CLEAR, CREDIBLE and CONSISTENT investment approach is the way for constructing portfolio for TRUST Mutual Fund. It is part of 23 year old TRUST group which is a comprehensive financial services platform offering a variety of solutions across investment banking, capital markets, wealth management, and asset management. TRUST group manages AUM of over Rs. 20,000 Crores.
TRUST group is mentored by Mr. Utpal Sheth who is also Senior Partner and CEO at RARE Enterprises, a multi-billion-dollar proprietary asset management firm. Ms. Nipa Sheth is the Founder & Managing Director of TRUST Group. She is rank holding Chartered Accountant as well as a Chartered Financial Analyst (ICFAI).
TRUST Mutual Fund, established in October 2019, represents the TRUST Group’s first venture into offering financial products directly to individual investors. TRUST Mutual Fund offers seven fixed-income investment options. To ensure well-rounded portfolios, TRUST Mutual Fund leverages CRISIL’s expertise for in-depth analysis of potential investments and meticulous portfolio construction.
Today (5th April 2024) Trust MF is launching Flexicap Fund which is open-ended dynamic equity scheme which will be investing across large cap, mid cap, small cap stocks. A flexicap mutual fund, like a skilled all-rounder, seeks to be a well-rounded investment option. It offers diversification, adaptability, and the potential for consistent growth over time. This is the first equity fund which will be launched by TRUST AMC. Benchmark for this fund is Nifty 500 TRI Index.
Fund Managers
Mr. Mihir Vora and Mr. Aakash Manghani are the fund manager for this scheme. Mr. Mihir Vora who has 3 decades of experience in investment management is also Chief Investment Officer of TRUST AMC. Mr. Aakash Manghani has over 14 years of experience in areas of equity research & portfolio management. Mr. Aakash had previously worked with ICICI Prudential Life Insurance where he managed INR 7,000 Cr AUM.
Understanding Flexicap Mutual Funds in India
What are they?
Flexicap mutual funds are a dynamic type of equity fund in India. Unlike other equity fund categories restricted to specific company sizes, flexicap funds have the freedom to invest across the market capitalization spectrum – large-cap, mid-cap, and small-cap companies.
How they work
- Investment Flexibility: The fund manager has the discretion to allocate investments across different market capitalizations based on their growth potential and market conditions. This allows them to capitalize on opportunities across the market.
- Diversification: By investing in companies of various sizes, flexicap funds offer inherent diversification, potentially mitigating risk compared to funds focused on a single market cap.
- Long-Term Growth Potential: The ability to invest in companies with high growth potential, regardless of size, can contribute to long-term capital appreciation for investors.
Benefits
- Adaptability: Flexicap funds can adjust their investment strategy based on market conditions, potentially leading to more consistent returns across market cycles.
- Risk Management: Diversification across market caps helps spread risk and potentially reduces volatility compared to single-cap focused funds.
Investing Philosophy of TRUST Flexicap Fund
Fund belives their differentiated insights will help them capture Terminal Value upside to generate outsized gorrilla returns. Fund belives there are 7 drivers (7D’s) for next two decades for India’s growth stroy.
- DEMOCRACY
- DEMOGRAPHICS
- DEREGULATION
- DIVERSIFICATION (China + 1)
- DYNAMISM (Risk Capital, Mindset)
- DIGITIZATION (Upi,Aadhaar)
- DEBT (Capacity To Take More)
Fund expects these 7D’s will benifit following sectors and themes.
- Consumption and Financialization
- PREMIUMISATION OF CONSUMPTION
- FINANCIALIZATION OF SAVINGS
- EQUITY SAVINGS CULT
- Physical Asset Creation
- MANUFACTURING - DOMESTIC, EXPORTS
- DEFENCE, RAILWAYS
- INFRASTRUCTURE
- URBANISATION AND REAL ESTATE
- Digitization and Technological Disruption
- DIGITIZATION
- TECHNOLOGICAL DISRUPTION
NFO Timeline
NFO of the fund will remain open from 5th April, 2024 and will remain open till 19th of April, 2024. As this is pure equity fund this fund comes under very high risk category.
To know more about fund check the NFO presentation .
5 reasons to invest in TRUST Flexicap Fund
- India is a growth market. Investors can underestimate the long-term potential of high-growth sectors and stocks.
- “Terminal Value Investing” and “Growth at Reasonable Valuations (GARV)” approaches are suited for growth investing.
- Leadership, Intangibles, Megatrends (LIM) framework from TRUST Mutual Fund will help to spot them potential Gorilla companies.
- Differentiated Insights gives Fund the Conviction, Patience and Wisdom to capture the full value creation over the short-term and the long-term.
- Alpha generation by stock-picking is important as different market-caps/sectors/styles perform at different times. TRUSTMF Flexi Cap Fund will be focused on 40-60 high-conviction stocks.
Investment Options
- Lump Sum: Invest a minimum of Rs. 1,000 and any amount thereafter in multiples.
- Monthly SIP: Begin a Systematic Investment Plan (SIP) during the New Fund Offer (NFO) with a minimum investment of Rs. 1,000 per month. The minimum investment period is 6 months (6 installments).
- Quarterly SIP: Start a quarterly SIP with a minimum investment of Rs. 3,000 per quarter. The minimum investment period is 4 installments.
Should Investor Invest in this Flexicap Fund?
Dominating the Mutual Fund landscape, the Equity Flexicap category boasts the highest Asset Under Management (AUM) of Rs. 3,44,170.84 crore (as of today). Within this category, 38 mutual fund schemes compete, with the Parag Parikh Flexi Cap Fund reigning supreme at an impressive AUM of Rs. 58,900.52 crore.
Don’t Get Lost in the Flexi-Cap Crowd!
While the Flexicap category offers a wealth of options, remember: each fund has its own investment strategy. Aligning your investment with your risk tolerance and timeline is key.
If you believe in a long-term investment approach of this fund that focuses on a company’s Terminal Value, then this TRUST FlexiCap fund might be a good fit for you. However, conduct your own research to ensure fund aligns with your goals.
