25 high-conviction picks from 500 small and microcap stocks. Rules only.
The combined Nifty Smallcap 250 and Microcap 250 universe gives the model 500 stocks to rank each month. The top 25 — capped at 3 per industry — are selected and held in equal weight. Small and microcap stocks are genuinely different from large-cap, so the model uses a proprietary multi-factor framework purpose-built for this segment's liquidity dynamics.
The 5-year backtest delivered 46.9% CAGR — one of the highest of MindForge's strategies — against a 16.88% Nifty Smallcap 250 benchmark. Maximum drawdown was -24.4%, reflecting the higher volatility inherent in the small and microcap segment. The Sharpe ratio of 1.32 shows this additional risk was historically well-compensated.
500-stock universe
Smallcap 250 + Microcap 250 — India's broadest listed segment. Both constituent lists fetched live from NSE each cycle.
Multi-factor scoring
A proprietary factor blend tuned for small- and microcap behaviour ranks every stock each month. Composition and weighting are MindForge IP.
Equal-weight, sector-capped
Every name carries the same weight; no industry takes more than 3 of the 25 slots. The portfolio stays structurally diversified.
High risk, high reward
Among the highest expected returns of MindForge's strategies. Recommended investment of ₹25L and genuine tolerance for -25% drawdowns.
Full performance analysis
Backtest period: May 2021 → Jul 2026 · Benchmark: Nifty Smallcap 250 · 46.9% CAGR vs 16.88% benchmark · Sharpe 1.32 · Max drawdown -24.4%. Simulated performance, not live trading. Past performance is not indicative of future returns. This strategy carries significant risk.