Motilal Oswal Asset Management Company has collected over ₹1,350 crore through its small-cap new fund offer. This is the highest-ever collection for any active small-cap NFO, said the fund house. Moreover, it is the first active NFO from the fund house in four years.

The participation from retail investors has been quite notable, with over 1.5 lakh investors making an average investment of ₹85,000 in the NFO.

The small-cap fund has received SIP registrations of over ₹15 crore from 24,000 investors. The AMC received support from about 5,000 distribution partners.

The Small-Cap 250 index has outperformed other key indices in 2023. Small-cap earnings growth has significantly compounded by 48 per cent over the last two financial years.

The small-cap index has compounded investor returns by 19 per cent, 20 per cent, and 22 per cent over the last 15, 10, and 5 years, respectively.

Navin Agarwal, Executive Managing Director and CEO, Motilal Oswal AMC, said with an encouraging investor response, the fund house will apply its time-tested investing process to create a portfolio.

Risk management plays a crucial role in small-cap investment, and the rigorous framework developed in-house will help mitigate the volatility associated with small caps, he said.

Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC, said the good response for the NFO comes with heightened responsibility, and the fund house will meticulously curate portfolios focusing on delivering superior returns.

Motilal Oswal Small Cap Fund aims to maintain a well-balanced portfolio with a minimum 65 per cent exposure to small-cap stocks.