15 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 15 — capped at 2 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, after 20% short-term capital-gains tax, 39.6% CAGR — one of the highest of MindForge's strategies — against a 13.41% Nifty Smallcap 250 benchmark. Maximum drawdown was -22.5%, reflecting the higher volatility inherent in the small and microcap segment. The Sharpe ratio of 1.52 shows this additional risk was historically well-compensated.
Ours pays 20% short-term capital-gains tax every month it books a profit, because it rebalances monthly. The funds and the index are bought once and held, so they pay 12.5% long-term once at exit on gains above ₹1,25,000. Fund figures are Direct Plan trailing returns, already net of their expense ratio.
Backtested, not live trading. Past performance is not indicative of future returns. The fixed-deposit line assumes interest taxed at a 30% slab.
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 2 of the 15 slots. The portfolio stays structurally diversified.
High risk, high reward
Among the highest expected returns of MindForge's strategies. Recommended investment of ₹15L and genuine tolerance for -25% drawdowns.
Full performance analysis
Gross of tax These charts and the month-by-month grid show the model’s own curve, before tax — that is what a backtest produces. Every headline figure on this page is stated after 20% short-term capital-gains tax: 59.4% gross becomes 39.6% after tax.
Left pair: share of all 61 months. Right pair: their own shared scale — the bigger move fills its track and the other draws its true fraction of it.
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Year | vs index |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | −6.9 | +9.6 | −0.3 | +16.0 | +22.4 | +44.4 | +36.6 | |||||||
| 2022 | +6.7 | −15.1 | +16.0 | +6.9 | −11.2 | −0.7 | +6.9 | +8.8 | −0.3 | +2.4 | −0.4 | −4.7 | +11.8 | +15.4 |
| 2023 | −3.7 | −10.5 | +1.2 | +9.4 | +12.0 | +9.7 | +20.5 | +9.8 | +5.0 | +11.0 | +11.6 | +6.8 | +115.5 | +67.4 |
| 2024 | +16.6 | +7.3 | −3.9 | +16.1 | +2.7 | +8.6 | +8.5 | +8.6 | +14.7 | −4.0 | +5.5 | +2.1 | +117.6 | +91.2 |
| 2025 | −11.2 | −12.7 | +10.0 | −4.1 | +13.3 | −0.5 | −3.5 | +2.3 | +1.7 | +1.7 | −1.5 | +3.4 | −4.1 | +1.9 |
| 2026 | −4.9 | +9.0 | −7.4 | +19.1 | +7.7 | +11.3 | −4.8 | +13.0 | +47.6 | +37.5 |
Every figure above is computed from the same simulated equity curve as the CAGR on this page — month-end to month-end, model portfolio versus the Nifty Smallcap 250, no costs or slippage assumed. vs index is the calendar-year gap in percentage points. 2021 and 2026 are part years — their totals cover only the months shown. Backtested, not live trading. Past performance is not indicative of future returns.
Backtest period (all figures after tax): May 2021 → Jul 2026 · Benchmark: Nifty Smallcap 250 · 39.6% CAGR vs 13.41% benchmark · Sharpe 1.52 · Max drawdown -22.5%. Simulated performance, not live trading. Past performance is not indicative of future returns. This strategy carries significant risk.