The TRUSTMF Small Cap Fund is a relatively new player in the small-cap category. Here is a comprehensive overview:
| Feature | Details |
|---|---|
| Fund Type | Open-ended Equity Scheme – Small Cap |
| Launch Date | November 4, 2024 |
| AUM (Assets Under Management) | ₹1,348 Crore (as of April 2026) |
| Benchmark | Nifty Smallcap 250 Total Return Index |
| Riskometer | Very High |
| Minimum Lumpsum Investment | ₹1,000 |
| Minimum SIP Investment | ₹1,000 |
| Exit Load | 1% if redeemed within 180 days; Nil thereafter |
| Fund Managers | Mihir Vora & Aakash Manghani |
📂 Plan-Wise Breakdown
| Feature | Direct Plan | Regular Plan |
|---|---|---|
| Expense Ratio | ~0.47% | 2.08%–2.43% |
| Min. Lumpsum | ₹1,000 | ₹1,000 |
| Min. SIP | ₹1,000 | ₹1,000 |
🏗️ Portfolio and Strategy
The fund follows a disciplined investment framework, aiming to generate long-term capital appreciation by predominantly investing in small-cap companies. The fund managers, Mihir Vora (B.E. Mechanical, PGDM from IIM Lucknow) and Aakash Manghani, bring extensive experience to the table.
🏭 Top Sectors (as of latest data)
| Sector | Allocation |
|---|---|
| Industrials | ~18% |
| Financials | ~16% |
| Consumer Discretionary | ~14% |
| Healthcare | ~12% |
| Materials | ~11% |
Source: Business Today
💎 Top Holdings (as of April 2026)
| Holding | Allocation |
|---|---|
| Net Current Assets | 6.26% |
| Multi Commodity Exchange of India Ltd | 4.60% |
| Ami Organics Ltd | 2.47% |
| Radico Khaitan Ltd | 2.45% |
| Karur Vysya Bank Ltd | 2.24% |
| Amber Enterprises India Ltd | 2.09% |
Source: Kuvera, ClearTax
📈 Performance and Risk Metrics
Since the fund was launched in November 2024, it has a relatively short track record. Investors should evaluate the fund based on their own risk tolerance and investment horizon rather than short-term fluctuations.
📉 Risk Metrics (as per available data)
| Parameter | Value |
|---|---|
| Standard Deviation | 15.10 |
| Beta | 0.81–0.93 |
| Sharpe Ratio | 0.75 (Category Avg) |
| Alpha | 0.78 |
Source: The Financial Express, Nivesh Sansar
Understanding these metrics:
- Standard Deviation (15.10): This measures the fund’s volatility. A higher number means the fund’s returns can fluctuate more widely. For small-cap funds, a standard deviation of around 15 is typical given the inherent volatility of the segment.
- Beta (0.81–0.93): This indicates the fund’s sensitivity to market movements. A beta below 1 suggests the fund may be slightly less volatile than its benchmark, offering some downside protection during market downturns.
- Sharpe Ratio (0.75): This measures risk-adjusted returns. A positive Sharpe ratio indicates that the fund has generated returns in excess of the risk-free rate relative to the volatility taken. The category average of 0.75 is reasonable for small-cap funds.
- Alpha (0.78): This measures the fund’s performance relative to its benchmark. A positive alpha of 0.78 suggests the fund has outperformed its expected returns based on market risk, indicating skilled fund management.
📊 Performance Overview
| Period | Direct Plan Returns |
|---|---|
| 1 Year | 9.15% – 25.03% |
| Since Inception (Nov 2024) | 4.02% – 6.76% |
Source: ET Money, Advisorkhoj, Paytm Money
💰 Taxation of Small Cap Funds
Since the TRUSTMF Small Cap Fund is an equity-oriented fund (with at least 65% invested in equity), the taxation rules are as follows:
| Holding Period | Tax Rate | Key Details |
|---|---|---|
| Short-term (<12 months) | 20% | Entire capital gain is taxable at 20% |
| Long-term (≥12 months) | 12.5% | Gains up to ₹1.25 lakh in a financial year are tax-free; gains above ₹1.25 lakh are taxed at 12.5% |
Key Points:
- No tax is payable as long as you continue to hold the units.
- TDS is generally not deducted on capital gains from equity mutual funds; investors are responsible for reporting gains in their income tax returns.
- Dividends, if any, are added to the investor’s income and taxed according to their income tax slab rate.
Note: Tax laws are subject to change. Please consult your tax advisor before making investment decisions.
