Potential growth tailwinds in Indian Economy.
	Opportunity to capitalize on Indian Entrepreneurship.
	Opportunity to capture market / economic cycles.
	Potential to create wealth and generate alpha over long-term.
	Small caps are generally under-researched and under-owned and hence provides an opportunity for stock-picking at reasonable valuations.
	Small Caps could be beneficiaries of structural reforms announced from time to time.
	Small caps also provide exposure to companies which are potential market leaders in the industries they operate in (a few examples include textile, paper, sugar, luggage) and have potential to become midcaps of tomorrow as they achieve scale

Fund may use following criteria for stock selection and aims to invest in growth-oriented businesses with focus on

	Strong Financials and cashflows
	Reasonable valuations
	Scalable Business model
	Emerging Business models
	Management track record
	Global trends

• Portfolio construction on bottom up stock selection basis.
  
  
• Key Overweight sector/Industries includes Auto Components, FMCG and Capital goods vs the Schemes’ Benchmark.
  
  
• Key Underweights sectors /Industries includes Chemicals, Healthcare and Consumer durables vs the Schemes’ Benchmark.
  
  
• Carrying Higher cash levels (~21% in the portfolio as tight monetary policy in India may continue a bit longer than expected ,following higher global policy rates and upside risks to domestic inflation.)
  

Data as on February 28, 2023

Instruments	Indicative Allocation (%of net assets)		Risk Profile
	Minimum	Maximum	High/Moderate/Low
Equity & Equity related instruments of Small Cap Companies#	65%	100%	Very High
Equity & Equity related instruments of other than Small Cap Companies	0%	35%	Very High
Debt and Money Market Securities (including TREPS (Tri-Party Repo), Reverse Repo)	0%	35%	Low to Moderate
Units issued by REITs & InvITs	0%	35%	Moderately High

The Scheme may take exposure in equity derivative instruments to the extent of 50% of the Equity component. Investment in derivatives shall be for hedging, portfolio balancing and such other purposes as maybe permitted from time to time under the Regulations and subject to guidelines issued by SEBI/RBI from time to time.

#Definition of Small Cap Companies: 251st company onwards in terms of full Market Capitalization.

Security	% to Net Assets
IDFC Limited	3.37%
United Spirits Limited	3.04%
Mahindra CIE Automotive Limited	2.67%
The Federal Bank Limited	2.67%
Exide Industries Limited	2.63%
Jindal Stainless (Hisar) Limited	2.49%
NLC India Limited	2.22%
Birla Corporation Limited	2.16%
Persistent Systems Limited	2.13%
Mrs. Bectors Food Specialities Limited	2.11%
Total	25.49%

Sector	MMSCF	S&P BSE 250 Small Cap TRI
Capital Goods	17.23%	14.40%
Financial Services	11.79%	14.59%
Automobile And Auto Components	9.97%	5.22%
Fast Moving Consumer Goods	8.25%	4.82%
Consumer Services	3.84%	4.86%

Data as on February 28, 2023

Investment Objective:
The investment objective of the Scheme is to generate long term capital appreciation by investing in a diversified portfolio of equity & equity related securities of small cap companies, However, there can be no assurance that the investment objective of the Scheme will be achieved.

Fund Manager:

Mr. Abhinav Khandelwal
Total Experience : 14 years
Experience in managing this fund: 2 Month (Managing since December 12, 2022)

Mr. Manish Lodha
Total Experience : 22 years,
Experience in managing this fund: 2 Month (Managing since December 12, 2022)

Date of allotment: December 12, 2022

Benchmark: S&P BSE 250 Small Cap TRI

Option: IDCW (IDCW Option will have IDCW Reinvestment (D) & IDCW Payout facility) and Growth (D) D-Default

Application Amount: Rs. 1,000 and in multiples of Re. 1/- thereafter

Minimum Weekly & Monthly SIP Amount: Rs 500 and in multiples of Rs 1/- thereafter

Minimum Weekly & Monthly SIP Installments: 6

Minimum Quarterly SIP Amount: Rs 1,500 and in multiples of Rs 1/- thereafter

Minimum Quarterly SIP installments: 4

Monthly AAUM as on February 28, 2023 (Rs. in Cr.): 552.72

Monthly AUM as on February 28, 2023 (Rs. In Cr.): 558.30

Entry Load: Not applicable

Exit Load: • An Exit Load of 0.5% is payable if Units are redeemed / switched-out upto 3 months from the date of allotment;
• Nil if Units are redeemed / switched-out after 3 months from the date of allotment.
Redemption /Switch-Out of Units would be done on First in First out Basis (FIFO).

Data Source: ICRA. Data period: 1st January, 2006 till 28th February, 2023. Returns are absolute returns (1 year) calculated as of the last business day of every calender year end (For the CY 2022, the data for the period 1st January, 2022 to 28th February, 2023 has been given). The data provided above is for illustrative purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Mahindra Manulife Investment Management Private Limited/Mahindra Manulife Mutual Fund is not guaranteeing or forecasting any returns. Past performance may or may not be sustained in future.