Fund Analysis
Abakkus Small Cap Fund: What Is It Actually Doing Differently?
The fund is only a few months old, which makes long-term performance comparisons meaningless for now. Its portfolio, however, is already telling us plenty about how Abakkus is approaching small-cap investing.
Abakkus Small Cap Fund is too young for the usual three-year and five-year performance comparisons.
That does not mean there is nothing to analyse.
In fact, a new fund gives us a different opportunity.
Instead of starting with a return chart, we can look directly at how the portfolio is being built.
As of 30 June 2026, Abakkus Small Cap Fund held 61 stocks. About 79% of the total portfolio was in small caps, while its disclosed active share stood at 86.06%.
The top ten stocks accounted for only 17.59% of the portfolio.
Those three numbers already tell us something.
This is not a small portfolio built around a handful of concentrated bets. It is a relatively broad portfolio, but one that still looks materially different from its benchmark.
The more interesting question is where those differences are coming from.
That is what we examine here.
Abakkus Small Cap Fund in 30 seconds
First, this is actually a small-cap portfolio
Small-cap mutual funds must predominantly invest in small-cap stocks. Their mandate requires at least 65% of total assets to be invested in equity and equity-related instruments of small-cap companies.
But managers still have room to allocate the remaining portion elsewhere. Here is the fund's market-cap positioning as of June 30, compared with its benchmark:
The insight here is structural. Abakkus had less exposure to small caps than the benchmark itself.
It simultaneously held some large-cap exposure and a meaningful allocation outside listed equity — both included in the market-cap split above as their own categories.
This is not necessarily good or bad. It is a portfolio construction choice. Some managers prefer to hold small-cap allocations as close to 100% as possible; others prefer the liquidity buffer or stability of large caps and cash.
61 stocks, but surprisingly little concentration
We noted that the fund held 61 stocks in June. A 61-stock portfolio might initially sound highly diversified.
But simply counting stocks does not tell the entire story.
Position sizes matter.
With less than one-fifth of assets in the top ten holdings as of June 30, no single group of stocks dominated the portfolio.
This makes the fund structurally different from a concentrated small-cap strategy built around 20 or 25 major positions.
86% active share: where things get more interesting
Active share measures how different a fund's holdings and weights are from its benchmark.
A high number does not automatically mean a better fund.
It tells us that the manager is making meaningful decisions away from simply replicating the index.
An 86.06% active share is therefore an important clue about how Abakkus is constructing this portfolio.
It gives us a reason to examine where the differences actually sit.
Where Abakkus differs from the benchmark
This is the type of information that a headline return number cannot show.
Two funds can both belong to the Small Cap category while taking very different sector exposures.
That difference eventually becomes one of the drivers of relative performance.
Sector Divergence
The industry bets are even more revealing
Zooming in from broad sectors to specific industries highlights where Sanjay Doshi is making active choices.
The June portfolio was overweight in several specific areas:
- IT Software +4.16 pp
- Banks +4.14 pp
- Industrial Products +2.18 pp
- Retailing +2.07 pp
- Commercial Services & Supplies +1.57 pp
Conversely, the fund carried meaningful underweights in these industries:
- Finance -5.04 pp
- Chemicals & Petrochemicals -4.12 pp
- IT Services -2.55 pp
- Automobiles -2.20 pp
What does the fund actually own?
The June portfolio included exposures across Industrial Products, Banks, Pharmaceuticals & Biotechnology, Auto Components, IT Software, Capital Markets, Construction, Healthcare Services, Consumer Durables, Retailing and other industries.
Here are selected holdings that illustrate the shape of the portfolio.
| Company | Industry | Weight |
|---|---|---|
| Dr. Lal Path Labs | Healthcare Services | 1.96% |
| Welspun Corp | Industrial Products | 1.92% |
| Computer Age Management Services | Capital Markets | 1.91% |
| International Gemological Institute | Consumer Durables | 1.77% |
| Karur Vysya Bank | Banks | 1.74% |
| ZF Commercial Vehicle Control Systems India | Auto Components | 1.72% |
| Gabriel India | Auto Components | 1.65% |
The portfolio changed again in July
According to Abakkus Mutual Fund's official Monthly Portfolio Statement as on 31 July 2026, the portfolio continues to evolve.
The July portfolio contains 62 listed equity holdings.
The equity and equity-related portion was 87.99% of net assets. The portfolio also held money-market instruments and TREPS / reverse repo.
New in July
According to comparison of the official June 30 and July 31 portfolio disclosures, the following names appeared in the July portfolio after not being present in the June month-end portfolio:
No longer in the July portfolio
Present in the June month-end portfolio but absent from the 31 July portfolio:
Some positions changed materially
A change in portfolio weight between two months can happen because of buying or selling, share-price movement, changes in overall fund assets, or a combination of these.
For example, comparing June 30 with July 31:
- Container Corporation of India increased in portfolio weight.
- PG Electroplast increased in portfolio weight.
- Tanla Platforms increased in portfolio weight.
- Cemindia Projects fell materially in portfolio weight.
- Avalon Technologies fell in portfolio weight.
- PNB Housing Finance fell in portfolio weight.
July's largest positions look very different from a concentrated portfolio
At the time of the July disclosure, some of the larger individual positions included the following names. Notice that none exceed a 2% weight, reinforcing the diversified nature of this small-cap strategy.
| Company | Weight |
|---|---|
| Dr. Lal Path Labs | 1.98% |
| Welspun Corp | 1.92% |
| Computer Age Management Services | 1.84% |
| International Gemological Institute | 1.77% |
| Karur Vysya Bank | 1.77% |
| ZF Commercial Vehicle Control Systems India | 1.74% |
| Star Health | 1.67% |
| Gabriel India | 1.66% |
| IIFL Finance | 1.66% |
| Sansera Engineering | 1.62% |
One month tells us more about behaviour than performance
With such a young scheme, one of the most useful things investors can observe is how the manager behaves.
Does the portfolio become more concentrated? Does cash get deployed? Do benchmark differences persist? Are new positions gradually built or rapidly rotated? Do sector bets remain stable? Does the portfolio remain genuinely active as assets grow?
These questions become increasingly useful as more monthly portfolios become available.
What we would watch from here
1. Cash deployment
June included a meaningful allocation outside equity. July still contained a material allocation to TREPS and other short-term instruments. Watch whether this reduces as the fund matures.
2. Active share
86.06% as of 30 June. Watch whether the portfolio continues to remain materially differentiated from the benchmark.
3. Portfolio breadth
61 stocks in June. 62 listed equity holdings in July. Watch whether the portfolio continues to expand as AUM grows.
4. Sector positioning
IT, industrials and banking were important relative positions in June. Watch whether those preferences persist.
5. Portfolio churn
Monthly additions and exits can help reveal how rapidly the portfolio evolves.
So, what is Abakkus doing differently?
It is still far too early to judge Abakkus Small Cap Fund through a full market cycle.
But its early portfolio gives us several things to follow.
The fund was meaningfully different from the Nifty Smallcap 250 TRI as of June. Its disclosed active share was high. Its top holdings were individually modest in size. Its sector and industry positioning contained clear deviations from the benchmark.
And the July portfolio already shows that the portfolio is continuing to evolve.
None of that tells us what the fund will return.
It does tell us that simply comparing its NAV with another small-cap fund misses much of the story.
For DirectGrowth, that is precisely the interesting part.
Portfolio data can help explain how it happened.
Inside Abakkus
Don't stop at the top 10.
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