Kolkata : TRUST Mutual Fund is pleased to introduce the TRUSTMF Small Cap Fund, an open-ended equity scheme that focuses on small-cap stocks. This new fund will be benchmarked against the NIFTY Smallcap 250 TRI index, offering investors an exciting opportunity to access high-growth sectors and emerging themes.
The New Fund Offer (NFO)
will be open for subscription from October
11 to October 25, 2024. The primary goal of the scheme is to generate
long-term capital appreciation by investing mainly in equity and equity-related
securities of small-cap companies. This launch offers investors a chance to
participate in the early growth stages of companies with the potential for
substantial long-term wealth creation.
TRUSTMF Small Cap Fund NFO launch marks the
second equity fund from TRUSTMF. The launch comes at an opportune time, with
smallcap companies currently experiencing accelerated growth, providing
attractive opportunities for long-term value appreciation.
Sandeep Bagla, Chief Executive Officer of TRUST MF,
shares, "At TRUST Mutual Fund, growth investing is in our DNA. We focus on
finding growth at reasonable valuations through our terminal value investing
approach. Our new small-cap fund is designed to capture the high-growth phase
of a company’s lifecycle, where the potential for returns can bemost promising.
The small-cap market offers a vast array of investment choices, including
sectors like consumption, financialization, and physical asset creation, which
we believe have a long runway for growth."
Since 2020, the
small-cap universe (Mcap>2000 crs)* has grown nearly fourfold, offering a
wide range of investment opportunities across high-potential sectors. The
TRUSTMF Small Cap Fund is built to leverage these opportunities while
maintaining a disciplined investment strategy aimed at sustainable wealth
creation for its investors.
Mihir Vora, Chief Investment Officer at TRUST MF,
emphasizes, "The small-cap segment is a unique space for investors to
discover high-growth companies early in their journey. Our strong research
foundation at TRUST MF allows us to identify these promising stocks. Our
investment philosophy of Terminal value investing focuses not only on good
growth in the near future but attributes even more importance to the length of
the growth runway. This allows us to put an appropriate valuation to the
long-term growth potential and ensures that we remain committed to businesses
throughout their entire value creation journey. In the small-cap space, this
approach is crucial, as these companies often have a long, underappreciated
runway for growth."
Aakash Manghani, Fund Manager- Equities at TRUST MF,
adds, "In recent years, the market capitalization of small-cap companies
has grown significantly, highlighting their increasing role in the economy.
Small caps can befertile ground for multi-baggers, offering investors the
chance to achieve outsized gains as these companies scale. Many industry
leaders, across multiple high growth sectors are available only in the small
cap space. This makes small caps an attractive option for investors seeking to create
long term wealth.
India is a growth market,
and small caps offer reasonable valuations given that outlook for the next 2-3
years is very strong. Small caps’ growth story is structural, today’s small
caps are doing decadal high
ROEs with the best
balance sheet health.”
The fund will be managed by Mihir Vora, Chief Investment Officer, and Aakash Manghani, Fund Manager - Equities.
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