Helios Small Cap Fund – NFO: A Detailed Insight for Smart Investors

• Sushil Bajaj |
• 28 October 2025 |

📅 Last Updated on: October 28, 2025

The Helios Small Cap Fund aims to tap into India’s growing small-cap segment — offering investors an opportunity to benefit from the potential of emerging and fast-growing companies. Let’s dive into the details of this upcoming small-cap fund and see how it fits into your investment journey.

---

Quick Snapshot of Helios Small Cap Fund

Particulars	Details
Fund Name	Helios Small Cap Fund
Category	Equity
Scheme Type	Open-ended
Sub-category	Equity – Diversified
Risk Level	Very High
Minimum Investment	₹5,000
Additional Investment	₹1,000
Exit Load	1% (if redeemed within 12 months)
Fund Manager	Alok Bahi
NAV Calculation	Daily
New Fund Offer (NFO) Open Date	November 6, 2025
NFO Close Date	November 20, 2025
Repurchase/Redemption	Available post NFO
Benchmark	To be announced (likely Nifty Smallcap 250 TRI)

---

Investment Objective of the Helios Small Cap Fund

The Scheme will be managed actively in line with the investment objectives and asset allocation of the Scheme.
The objective of the Scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of Small cap companies.
Further, in order to achieve diversification in the Scheme may invest upto 35% of its net assets in equity and equity related instruments of companies other than small cap companies. Also, the scheme may invest upto 35% of its net assets in debt and money market instruments.

Risk control measures

Investments made by the Scheme would be in accordance with the investment objective of the Scheme and the provisions of the SEBI (Mutual Funds) Regulations, 1996. Since investing requires disciplined risk management, the AMC would incorporate adequate safeguards for controlling risks in the portfolio construction process. While allocating and choosing securities, the Investment Manager will aim to diversify by gaining broad exposure to different industries and companies in order to reduce risk.

---

Benchmark Details

(Small Cap Fund – An open-ended equity scheme predominantly investing in small cap stocks)
Product Labelling: To provide investors an easy understanding of the kind of product/scheme they are investing in and its suitability to them, the product labelling is as under:

---

Why Invest in Helios Small Cap Fund

1. Growth Potential of Small-Cap Stocks
Small-cap companies often represent the next generation of market leaders. Investing early in such businesses can lead to higher long-term returns.

2. Managed by Experienced Professionals
With Alok Bahi at the helm, investors can rely on strategic stock-picking and an active management style focused on quality growth companies.

3. Portfolio Diversification
Adding a small-cap fund like Helios to your portfolio can enhance diversification and reduce concentration risk in large and mid-cap holdings.

4. Long-Term Wealth Creation
Historically, small-cap funds have outperformed other equity categories over longer horizons — ideal for investors with a time horizon of 5–10 years or more.

5. Flexibility of an Open-Ended Scheme
Post-NFO, investors can enter and exit anytime, providing liquidity and convenience unlike closed-ended schemes.

---

Investment Areas — Sectors & Companies

Though the fund is new, the focus will likely be on growth-oriented sectors such as:

---

Typical small-cap portfolios include companies with:

• Strong revenue visibility
• Scalable business models
• High promoter commitment
• Sound corporate governance

This mix ensures a balanced approach between risk and reward.

---

Taxation of Helios Small Cap Fund

Type of Gains	Holding Period	Tax Rate
Short-Term Capital Gains (STCG)	Less than 12 months	20% on profits
Long-Term Capital Gains (LTCG)	More than 12 months	12.5% (on gains above ₹1.25 lakh)
Dividends	Taxed as per investor’s income slab	TDS applicable if over ₹5,000/year

Note: Small-cap funds are treated as equity-oriented mutual funds, so equity taxation rules apply.

---

Dealing with Investor Pain Points (Q&A Format)

Are small-cap funds too risky for first-time investors?
Yes, small-cap funds carry high volatility, but over longer horizons (5–10 years), they have historically provided superior risk-adjusted returns.

How can I reduce the risk while investing in this fund?
Opt for Systematic Investment Plans (SIPs) instead of lump-sum investments. SIPs average out market fluctuations and lower entry risk.

Will the fund invest only in small companies?
No, while the focus remains on small caps, the fund can invest up to 35% in mid and large-cap companies for stability.

Is the Helios Small Cap Fund suitable for me?
If you are a long-term investor with moderate-to-high risk tolerance, this fund can be a valuable addition to your portfolio.

---

FAQs on Helios Small Cap Fund

Q1. What is the minimum investment amount?
The minimum investment is ₹5,000, with additional investments starting from ₹1,000.

Q2. What is the exit load?
1% if redeemed within 12 months from the date of allotment.

Q3. Who is managing the fund?
The fund is managed by Mr. Alok Bahi, a seasoned equity fund manager.

Q4. How frequently is NAV calculated?
NAV will be calculated daily.

Q5. When does the NFO close?
The NFO closes on November 20, 2025.

---

Conclusion & Disclaimer

The Helios Small Cap Fund is a promising opportunity for investors looking to capitalize on India’s small-cap growth story. With an experienced management team and diversified investment strategy, it aims to generate sustainable long-term wealth.

However, small-cap funds come with higher volatility and risk, so investors should assess their risk appetite before investing.

---

Disclaimer:- Mutual Fund investments are subject to market risks, please read scheme related documents carefully before investing.