While the markets have come nearer to their highs the small caps haven’t moved at all. We think that the small caps are sitting on the cusp of a big move up. 

In this context we are launching our ‘BM Focused Small cap’ smallcase. And like always we will put in our own Rs 5 lakhs every month into this scheme

1) Investment Philosophy: Investing in smallcaps can be rewarding if we can select market leaders growing at 20% plus with high return on equity of more than 20% and which are available at decent valuations. We have selected companies where there is industry tailwind for the next 3-5 years. We will avoid companies where there are corporate governance issues. We aim to focus on protecting downside risk. 

2) Our Personal Investment: Based on our principle of having ‘thick’ skin in the game, we will put in ₹5,00,000 every month in our new smallcase also. Halwai apni mithai khata hai.

3)Average Market Capitalisation: the weighted average market cap is approximately ₹15,000 crores. We don’t want to buy ultra-illiquid smallcaps run by untested and unscrupulous promoters.

4) Minimum Amount: Theoretically, you can start with Rs 50,000. And scale it up as and when you can. This is a flat fees model. We don’t charge money on AUM. So, the more you put in the better it gets for you. 

5)Portfolio Concentration: This will be a concentrated portfolio of 15 stocks divided across Consumer, Financials, Capital Goods, Construction Real Estate

6)Portfolio Benchmark : Nifty Smallcap100