Carnelian Mutual Fund’s maiden scheme, Carnelian Small Cap Fund, received 30,562 applications amounting to ₹632 crore during its New Fund Offer (NFO), which closed on October 30, 2026, according to the fund house.
The average application size was around ₹2.07 lakh, while 45% of the applications came from outside the top 30 cities (B30), indicating participation from smaller cities and towns.
The NFO also saw participation from 1,430 distribution partners across 275 cities. About 21% of the applications were for systematic investment plans (SIPs), the fund house said.
Units are scheduled to be allotted on November 5, and the scheme will reopen for continuous subscriptions and redemptions from November 9.
The scheme will invest 65-100% of its assets in equity and equity-related instruments of small-cap companies. It has set an asset under management (AUM) cap of ₹5,000 crore. Once this limit is reached, fresh lump-sum investments and switch-ins will be stopped, while SIP investments will continue.
Commenting on the response, Vikas Khemani, Founder and Chairman of Carnelian Asset Management, said the small-cap segment offers opportunities in emerging businesses and sectors. He said the fund house would focus on research and the fundamentals of companies.
Rajkumar Dhiman, CEO of Carnelian Mutual Fund, said research and valuation discipline were important in evaluating companies in the small-cap segment.
Small-cap funds invest predominantly in companies ranked below the top 250 listed companies by market capitalisation. These funds can be more volatile than large-cap funds and carry higher liquidity and market risks, making investment horizon and risk appetite important considerations for investors.