TRUST Mutual Fund has launched TRUSTMF Flexi Cap Fund, catering to investors seeking diversified exposure across large-cap, mid-cap, and small-cap stocks. The new fund offer (NFO) opens today, April 5, 2024 and will run till April 19, 2024.
The fund will be benchmarked to the Nifty 500 TRI Index.
NFO Details
Investors can invest a minimum amount of Rs 1,000 and in multiples of any amount thereafter for lump sum investments.
Investors can also opt for the systematic investment plan (SIP) route with a minimum monthly investment of Rs. 1,000 and minimum six instalments. If investors redeem any investment within three months from the date of allotment, they face an exit load of 1 per cent.
What Are Flexi-Cap Funds?
Flexi-cap funds are equity mutual funds that invest across large-, mid-, and small-cap stocks, thus offering more freedom in allocation decisions to fund managers. The only criteria imposed by the Securities and Exchange Board of India (Sebi) is that they have to invest a minimum of 65 per cent of assets in equity and equity-related instruments. Investing in flexi-cap funds helps mitigate investment risks because of diversification.
Further, the flexibility in investments allowed to flexi-cap funds enables them to better perform across different market cycles.
TRUSTMF Flexi Cap Fund plans to invest 65-100 per cent of its corpus dynamically into the Indian equity and equity-related instruments across various market capitalisations, TRUST MF said in a release.
“Our pursuit would be to spot companies which are rare, dominant, unchallenged, and long-lasting i.e. like Gorillas,” it said in a statement.
Investment Philosophy
Mihir Vora, chief investment officer, TRUST Mutual Fund said, “We are growth investors, and we believe that our Terminal Value Investing framework and Growth at Reasonable Valuations (GARV)* approach offers a differentiated alternative for equity fund investors. GARV, an acronym for Growth at Reasonable Valuations, is an investment approach that looks at identifying stocks with strong growth potential at reasonable valuations. TRUSTMF Flexi cap Fund encompasses this philosophy, and the mandate enables the fund to adapt and navigate through various market conditions for sustainable investment success.”
Flexi-Cap Category
According to data from the Association of Mutual Funds in India (Amfi), there are 34 funds in the flexi-cap category with a combined asset under management (AUM) of Rs 3.49 lakh crore, the largest category in mutual fund industry. Over the past year, the active funds in this category gave collective average returns of 43.55 per cent. The returns over the past three years was 18.7 per cent, and in five years, it was 17 per cent.
