Helios Small Cap Fund

Helios Small Cap Fund has outperformed the NIFTY SmallCap 250 benchmark across all measured periods, with a 1Y Fund CAGR of 15.31% versus the benchmark's 9.4%, generating alpha of 6.16% over 1Y. However, alpha narrows considerably over longer horizons, declining to just 0.05% over 10Y and turning negative (-0.16%) over 15Y. SIP XIRR data is not available for the fund, so a like-for-like comparison with the category average SIP XIRR of 21.59% (1Y) cannot be made.

The fund exhibits a beta of 0.91, meaning it moves slightly less than the benchmark in both directions, with a downside capture of 89.87% versus an upside capture of 97.26% — a favorable asymmetry that supports risk-adjusted outperformance. Maximum drawdown is very shallow at -0.17% with a 112-day duration and a 44-day recovery, though only one drawdown event exceeding 10% has been recorded. These metrics suggest the fund has managed downside risk well relative to the small cap category's typically high volatility.

The portfolio is well diversified across 81 holdings, with the top position, Shadowfax Technologies, at just 2.5% of NAV and the entire top 10 accounting for under 20% of assets. Sector exposure is spread across Auto Components (10.7%), Capital Markets (7.2%), and Healthcare Services (6.2%), with no single sector dominating. Holdings span consumer-facing, technology, and industrial themes, including newer-economy names like Ather Energy and One 97 Communications alongside established players like Page Industries and Phoenix Mills.

Without the fund's own SIP XIRR, direct comparison to category averages (21.59% at 1Y, 22.67% at 3Y) is not possible, which limits peer benchmarking. Against its benchmark, the fund shows consistent outperformance in recent periods, with alpha of 6.16% (1Y), 1.52% (3Y), and 0.68% (5Y), though this edge fades over longer windows. The 2025 calendar year return of -2.09% followed by a strong 18.25% in 2026 reflects the inherent volatility of the small cap segment.

This fund suits investors with a high risk tolerance and a long time horizon of at least 5-7 years, as small cap funds experience significant interim volatility. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, given the shallow but real drawdown history. Investors should be comfortable with periods of negative returns, such as the -2.09% calendar year return in 2025, and should invest via SIP to smooth entry points.

• Consistent benchmark outperformance with alpha of 6.16% over 1Y and positive alpha across 1Y, 3Y, 5Y, 7Y, and 10Y periods
• Favorable capture asymmetry with downside capture of 89.87% versus upside capture of 97.26%, indicating better-than-benchmark loss protection
• Highly diversified portfolio of 81 holdings with a low top-holding concentration of just 2.5% of NAV

• Alpha diminishes sharply over longer horizons, falling to 0.05% over 10Y and turning negative at -0.16% over 15Y, raising questions about sustained long-term outperformance
• SIP XIRR data is unavailable, preventing like-for-like comparison with the category average SIP XIRR of 21.59% (1Y) and limiting full performance evaluation