Helios Small Cap Fund

Helios Small Cap Fund delivered a 1Y SIP XIRR of 26.87%, comfortably ahead of the category average SIP XIRR of 17.78%. Against the NIFTY SMALLCAP 250, the fund posted a 1Y CAGR of 11.73% versus the benchmark's 5.11%, generating an alpha of 6.52%. Calendar year returns were mixed, with 14.58% in 2026 following a -2.09% decline in 2025.

The fund exhibits a beta of 0.93, meaning it moves slightly less than the benchmark in both directions, with an upside capture of 97.47% and a downside capture of 90.42% — a favorable asymmetry that supports its positive alpha. Only one drawdown event exceeding 10% has been recorded, with a maximum drawdown of just -0.17% that recovered in 44 days, indicating limited recent stress. However, the modest long-term CAGRs (e.g., 3.77% over 3Y) suggest returns have been uneven across longer windows.

The portfolio holds 83 stocks with a well-diversified top 10, where the largest position, Ather Energy, is only 2.32% of NAV, limiting single-stock concentration risk. Sector allocation is spread across Auto Components (10.2%), Healthcare Services (6.2%), Capital Markets (5.6%), Industrial Products (5.4%), and Electrical Equipment (4.9%), with meaningful exposure to newer-economy names like Shadowfax, One 97 Communications, and Amagi Media Labs. This breadth reduces idiosyncratic risk but also means returns will track broader small-cap trends closely.

On the primary SIP metric, the fund's 1Y XIRR of 26.87% clearly outpaces the category average of 17.78%, positioning it in the upper tier of small-cap peers over the recent period. Its consistent positive alpha across the 1Y (6.52%), 3Y (1.77%), and 5Y (0.86%) windows versus the benchmark indicates persistent benchmark outperformance, though the alpha narrows over longer horizons. The low downside capture suggests a defensive tilt within the small-cap category.

This fund suits investors seeking small-cap exposure with a moderately defensive profile, given its below-1 beta and superior downside capture. Small-cap investing demands a long time horizon of at least 5-7 years and tolerance for interim volatility, as evidenced by the negative 2025 calendar return. It is appropriate as a satellite allocation within a diversified portfolio rather than a core holding, ideally accessed via SIP to smooth entry points.

• 1Y SIP XIRR of 26.87% significantly exceeds the category average of 17.78%
• Favorable capture asymmetry with 97.47% upside capture versus 90.42% downside capture, driving positive alpha of 6.52% over 1Y
• Highly diversified portfolio of 83 stocks with no single holding above 2.32% of NAV

• Long-term lump-sum CAGRs are modest (3.77% over 3Y, 2.24% over 5Y), indicating weak absolute compounding over extended periods
• Negative calendar year return of -2.09% in 2025 highlights the volatility inherent in small-cap investing