While the broader Indian equity market grappled with high volatility and most small-cap mutual funds bled red in the past one year, the TRUSTMF Small Cap Fund has scripted a remarkable success story. Launched on 4th November 2024, the fund has clocked an impressive ~10% CAGR in its very first year – a period when even benchmark small-cap indices ended in negative territory.
Small-Cap Category Witnessed Its Worst Phase in Recent Years
Data from ICRA Mutual Fund Intelligence reveals a grim picture for the small-cap category:
- Out of 29 small-cap funds, 16 schemes delivered negative returns over the past year
- Tier-1 small-cap benchmark indices posted negative returns
- Majority of established small-cap funds struggled to protect capital amid sharp corrections
This backdrop makes TRUSTMF Small Cap Fund’s performance even more extraordinary.
What Sets TRUSTMF Small Cap Fund Apart?
The fund follows a unique “Growth at Reasonable Valuation (GARV) + Terminal Value Investing” philosophy that focuses on:
- Rare and enduring business models
- Dominant and resilient companies
- High-conviction bets with high active share for alpha generation
- Strict adherence to small-cap mandate without style drift
This disciplined, differentiated approach enabled the fund to not just protect capital but generate meaningful positive returns when most peers were deep in the red.
Key Highlights of TRUSTMF Small Cap Fund Performance (as of Nov 2025)
| Parameter | TRUSTMF Small Cap Fund | Category Average | Benchmark |
| 1-Year CAGR | ~10% | Negative | Negative |
| Rank among 29 small-cap funds | Top quartile | – | – |
| Active Share | High | – | – |
| Portfolio Concentration | High-conviction | – | – |
Why Investors Are Taking Notice
In an environment where SEBI has repeatedly cautioned about froth and valuation risks in small and mid-cap segments, TRUSTMF Small Cap Fund has proven that true active management with a robust process can still deliver superior risk-adjusted returns even in the most adverse market windows.
Commenting on the performance, the fund house emphasized:
“Our GARV + Terminal Value framework is designed for exactly such volatile phases. We stay focused on businesses that compound wealth over decades, not just trade on momentum.”
Should You Consider TRUSTMF Small Cap Fund?
For long-term investors willing to stomach short-term volatility, the fund presents a compelling proposition:
- Proven resilience in one of the worst years for small-caps
- Distinct portfolio (high active share) vs benchmark-hugging peers
- Experienced team with a clear, consistent philosophy
- Strong early track record despite being a new fund
Category: Small Cap Fund
Launch Date: 4th November 2024
Benchmark: Nifty Smallcap 250 TRI (Tier I)
Fund Managers: Experienced team with focus on quality growth at reasonable valuations
Risk Factors: Small-cap funds are subject to high volatility and are suitable only for investors with high risk appetite and a minimum 5–7 year investment horizon.
If you're looking for a small-cap fund that has already demonstrated its mettle in tough times, TRUSTMF Small Cap Fund deserves a spot on your watchlist.
For latest NAV, fact sheet, and detailed performance, visit the official TRUSTMF website or authorized platforms.
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