Helios Small Cap Fund Gets SEBI Nod for NFO Launch at ₹10 Per Unit

Mumbai, August 1, 2025: Helios Mutual Fund has obtained regulatory clearance from the Securities and Exchange Board of India (SEBI) to launch the Helios Small Cap Fund. This new open-ended equity scheme is designed with the objective of generating long-term capital appreciation by primarily investing in equity and equity-related securities of small-cap companies. During its New Fund Offer (NFO) period, units of the fund will be available at a price of ₹10 each.

Fund Snapshot

Investment Objective

According to the Scheme Information Document (SID), the primary objective is:

“To generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity-related securities of small cap companies.”

The fund explicitly states that there is no guarantee or assurance of achieving this objective.

Asset Allocation Strategy

Helios Mutual Fund will follow SEBI’s classification of small caps (251st company onwards in market capitalization).

Innovative Strategy: “Elimination Investing”

The Helios Small Cap Fund introduces a distinctive investment philosophy termed “Elimination Investing.” This approach prioritises the avoidance of poor investment choices rather than solely focusing on selecting winning stocks. The fund employs eight core filters to systematically eliminate risky candidates from its investment universe. These filters include identifying weak thematic relevance, unfavourable industry dynamics, potential disruption risk, weak management, governance concerns, poor accounting practices, negative medium-term triggers, and unjustified valuations. After applying these rigorous filters, the remaining investment universe is then divided into two categories: “Good stocks,” which are those demonstrating a high confidence of delivering reasonable returns, and “Emerging stocks,” which are characterised by a reasonable confidence of yielding high returns.

Plans, Options, and Loads

Default: Direct Plan – Growth Option (if not specified).

Exit Load:

• 1% if units are redeemed/switched out within 3 months from allotment
• Nil beyond 3 months

Minimum Application & Systematic Options

Daily STP is available only from Business Days of the transferor scheme.

NAV, Expense Ratio & Disclosure

The first Net Asset Value (NAV) of the fund will be declared within five business days following the allotment. Daily NAVs will be updated on both the Helios AMC and AMFI websites by 11:00 p.m. The Total Expense Ratio (TER) for the fund can be up to 2.25% for Assets Under Management (AUM) up to ₹500 crore, with reduced rates applying for higher AUM slabs. It is important to note that no NFO charges will be levied on investors, as these costs will be entirely borne by the Asset Management Company (AMC).

Taxation Highlights

Additionally, STT (Securities Transaction Tax) will apply as per regulations.

Investor Services

Risk Profile

As per the product label, the Helios Small Cap Fund is classified under a “Very High” risk category on the Riskometer. This makes it particularly suitable for investors who have a long-term investment horizon and possess a high appetite for risk.

Insights For Investors

• High Growth Potential: Small-cap companies often have greater headroom for growth compared to large caps, offering the potential for higher returns over the long term. However, they may also exhibit higher volatility.
• Unique Investment Strategy: The fund’s “Elimination Investing” strategy is an uncommon approach that focuses on avoiding poor investments using strict filters. This may help manage downside risks in the volatile small-cap space.
• Risk-Reward Balance: While the fund carries a Very High risk label, it may suit investors with a longer investment horizon (5+ years) who are comfortable with short-term fluctuations in pursuit of long-term gains.
• Tax Efficiency Considerations: Long-term investors benefit from a 12.5% LTCG tax rate (above Rs. 1.25 lakh), while short-term gains attract higher taxation. IDCW payouts may not be tax-efficient for those in higher income brackets.
• Diversification Tool: Adding this fund could enhance portfolio diversification, especially for investors currently underexposed to the small-cap segment. But it is advised to limit exposure based on risk tolerance and financial goals.

About Helios Mutual Fund

Helios Mutual Fund is managed by Helios Capital Asset Management (India) Pvt. Ltd., an Asset Management Company (AMC) registered with SEBI and based in Mumbai. The fund house has a notable track record in managing equity-oriented strategies and is known for its research-driven, high-conviction investment approach. For investors seeking to diversify their portfolios into small-cap equities through a structured and risk-screened methodology, the Helios Small Cap Fund may present an attractive opportunity during its NFO phase. Investors are strongly advised to read the full Scheme Information Document (SID) and consult their financial advisors before making any investment decisions.

REF: https://www.sebi.gov.in/filings/mutual-funds/aug-2025/helios-small-cap-fund_95756.html

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