TRUST MF's new fund to invest in India's emerging smallcap segment

Scheme's objective is to generate long-term capital appreciation by investing mainly in equity and equity-related securities of smallcap companies

TRUST Mutual Fund has launched an open-ended equity scheme that will track smallcap stocks, aiming to provide investors with exposure to high-growth sectors and emerging themes. The new fund offer (NFO) of TRUSTMF Small Cap Fund will close on October 25.

 

It is TRUST Mutual Fund's second equity fund, coming at a time when smallcap companies are “experiencing accelerated growth”. The fund will target various high-potential sectors, including consumption, financialisation, and physical asset creation, said the company in a statement.

 

“The smallcap 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,” said Mihir Vora, chief investment officer of TRUST MF.

 

 

The market capitalisation of smallcap companies has grown fourfold since 2020. “In recent years, the market capitalisation of small-cap companies has grown significantly, highlighting their increasing role in the economy. Smallcaps can be fertile ground for multi-baggers, offering investors the chance to achieve outsized gains as these companies scale,” said Aakash Manghani, fund manager-equities at TRUST MF.

 

Details about TRUSTMF Small Cap Fund

 

Objective of scheme: The objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of small cap companies. However, there is no assurance that the investment objective of the scheme will be realised

 

Scheme type: It is an open-ended equity scheme.

 

Benchmark: The fund will be benchmarked against the NIFTY Smallcap 250 TRI.

 

Minimum investment: The minimum investment amount for lump sum purchase is Rs 1,000 and in multiples of any amount thereafter. For monthly SIP, the minimum amount is Rs 1,000 (plus in multiple of any amount) with minimum six instalments

 

Exit load: An exit load of 1 per cent will be applicable, if redeemed/switched out within 180 days from the date of allotment. The exit load will be nil, if redeemed/switched out after 180 days from the date of allotment.

 

Fund manager: Mihir Vora and Aakash Manghani will manage the fund.