Helios Midcap Fund NFO review

Helios Mutual Fund , one of the newest entrants in India's asset management space and backed by veteran investor Samir Arora, has launched its fourth equity scheme—the Helios Midcap Fund . Its NFO opened for subscription on February 20, 2025, and will remain open until March 6, 2025.

Helios Midcap Fund's investment strategy

As per the scheme presentation, Helios Midcap Fund will follow a strict elimination-based approach to stock selection. Each company is assessed on eight key factors: Corporate governance, Capital allocation, Leverage, Cash flow, Return on capital employed (ROCE), Earnings growth, Valuation and Industry structure. They are then rated as Good, Not Bad or Bad.

A 'Bad' rating on any of the top six factors leads to immediate elimination, while a 'Bad' rating on the last two factors delays consideration. Only companies with a 'Good' or 'Not Bad' rating on all factors qualify for investment. This disciplined strategy filters out weaker companies early, ensuring a portfolio of fundamentally strong mid-cap stocks.

About the fund managers

Alok Bahl, CIO at Helios Capital AMC, brings 32 years of experience and has been a key part of Helios since its inception in 2005.

Pratik Singh, with eight years in institutional equity research, previously covered capital goods and consumer durables at Motilal Oswal.

Together, they manage Helios Flexi Cap, Financial Services, and Large & Mid Cap funds, with the mid-cap fund being their latest addition.

Other schemes of Helios Mutual Fund

Helios Mutual Fund currently manages five active schemes—three equity ( Helios Flexi Cap Fund , Helios Large & Mid Cap Fund and Helios Financial Services ), one debt ( Helios Overnight Fund ) and one hybrid ( Helios Financial Services Fund )—with a combined AUM of Rs 3,372 crore. Helios Flexi Cap Fund holds the lion's share with Rs 2,549 crore, making up about 76 per cent of the AMC's total assets.

Since none of the three equity funds have completed three years in the market, their long-term performance remains untested. However, they have held up relatively well in the short term.

The Financial Services Fund, launched in June 2024, has delivered -2.84 per cent, outperforming the category average of -5.14 per cent since inception. The Large & Mid Cap Fund, introduced in October 2024, has returned -8.20 per cent, slightly better than the category average of -9.66 per cent over the same period.

Meanwhile, the early signs of Helios Flexi Cap Fund also look impressive. Launched in November 2023, the fund has demonstrated resilience , performing well in both upcycle and the ongoing downcycle.

Should you invest in Helios Midcap Fund?

While Samir Arora doesn't directly manage Helios Midcap Fund, the AMC operates under his leadership, adhering to his investment philosophy and expertise. Despite being a relatively new player in the Indian mutual fund space, Helios Mutual Fund benefits from Arora's strong track record.

The fund follows an elimination-based approach, weeding out weaker companies early to focus on fundamentally strong mid-cap stocks. However, as a newly launched fund, it lacks a long-term performance history, making it one to watch rather than rush into.

Also read: Ask these three questions before investing in an NFO