Bandhan Small Cap Fund, outperforming 93% of peers, is strategically investing in beaten-down Indian internet stocks like Paytm and Info Edge. Despite current market challenges, fund manager Manish Gunwani sees value in these undervalued companies with significant growth potential. The fund's approach focuses on stocks with potential to double, targeting firms overcoming regulatory challenges. Currently holding over 250 stocks, the portfolio is diversifying across financial services, real estate, textiles, and internet sectors. While small-cap stocks face volatility, with the Nifty Smallcap 100 down 2.7% year-to-date, the fund remains optimistic about market rotation and the potential for undervalued shares to gain momentum. The strategy highlights the importance of deep-value investing in emerging market segments.
