MICROCAP

Microcap

50 stocks. Nifty Microcap 250 universe. Fortnightly rotation. CAGR 40.22%. Sharpe 1.52.

Updated 11 Jun 2026 Rebalances 2 weeks Next: 2026-05-25

Start with Microcap → View factsheet Rebalance history

0.2% on traded value · No AUM fee · No lock-in · Minimum ₹139903 · Capital stays in your own broker

CAGR

40.22%

Sharpe Ratio

1.52

Max Drawdown

-26.43%

Min Capital

₹139903

How It Works

Step 1 | Universe Start from Nifty Microcap 250 filtered to stocks priced under ₹5000.
Step 2 | Rank Score every stock in the universe by a momentum composite (price trend over multiple lookbacks, risk-adjusted). The top names by score become the candidate list.
Step 3 | Select Hold the top 50 names by score. Equal-weight across the book so no single name dominates.
Step 4 | Rebalance Every 2 weeks the model re-runs end-to-end. Names that fall out of the top 50 are sold; new entrants are bought. You see the full holdings list at every rebalance.

Who This Is For

Suitable for

investors who want growth but read a 25 percent drawdown as opportunity not panic

Suggested allocation

20 to 40 percent of equity capital

Time horizon

5 years or longer. Drawdowns of 26% have happened in the backtest and can happen again. Capital you might need within 12 months should not be here.

Capital required

₹139903 minimum. This buys roughly one share of every holding at current prices. Investing more buys fractions of additional units and tightens the model's expected behaviour.

Strategy Configuration

Universe

Nifty Microcap 250

Holdings

50 stocks

Rebalance

2 weeks

Risk Level

Moderately High

Benchmark

Nifty 50

Max Stock Price

₹5000

Live NAV | Backtested 2021 onwards

Microcap vs Nifty 50

Both indexed to 100 on inception. Hover for date-by-date NAV. Range chips to zoom; expand button for full window.

NAV indexed to 100 on inception (Jan 2021 or later). Backtested returns include realistic transaction costs. Past performance is not indicative of future results. Source: NSE BhavCopy.

Performance Metrics

Metric	Microcap	Nifty 50
CAGR	40.22%	9.80%
Cumulative Return	442.45%	59.62%
Sharpe Ratio	1.52	0.73
Max Drawdown	-26.43%	-16.92%
Volatility	24.09%	14.04%

Cost Decomposition

Gross Return

506.22%

Total Cost

63.77%

Net Return

442.45%

What this would have returned

Your amount run through Microcap's backtested monthly returns (2021-05-07 to now, after costs). A backtest, not a promise.

Invest ₹ per month

You put in

₹0

Backtested value

₹0

Gain

₹0

Over 61 months of backtested monthly returns, after estimated costs. Past performance is not indicative of future results. See the factsheet.

Worst 5 Drawdowns

Started	Recovered	Max DD	Duration (days)
2022-01-21	2022-08-19	-18.92%	210
2021-08-06	2021-09-24	-12.60%	49
2024-02-09	2024-03-29	-10.90%	49
2021-10-22	2021-12-03	-8.24%	42
2023-01-20	2023-04-07	-6.74%	77

Yearly Returns

2021

+42.1%

2022

+17.9%

2023

+92.8%

2024

+67.7%

2025

-7.3%

2026

+8.1%

Sector allocation

11 sectors represented in the equity sleeve. Largest concentration: Diversified at 40.3%. Equal-weighted at the stock level, so sector weights drift with which momentum names rank highest.

Diversified 40.3%

Capital Goods 14.7%

FMCG & Consumer 12.6%

Chemicals 8.2%

Power & Utilities 6.0%

IT & Technology 4.4%

Banking & Financial 4.4%

Auto & Components 3.5%

Realty & Construction 2.3%

Metals & Mining 2.2%

Pharma & Healthcare 1.5%

Sector rotation

132 rebalances . 12 sectors touched . 11 live today.

