing risk.


Through STeP facility investors can spread their investment in Edelweiss Small Cap Fund in 5 equal monthly instalments

Trigger enabled

Under this facility 20% of the application money will be invested upfront in Edelweiss Small Cap Fund


Remaining 80% will be invested in Edelweiss Liquid Fund and will switch to Edelweiss Small Cap Fund in 4 equal monthly instalments on market dips

Why Invest in Small Cap Mutual Funds ?

Reatively Higher Alpha**

  • Quality small-caps outperform as they show stronger earnings growth compared to large-caps
  • Out of 870 stocks in BSE Small-Cap Index, more than 400 stocks covered by less than 5 analysts providing edge to fund manager in generating alpha

Wider scope to invest

  • Over 2500 stocks are available in small-cap segment across many unique sectors not covered by large-caps

**Data Source: Bloomberg. S&P BSE Small-cap index considered for this analysis. Data as on Dec-18.

What is Edelweiss Small Cap Fund ?

Investment Objective:
Edelweiss Small Cap Fund aims to generate long term capital appreciation from a portfolio that predominantly invests in equity and equity related securities of small-cap companies.

Investment Strategy:

Invests predominantly in small-cap companies that are

  • Compounding stories with reasonalbe growth prospects
  • High quality businesses with strong return ratios
  • Operating in niche environment
  • Eye on quality - higher degree of due diligence

Aim to benefit from both sources of return

  • Compounding of earnings
  • Valuation re-rating

Asset Allocation

  • 65% to 100% into equity and equity related securities of small-cap companies
  • 0% to 35% into equity and equity related securities of other companies
  • 0% to 35% into debt and money instruments

Why should you invest in Small-Cap now?

Investing in small-caps has been rewarding when last one year returns are negative. Currently small-cap Index is down over 28% in last one year and this may be a good time to invest

Last 1yr return (Small-Cap Index) Subsequent 5yr Average Return (CAGR)
From - 30% to -20% 13.7%
From - 20% to -10% 15.0%
From - 10% to 0% 14.0%
From - 0% to 10% 11.7%
From - 10% to 20% 6.7%
From - 20% to 30% 5.7%

Rolling return analysis done using Nifty small-cap 250 index till Dec 2018

53% small-cap stocks have fallen more than 30% from their peak. This provides good opportunity for picking quality small-cap stocks

Fall from peak % Stocks
Less than 10% 4
10% to 20% 2
20% to 30% 16
30% to 50% 53
More than 50% 25

Nifty small-cap 250 index used for the above analysis. Data as on Dec 2018.

Know more about Edelweiss Small Cap fund

Product Leaflet


* Smart Trigger enabled Plan (STeP) is a unique facility that enables investors to invest in the scheme in a stagerred manner during the New Fund Offer Period only. For more information about STeP facility, please refer the application form.

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Edelweiss Small Cap Fund is suitable for investors who are seeking*:

  • Long-term capital appreciation
  • Investments predominantly in equity and equity related securities of small-cap companies

Offer of Units of Rs.10/- each during the New Fund Offer Period and at NAV based prices upon re-opening

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.


Investors understand that their principal will be at high risk

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.