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Emkay Investment Managers Limited (EMIL) has launched the 'Emkay SMID Cap Growth Engine Fund'. This fund will invest primarily in small cap & mid cap securities.
Interestingly, EMIL will launch this product in both PMS and AIF Cat III structures. The firm expects the fund to raise Rs 500 to Rs. 1000 crore AUM through both PMS and AIF structures.
As of March 2025, small cap and mid cap get 30% of total equity flows , a significant jump from 5% a year ago.
According to EIML, mid and small-cap companies are anticipated for positive growth over next 3-5 years, making them a good potential bet for investing. It further notes that the current macroeconomic conditions and supportive valuations present an attractive entry point for SMID investments, particularly following the recent market correction.
Manish Sonthalia, Director and CIO, Emkay Investment Managers said, “SMID offers a compelling mix of growth potential, valuation, comfort and supportive macro trends, making it a strong candidate for investment. The fund follows focused bottom-up stock picking backed by in-depth fundamental research based on our E-Qual Framework, arguably, the only framework of its kind in India, to score management quality objectively.”
