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Ventura Wealth Clients
2 min Read

The JM Small Cap Fund, a new fund offer (NFO) by JM Financial Mutual Fund, presents a promising opportunity for investors looking to capitalise on the growth potential of small-cap stocks. Let's dive into the specifics of this new offering and understand its potential benefits and risks.

Key details of the JM Small Cap Fund NFO

Fund Name: JM Small Cap Fund (Regular Plan - Growth)  

Fund House: JM Financial Mutual Fund  

NFO Period: [Specify Dates]  

Benchmark Index: S&P BSE 250 Small Cap Total Return Index  

Minimum Investment Amount: ₹5,000  

Fund Manager: Mr. Satish Ramanathan

Investment objective

The primary objective of the JM Small Cap Fund is to generate long-term capital appreciation by predominantly investing in a diversified portfolio of small-cap stocks. Small-cap companies are those with smaller market capitalisation, typically offering higher growth potential but also higher volatility compared to large and mid-cap companies.

Why consider the JM Small Cap Fund?

1. Growth Potential: Small-cap stocks are often in the early stages of their growth cycle, offering significant upside potential. These companies can benefit from innovative products, expanding market reach, and improved operational efficiencies.

2. Diversification: Investing in small-cap funds can provide diversification to an investor's portfolio, as these stocks may not correlate directly with large-cap or mid-cap stocks.

3. Experienced Management: The fund is managed by Mr. Satish Ramanathan, who brings extensive experience and a deep understanding of market dynamics, ensuring strategic selection of high-potential small-cap stocks.

Risks associated

1. Volatility: Small-cap stocks are inherently more volatile compared to their larger counterparts. This means higher risk and the possibility of significant price fluctuations.

2. Liquidity Issues: Small-cap stocks can have lower trading volumes, potentially making it difficult to buy or sell positions without affecting the stock price.

3. Market Risk: As with any equity investment, market conditions can impact the performance of the fund. Economic downturns, regulatory changes, and other macroeconomic factors can influence returns.

Who should invest in the JM Small Cap Fund?

The JM Small Cap Fund is suitable for investors with a high-risk tolerance seeking substantial long-term capital gains from their mutual funds investment. It’s ideal for those who have a longer investment horizon and can withstand market volatility.

How to invest in the JM Small Cap Fund

Investors can subscribe to the JM Small Cap Fund NFO through various channels, including online platforms, financial advisors, and directly through the fund house. The minimum investment amount for this fund is ₹5,000, making it accessible to a wide range of investors.


The JM Small Cap Fund NFO offers a compelling opportunity to tap into the growth potential of small-cap companies. With its focus on long-term capital appreciation and strategic stock selection, it could be a valuable addition to a diversified investment portfolio. However, potential investors should carefully consider their risk tolerance and investment horizon before committing.