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Trust Mutual Fund forays into equity space with launch of flexicap scheme

Plans to differentiate equity offerings by focusing on long-term value of stocks

Mihir Vora, Chief Investment Officer (CIO), Trust Mutual Fund
Mihir Vora, Chief Investment Officer (CIO), Trust Mutual Fund
Abhishek Kumar Mumbai
2 min read Last Updated : Apr 03 2024 | 11:05 PM IST
Trust Mutual Fund (MF) entered the equity MF space on Wednesday with the launch of its flexicap scheme.

The fund house, which launched its first scheme in January 2021, was so far focused only on the debt space, managing around Rs 1,200 crore across seven schemes.

Trust MF said its equity schemes will follow a differentiated strategy, wherein the focus will be on 'terminal value' with a 'growth at reasonable valuations' (GARV) approach.

According to the fund house, terminal value is the value of a company beyond the foreseeable horizon.

“Terminal value is a function of leadership, intangible assets and megatrends. It helps identify the true potential of a growth company and capture the full value creation,” Trust MF said in a press release.

Last year, the fund house had hired Mihir Vora, former chief investment officer (CIO) of Max Life Insurance, to build the equity investment team and head investments across equity and debt.

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Vora said the company identified a few themes that are expected to play out over the long term. These themes include consumption and financialisation, physical asset creation, progress in urbanisation, infrastructure, real estate and digitisation.

The fund house also estimates a consumption premiumisation in the next few years on the back of 4x growth in high income households to 29 million by 2030.

“We are growth investors, and believe that our terminal value investing framework and GARV approach offers a differentiated alternative for equity investors. GARV is an investment approach that looks at identifying stocks with strong growth potential at reasonable valuations.

Trust MF Flexicap Fund encompasses this philosophy. The mandate enables the fund to adapt and navigate through various market conditions for sustainable investment success,” said Vora.

Sandeep Bagla, chief executive officer (CEO), Trust MF, said the asset manager plans to launch three-four more equity schemes over the next two years.

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Topics :mutual fund investorsequity mutual fund schemesstock market trading

First Published: Apr 03 2024 | 7:28 PM IST

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