Darker cell . higher weight . blank . sector not held

Diversified

40%

Capital Goods

15%

FMCG & Consumer

13%

Chemicals

Power & Utilities

Auto & Components

Banking & Financial

IT & Technology

Metals & Mining

Pharma & Healthcare

Realty & Construction

Energy & Oil & Gas

out

202120222023202420252026

Equal weighted at the stock level . source rebalance CSV . sector map curated against NSE listings . 1 sector previously held now exited

Latest move . 2026-05-08 to 2026-05-11

Banking & Financial +1ppDiversified +11pp

Out

Energy & Oil & Gas out (was 2%)Power & Utilities -1ppFMCG & Consumer -3ppAuto & Components -2ppMetals & Mining -2ppPharma & Healthcare -2pp

tickers removed: KSB THANGAMAYL OSWALPUMPS AWFIS IMFA WAAREERTL RTNINDIA GAEL SHRIPISTON GOKEX MAHSEAMLES ASTRAMICRO ALIVUS LUMAXTECH KRBL STAR EPL AKUMS

Rotation events . shifts 10pp or more

2026-05-11 Diversified +11pp removed KSB, THANGAMAYL, OSWALPUMPS, AWFIS, IMFA, WAAREERTL, RTNINDIA, GAEL, SHRIPISTON, GOKEX, MAHSEAMLES, ASTRAMICRO, ALIVUS, LUMAXTECH, KRBL, STAR, EPL, AKUMS
2026-04-24 Diversified -19pp, Capital Goods +11pp added LLOYDSENT, EIEL, APOLLO, LLOYDSENGG, AZAD, OSWALPUMPS, AWFIS, HCC, KIRLPNU, WAAREERTL, RTNINDIA, SKIPPER, DIACABS, GOKEX, KRBL . removed ACUTAAS, BELRISE, CEIGALL, ZYDUSWELL, ANURAS, SHAILY, INGERRAND, BLACKBUCK, RATNAMANI, TI, GALLANTT, PTC, YATHARTH, PGIL, HEMIPROP, SANDUMA, FIEMIND
2026-04-10 Diversified -13pp added PFOCUS, WEBELSOLAR, CUPID, GOKULAGRO, KSB, TMB, JAYNECOIND, QPOWER, ELECTCAST, AKUMS, MAHSEAMLES, INOXINDIA, EPL, RENUKA, ANUP, PNGJL, ASKAUTOLTD, FEDFINA, PRAJIND . removed AZAD, VIYASH, EDELWEISS, FINEORG, GMRP&UI, MANORAMA, DIACABS

Current Holdings

48 positions as of 2026-05-11 rebalance. Allocation percentages reflect equal-weighted sleeve at rebalance day; current values drift with price.

STLTECH

2.0%

WEBELSOLAR

2.0%

CUPID

2.0%

QPOWER

1.8%

APOLLO

2.0%

JAYNECOIND

2.1%

HCC

2.1%

TDPOWERSYS

1.7%

KRN

1.8%

AZAD

1.5%

KIRLPNU

1.1%

BALAMINES

2.0%

JAIBALAJI

2.1%

SKYGOLD

1.9%

SKIPPER

2.0%

LLOYDSENT

2.1%

PTC

1.9%

LLOYDSENGG

2.1%

DIACABS

2.0%

GOKULAGRO

2.0%

ASHAPURMIN

1.9%

MIDHANI

1.8%

AVANTIFEED

1.9%

EIEL

2.1%

SANSERA

1.7%

INOXINDIA

2.0%

PFOCUS

2.0%

PRAJIND

2.0%

KTKBANK

2.0%

POWERMECH

1.7%

PARAS

1.8%

ANUP

1.4%

AETHER

1.7%

OPTIEMUS

1.8%

PRUDENT

2.0%

TIPSMUSIC

1.8%

TMB

2.0%

EMIL

2.1%

TANLA

1.9%

ADVENZYMES

1.9%

SHAILY

2.0%

DBREALTY

2.1%

MANORAMA

1.9%

LXCHEM

2.0%

EQUITASBNK

2.0%

BORORENEW

1.9%

JSFB

2.0%

PNGJL

1.8%

Want live quantities, prices, and book values? View live in the platform →

Why This Strategy

Fifty stocks from the Nifty Microcap 250 universe, equal-weighted at roughly 2 percent each, rebalanced every 2 weeks. The deepest cap-curve card on the lineup.

The 5-year backtest produced a cumulative return of 442.45% against the Nifty 50's 59.62%. CAGR 40.22%. Sharpe 1.52.

Microcap concentration risk shows up in drawdown depth more than return uplift: CAGR 40.22% sits just below Smallcap's 41.26% but max drawdown is meaningfully deeper (-26.43 versus -22.34 percent). Sharpe is 1.52 versus Smallcap's 1.59 for the same reason. Volatility 24.09% is only marginally higher than Smallcap's 23.51% because the 50-stock equal-weight structure absorbs single-name shocks effectively.