📱 How to Invest in TRUSTMF Small Cap Fund Using the Sanchaay Karo App
The Sanchaay Karo app is an AI-powered mutual fund investment platform designed to help everyday Indians build long-term wealth without complications. Whether you are a first-time investor or planning for a major life goal, the app keeps everything simple, guided, and stress-free.
🚀 Key Features of Sanchaay Karo
| Feature | Benefit |
|---|---|
| Smart Fund Suggestions | Answer a few quick questions and get a portfolio tailored to your needs—instantly |
| Goal-Based Investing | Plan for a home, your child’s education, or retirement. Sanchaay Karo aligns your goals with the right investment path |
| Simple Portfolio Tracking | Clear summaries and easy insights without clutter or complex charts |
| Stay On Track | Get timely reminders and alerts to keep your SIPs running and your goals progressing |
| Expert-Backed Approach | Designed with proven investment frameworks and secure technology |
| SEBI-Compliant & Secure | Invest safely through trusted, registered platforms and leading fund houses |
| Focus on Mutual Funds Only | Unlike platforms offering shares, F&O, and trading, Sanchaay Karo focuses only on mutual funds—no risky speculation, just steady wealth creation |
📝 Step-by-Step Investment Guide
Step 1: Download the Sanchaay Karo App
Step 2: Complete Your Digital KYC
Complete your KYC process inside the app using your PAN and Aadhaar. The app guides you through this process, which can be completed entirely online.
Step 3: Answer a Few Questions
Share details about your financial goals, risk appetite, and investment horizon. The app instantly provides a personalised portfolio tailored to your needs.
Step 4: Select the Fund
Search for TRUSTMF Small Cap Fund and choose between Direct Plan (lower expense ratio of ~0.47%) or Regular Plan (with distributor support).
Step 5: Choose Your Investment Mode
| Mode | Minimum Amount | Best For |
|---|---|---|
| Lumpsum | ₹1,000 | One-time investment when you have surplus cash |
| SIP | ₹1,000 | Regular monthly savings to benefit from rupee-cost averaging |
Step 6: Start Investing
Enter the investment amount and complete the transaction via UPI, Net Banking, or Debit Card.
Step 7: Track Your Portfolio
Monitor your investment performance through the app’s clean dashboard and receive timely reminders to keep your SIPs running.
⚖️ Understanding the Risks
Small-cap funds carry a Very High risk rating as per SEBI’s riskometer. Investors should be prepared for the following:
- Higher volatility: Small-cap stocks can experience sharp price swings in response to market sentiment, quarterly results, or sector-specific news.
- Longer recovery periods: During market downturns, small-caps may take longer to recover compared to large-caps.
- Liquidity concerns: Some small-cap stocks may have lower trading volumes, making it difficult to exit large positions quickly.
However, over long investment horizons (7+ years), small-cap funds have historically delivered returns that comfortably beat inflation and fixed-income options.
Important Advisory: Small-cap funds are best invested through SIP mode rather than lumpsum. SIPs help average out the cost of purchase and reduce the impact of market volatility.
👤 Who Should Consider This Fund?
This fund is suitable for investors who:
- Have a long-term investment horizon of 7 years or more
- Are comfortable with high volatility and intermittent sharp declines in investment value
- Seek exposure to small-cap stocks for high returns
- Are aiming for long-term wealth creation through systematic investing (SIP)
- Already have a core portfolio of large-cap funds and are looking to add a growth-oriented allocation
This fund may not be suitable for:
- Short-term investors (less than 5–7 years)
- Conservative investors seeking capital protection
- Those who cannot tolerate significant portfolio fluctuations
🔚 Final Thoughts
The TRUSTMF Small Cap Fund offers a professionally managed, well-diversified approach to investing in India’s high-growth small-cap segment. With a low entry barrier of just ₹1,000, it is accessible to investors at every stage of their financial journey. The fund is managed by experienced professionals, Mihir Vora and Aakash Manghani, who bring decades of expertise to the table.
The Sanchaay Karo app simplifies the entire investment process—from AI-powered portfolio suggestions to goal-based planning and seamless tracking. Whether you are new to investing or planning for a major life goal, the app keeps everything simple, guided, and stress-free.
Download the Sanchaay Karo app today and start building wealth with the power of small-cap growth.
Disclaimer: This blog is for educational purposes only and does not constitute investment advice. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance does not guarantee future returns. The TRUSTMF Small Cap Fund is a market-linked product and does not assure or guarantee any returns. Consider your risk tolerance and consult with a financial advisor before making investment
