Smallcaps Crashed 30% – Is This the BEST OPPORTUNITY for 2026? Ft. Pawan Bharaddia | FWS 95

If you’d like professional guidance from a SEBI-registered financial advisor, please fill out this short form –

We currently advise portfolios worth ₹1,200+ crore, helping people work towards financial independence.

In this episode, we sit down with Pawan Bharaddia, Co-Founder & CIO of Equitree Capital who has spent 27 years in the markets, built multiple 40x+ winners, and stayed almost entirely invested in small-cap businesses through cycles, crashes, and long periods of boredom.

He shares why 2025 was brutal for small caps, why a deep correction has already played out, and why valuations today are closer to long-term averages even as business growth quietly returns. We also break down how his concentrated portfolio has delivered 34%+ CAGR over five years, despite charging performance fees only after investor capital doubles.

Most importantly, he explains his private-equity-style approach to listed markets: owning just 12-15 businesses, holding them for 6-7 years, avoiding hype, and backing promoters with decades-long track records. From India’s manufacturing and export opportunity to defense, infra, and consumption, this conversation reframes what long-term wealth creation in equities really looks like.

Equitree Capital: https://equitreecapital.com/contact
Pawan Bharaddia: https://www.linkedin.com/in/pawan-bharaddia?originalSubdomain=in

—
Subscribe:
The 1% Club:
YouTube: https://www.youtube.com/@FWSClips0
Instagram: https://www.instagram.com/onepercentclubshow/
LinkedIn: https://www.linkedin.com/school/the-1-clubfws/
Sharan Hegde:
Instagram: https://www.instagram.com/financewithsharan/
LinkedIn: https://www.linkedin.com/in/sharanhegde95/
Twitter/X: https://x.com/financewsharan

–
Sharan Hegde is a personal finance creator & founder of the 1% Club, simplifying money, markets, and mindset for India’s next generation of wealth builders.
–
Timeline:
00:00 – Precap
01:05 – Outlook for Small Caps in 2026
03:09 – Pawan’s Fund Returns vs the Top 500 Stocks
05:17 – How He Delivers Such High Returns
09:30 – Why He Prefers Concentrated Bets Over Diversification
13:29 – Pawan’s Framework for Finding Multibaggers
17:13 – Sectors That Can Create the Next Multibaggers
19:55 – India’s Edge in Manufacturing & Infrastructure
22:20 – Other Sectors Powering India’s Next Growth Phase
25:37 – How He Pulled Off 52% Returns
27:09 – Why Small Caps Have the Highest Return Potential
31:29 – How One Extra Year of Patience Gave Him 40x Returns
34:35 – Should You Go All-In on Small Caps Like Pawan?
36:33 – A Look at His Current Sectoral Allocation
38:00 – The One Investing Rule You Should Never Break
43:00 – Closing Thoughts

source