Introducing Mutual Fund smallcases by Windmill Capital

Windmill Capital is rolling out Mutual Fund smallcases, a new category of portfolios built entirely with equity mutual funds. Instead of stocks or ETFs, these baskets hold carefully chosen direct-plan funds, extending the smallcase approach of research-backed diversification into India’s most familiar investment vehicle. For investors, this means a simple, transparent way to access different segments of the equity market through mutual funds, while retaining the discipline and structure smallcases are known for.

The lineup begins with Largecap Mutual Fund Picks, designed for stability and long-term wealth creation, alongside curated options in Midcap, Flexi Cap, Multi Cap, and Small Cap categories.

Why this idea

New product category: Mutual Fund Picks extend the smallcase basket approach to mutual funds, giving investors more ways to diversify beyond stocks and ETFs.
Market-cap focus: Each Mutual Fund Picks smallcase is built around a distinct segment of India’s equity market. Largecaps offer stability, midcaps balance growth with resilience, smallcaps provide higher-risk, higher-reward potential, while flexi and multi-cap funds blend these exposures in different ways. This gives investors the flexibility to choose the risk-return profile that fits their goals.
Quality filters: Only growth-oriented, direct-plan funds with proven track records are considered, ensuring lower costs and consistency.
SIP-friendly design: Every fund supports SIPs, making it simple to invest systematically with small amounts. Combines the convenience of a diversified portfolio with the benefits of rupee-cost averaging.
Experienced-only funds: We include only schemes with at least 3 years of history, ensuring they’ve weathered different market phases.

What it offers

Diversification: Each smallcase holds three-four carefully chosen mutual funds from its category. This spreads exposure across fund managers and underlying stocks, reducing dependence on any single scheme.
Lower volatility: Blending funds smooths out performance, limiting the impact of sharp swings from one fund and reducing drawdowns over time.
Focus on risk-adjusted performance: Funds are selected based on consistent risk-adjusted returns relative to their category, to provide competitive performance within their segment.
Research-backed curation: Portfolios are built by Windmill Capital’s SEBI-registered analysts, using a robust, data-driven framework tested across 100+ performance and risk factors.

How it works

Fund screening: We begin with the universe of mutual funds in the chosen category (large, mid, small, flexi, or multi-cap). Only growth-oriented, direct-plan schemes with SIP facility and at least 3 years of track record are eligible.
Data-driven ranking: Funds are assessed using NAV history across a broad set of risk-return metrics such as Sharpe, Sortino, Omega, and capture ratios.
Risk filters: To avoid hidden weaknesses, additional checks are applied on skew, drawdown recovery, and downside capture.
Final selection: The three best-scoring funds are chosen and given equal weights, keeping the portfolio balanced and straightforward.
Rebalancing: Portfolios are monitored continuously and updated on a need-basis, only when changes are required to preserve quality and performance.
Transparent process: Investors can see how each fund contributes to the portfolio and track the smallcase’s performance and risk metrics on the smallcase platform.

With this framework in place, Windmill Capital has launched five distinct Mutual Fund Picks smallcases; each aligned to a specific market-cap segment or allocation style, so investors can choose the approach that best matches their goals.

Largecap Mutual Fund Picks

A portfolio of actively managed largecap funds, this smallcase is designed for stability and consistent wealth creation. It focuses on funds investing in India’s top 100 companies by market capitalisation, aiming to deliver returns that can outpace the largecap category through disciplined, data-driven selection. It suits investors looking for a dependable, low-volatility foundation in their equity allocation.

Midcap Mutual Fund Picks

This smallcase curates midcap funds that invest in India’s 101st to 250th-ranked companies. Built for investors who can handle higher short-term swings, it offers stronger long-term growth potential than largecaps. The selection balances risk-adjusted return potential with careful monitoring of style consistency, making it a fit for those seeking higher growth with measured risk.

Smallcap Mutual Fund Picks

Focused on funds investing in companies ranked 251st and beyond by market capitalization, this smallcase is designed for investors with high risk appetite and long horizons. It targets aggressive wealth creation through exposure to emerging, high-growth businesses, while applying robust research filters to manage risks inherent in smallcap investing.

Multicap Mutual Fund Picks

Multicap funds maintain a fixed allocation across large, mid, and small caps. The portfolio combines multiple high-quality multicap funds, providing a structured spread across market segments while keeping the allocation aligned with long-term objectives.

Flexicap Mutual Fund Picks

Flexicap funds have the flexibility to adjust allocations across large, mid, and small caps based on their mandates. The portfolio blends multiple high-quality funds to provide diversified exposure across market segments while maintaining risk oversight.

The Road Forward

By launching Mutual Fund Picks smallcases, Windmill Capital is bringing a new dimension to how retail investors can use smallcases. Whether it’s the stability of Largecap, the growth potential of Midcap and Smallcap, the balance of Multi Cap, or the flexibility of Flexi Cap, each basket offers a different way to participate in India’s equity markets through mutual funds.

Together, they give you professionally researched, SIP-ready portfolios that combine diversification, discipline, and simplicity. It’s an easy way to explore mutual funds with the same transparency and control that smallcases are known for.

👉 Explore Mutual Fund Picks smallcases

_{Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.}

_{The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy/sell any security or financial products.Users must make their own investment decisions based on their specific investment objective and financial position and using such independent advisors as they believe necessary.}

_{Windmill Capital TeamWindmill Capital Private Limited is a SEBI registered research analyst (Regn. No. INH200007645) based in Bengaluru at No 51 Le Parc Richmonde, Richmond Road, Shanthala Nagar, Bangalore, Karnataka – 560025 creating Thematic & Quantamental curated stock/ETF portfolios. Data analysis is the heart and soul behind our portfolio construction & with 50+ offerings, we have something for everyone. CIN of the company is U74999KA2020PTC132398. For more information and disclosures, visit our disclosures page here.}