Investment Objective
Aditya Birla Sun Life (ABSL) Small Cap Fund seeks to generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities of small cap companies.
Investment Strategy
- The fund allocates at least 65% of its net assets to equity and equity related instruments of small cap companies.
- It may also allocate up to 35% of its funds in equity and equity related instruments of other market cap companies. Further, the scheme may also invest a small portion of its net assets in fixed income instruments (including money market instruments) to manage its liquidity requirements.
- It follows a bottom-up approach for stock selection.
- The fund seeks to identify small cap companies having good quality management, strong fundamentals and robust business models.
- It also considers valuations of the stocks during its stock selection process.
- The scheme does not have any sectoral bias and thus, has the flexibility to invest across various sectors and industries.
Who Should Invest
- Investors seeking long term capital appreciation by investing in a diversified portfolio of small cap companies.
- Those seeking to invest in India’s emerging small-cap companies having long term potential.
- Those comfortable with taking risks, especially over the short term.