The S&P BSE SmallCap index tracks the performance of small-cap companies listed on the Bombay Stock Exchange. Small-cap companies are entities that are ranked above 251 in terms of total market capitalisation.

The S&P BSE SmallCap index is designed to represent 15% of the total market capitalisation of the S&P BSE AllCap index. The top five sectors include capital goods, finance, healthcare, housing and information technology.

Only stocks that feature in the S&P BSE AllCap index are eligible for inclusion. The constituents of the BSE AllCap index are ranked in descending order of their cumulative average daily total market capitalisation.

The stocks that make up the bottom 15% of the market capitalisation of the AllCap index are included in the BSE SmallCap index. The index is reviewed by the BSE index committee every quarter in June, September, December and March, and rebalanced once every year in September.

The Bombay Stock Exchange introduced the S&P BSE SmallCap index on April 11, 2005, to represent the small-cap segment of the Indian stock market.

Although the index was launched in 2005, its first value date has been set for April 1, 2003. The index value before the launch date is calculated using hypothetical backtesting based on the index's methodology.

Since the S&P BSE SmallCap is a market index, you cannot invest in it directly. However, you can consider investing in mutual funds that include certain stocks from the index for partial exposure.

There may also be certain index mutual funds that invest in the same stocks as the BSE SmallCap in the same proportion or weightage, designed to replicate the performance of the index, giving you complete exposure.