This is not the obvious pick at this minimum capital. Smallcap (CAGR 41.26, Sharpe 1.59, max DD 22.34%) is the better risk-adjusted card at similar capital. Microcap returns sit just below Smallcap (40.22 vs 41.26) but Sharpe is lower (1.52 vs 1.59) and max drawdown is materially deeper.

For an investor who specifically wants microcap exposure, distinct cap-curve risk, distinct stock-selection edge, this is the only card on the lineup that delivers it. For everyone else, Smallcap is the cleaner trade. The 2023 print at +92.8 percent is the live-feel of microcap momentum when the regime is on. Size as 5 to 10 percent of equity, satellite to a diversified core.

CAGR 40.22% versus Nifty's 9.80%. Sharpe 1.52. Max drawdown 26.43%. Volatility 24.09%. Min 139903.

Key Takeaways

Deep microcap momentum from Nifty Microcap 250
50 stocks equal-weighted rebalanced fortnightly
CAGR 40.22% with Sharpe 1.52
Max drawdown 26.43% over 210 days

Frequently Asked Questions

What is the Microcap strategy?

50 stocks. Nifty Microcap 250 universe. Fortnightly rotation. CAGR 40.22%. Sharpe 1.52. It selects the top 50 momentum names from Nifty Microcap 250 and rebalances every 2 weeks.

What is the minimum investment for Microcap?

₹139903. This is enough to hold one share of every name in the current book at present prices. Higher allocations tighten the equal-weight match.

How does Microcap compare to the Nifty 50?

Over the 5-year backtest, Microcap produced 40.22% CAGR versus Nifty 50's 9.80%. Sharpe ratio 1.52 versus the benchmark's 0.73. Past performance does not guarantee future returns.

What is the worst drawdown Microcap has experienced?

26.43% peak-to-trough in the 5-year backtest. The deepest period ran 210 days from 2022-01-21 to 2022-08-19. Drawdowns of similar magnitude can happen again. Position sizing should reflect this.

What are the fees on Microcap?

0.2% on traded value per rebalance. No subscription, no AUM fee, no performance fee. With 2 weeks cadence and typical 30 to 50 percent turnover, annual platform fees on the minimum capital work out to under ₹500. See the pricing page for the full worked example.

Can I exit Microcap at any time?

Yes. No lock-in. Holdings sit in your own broker demat account and you can sell any name on any market day. Switching strategies or pausing the rebalance is a one-click action on the platform.

Last Rebalance 2026-05-11

Next Rebalance 2026-05-25

Documents

View / download factsheet (PDF) Rebalance History CSV

Last rebalance | 2026-05-11

Full history →

vs 2026-05-08 cycle · 0 added · 18 removed · 48 retained

Added (0)

No additions

Removed (18)

KSBTHANGAMAYLOSWALPUMPSAWFISIMFAWAAREERTLRTNINDIAGAELSHRIPISTONGOKEXMAHSEAMLESASTRAMICROALIVUSLUMAXTECHKRBLSTAREPLAKUMS

Get notified when Microcap rebalances

Free email alert on the morning of every rebalance with the IN / OUT names and rationale. Unsubscribe with one click.

Walk the risk band

Microcap sits in the Moderately High bucket. Take one step in either direction:

One step safer (Moderate)

Allcap Multi Asset

CAGR 43.9% · Sharpe 1.81 · Max DD 21.3%

One step bolder (High)

Midcap Smallcap

CAGR 49.9% · Sharpe 1.63 · Max DD 26.2%

Compare Microcap with

2 pre-built head-to-head comparisons with metrics, holdings overlap, and trade-off summary.

Smallcap

CAGR 41.3% · Sharpe 1.59

Smallcap

CAGR 41.3% · Sharpe 1.59

Learn the mechanics behind Microcap

4 modules from the RupeeCase Learn library cover the concepts inside this strategy. Free, no sign-up.

Momentum factor | the engine behind these strategies How backtesting works | reading the 5Y numbers honestly Risk metrics that matter | Sharpe, Sortino, max DD Rebalancing strategies | why cadence matters

Hear it on The Tanmay Edge

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Phase 49B Compare Microcap side-by-side Match returns, drawdowns and overlap against any other strategy in the lineup.

Disclaimer: Past performance is not indicative of future returns. All returns shown are from backtests conducted by RupeeCase from 2021-05-07. Actual traded returns may differ. Systematic strategies are subject to market risk, and capital can be lost. Investors should conduct their own research and consult a financial advisor before investing.

Learn the mechanics