Mumbai: Ashika Investment Managers Pvt. Ltd. has received approval from SEBI to launch the Ashika Mid & Small Cap Fund, an open-ended Category III Alternative Investment Fund (AIF). The fund is now open for subscription. It aims to invest in India’s most promising mid- and small-cap companies-businesses that are on the path toward strong growth, better profitability, and wider market recognition.
Focus on the 3Rs: Right Valuation, Right Vision, Right Time
The fund uses Ashika’s proprietary 3R framework, which looks for companies that are fairly valued, have a strong long-term vision, and show clear signs of growth at the right time. The goal is to deliver medium- to long-term returns by focusing on businesses where earnings growth and valuation improvement are happening together, creating strong potential for wealth creation.
Investment Approach and Criteria
Ashika’s strategy focuses on scalable companies with solid governance, strong return ratios, healthy balance sheets, and visible growth potential. The fund prefers businesses with:
- Market capitalisation above Rs 2,000 crore
- ROCE above 15 percent
- Growth potential above 20 percent
Manageable debt levels and reasonable valuations
This disciplined method helps identify companies capable of long-term, sustainable value creation.
India’s Mid & Small Cap Opportunity
India’s mid- and small-cap sector is seeing major changes driven by manufacturing expansion, rising consumption, formalisation of businesses, and increasing digital adoption. The fund aims to benefit from these trends through deep research, data analysis, and high-conviction stock selection.
Leadership Speak
Ajay Arora, Co-CEO of Ashika Investment Managers, said that mid and small caps represent one of India’s strongest transformation stories. Many companies in this space are now achieving scale and profitability that were not visible a decade ago. He said the fund aims to give investors early access to future category leaders.
Paras Bothra, CIO and Fund Manager, explained that the focus is on companies with improving earnings, strong balance sheets, and industries that support long-term growth. He stressed that selectivity is crucial in the mid-small cap space, and the fund will rely on deep research and careful valuations.
Technology-Driven Selection
The fund will also use advanced technology and data science to identify high-potential companies-“the golds of tomorrow”-reflecting Ashika’s vision that “the future is now.”
