Emkay Launches SMID Cap Fund, Targets ₹1000 Cr AUM

New Delhi, Jun 3 (PTI) Emkay Investment Managers Ltd (EIML) on Tuesday announced the launch of the 'Emkay SMID Cap Growth Engine Fund', targeting Rs 500-1,000 crore assets under management (AUM) in 2025-26.

The fund seeks to achieve long-term capital appreciation by investing primarily in small and mid-cap securities, EIML, the asset management arm of Emkay Global Financial Services, said in a statement.

According to EIML, macro tailwinds like easing inflation, declining interest rates and rising household income boosting consumption are likely to create a favourable environment for investment in the small and mid-cap (SMID) segment. It expects mid and small-cap companies are anticipated for positive growth over the next 3-5 years, making them a good potential bet for investing.

It also highlighted that mid and small-cap stocks have delivered a robust return over the past five years.

"SMID offers a compelling mix of growth potential, valuation, comfort and supportive macro trends, making it a strong candidate for investment," Manish Sonthalia, Director and Chief Investment Officer, EIML, said.

As of March 2025, small-cap and mid-cap mutual funds (MFs) together constitute over 30 per cent of total equity flows, a jump from 5 per cent year-on-year.