Old Bridge Mutual Fund has announced the launch of its maiden new fund offer (NFO). The equity fund, named Old Bridge Focused Equity Fund is an open-ended equity scheme that will invest in a minimum 30 stocks.
The NFO will open for subscription on January 17, 2024, and close on January 19, 2024. The minimum investment amount is Rs 5,000 in lump sum mode and Rs 2,500 through systematic investment plans (SIPs).
The scheme will be benchmarked against the S&P BSE 500 TRI.
Investment Objective
According to Old Bridge Mutual Fund, the fund’s primary objective is to achieve long-term capital appreciation by strategically investing in a maximum of 30 stocks across different market capitalisations (i.e., large-, mid- and small-caps).
This multi-cap approach is designed to identify businesses with the potential to compound capital over the long term. It will focus on companies with enduring economic moats that has long-term franchise value and continued growth potential. It aims to provide investors with a unique opportunity to participate in the growth potential of carefully selected companies, Old Bridge Mutual Fund said in a statement.
The fund will also focus on long-term capital appreciation through a disciplined buy-and-hold approach, selecting companies with robust growth potential. It will also prioritise financially strong companies with low debt and high capital efficiency for increased resilience and stability.
In addition, it will primarily targets companies early in their growth cycles, potentially capturing significant upside as they establish market leadership, it further said.
Kenneth Andrade, chief investment officer, Old Bridge Asset Management and founder director of Old Bridge Capital Management said, “We are excited to introduce our first equity fund to investors seeking long-term capital appreciation. The fund’s strategy is aligned with our investment philosophy focusing on early-cycle businesses with strong leadership and growth potential.”
“The launch of the Old Bridge Focused Equity Fund aligns with the unprecedented growth in India’s mutual funds industry as highlighted by recent data from the industry trade body Association of Mutual Funds in India (Amfi). With over 20 million new investment accounts and a 19 per cent increase in fund assets during the first 11 months of 2023, India surpasses global peers like the US, Japan, and China.”
