Trust Mutual Fund enters equity space with new flexi cap fund

Trust Mutual Fund, which until now provided only fixed-income investment products, has launched its maiden equity fund, TRUSTMF Flexi Cap Fund. The open-ended equity scheme will afford investors diversification across large-cap, mid-cap and small-cap companies, and will focus on 40-60 high-conviction stocks. The new fund offer opens on 5 April and closes on 19 April.

The launch comes at a time of euphoria in the markets, which have hit record highs over the past few months. The fund will be benchmarked to the Nifty 500 TRI index and managed by Mihir Vora, the chief investment officer at Trust Mutual Fund. 

“The fund will invest 65% -100% of its corpus dynamically into Indian equity and equity-related instruments across various market capitalizations,” according to a press release by Trust Mutual Fund.

“We are growth investors, and we believe that our terminal value investing framework and growth at reasonable valuations (GARV) approach offer a differentiated alternative for equity fund investors. GARV is an investment approach that looks at identifying stocks with strong growth potential at reasonable valuations,” said Vora.

The terminal value framework aims to identify and capitalise on the value of a company beyond the foreseeable future. The mutual fund believes this terminal value helps capture the full value-creation journey by staying invested for the long term.

At the launch of the fund, Vora highlighted seven growth drivers that are anticipated over the next two decades. Among these, democracy, demographics and deregulation have long been influential factors, while others such as diversification (China+1), dynamism, digitisation, and debt seem to have become more prominent in recent years, he said. These growth drivers are expected to particularly benefit sectors such as domestic manufacturing companies, defence, railways, infrastructure, urbanisation and real estate, he added.

The AMC previously said it plans to launch about six new funds, including equity funds, in the next two years.