Leveraging Systematic Investment Plans for Long-term Wealth Creation
Investment advisors suggest that Trust Mutual Fund’s inaugural equity offering, the Trust Flexi Cap Fund, presents an enticing opportunity for investors, particularly those inclined towards a systematic investment approach. With its distinctive investment philosophy and strong parentage, the fund offers a novel avenue for investors seeking to diversify their portfolios.
Exploring Trust Flexi Cap Fund
Scheduled to launch between April 5 and 19, the Trust Flexi Cap Fund is set to be managed by industry veterans Mihir Vora and Akash Manghani. The fund will curate a portfolio of 40-50 stocks, leveraging investment philosophies such as Growth at a Reasonable Value (GARV) and Terminal Value (TV) to identify promising investment opportunities.
Hunting for “Gorillas”
The fund’s managers aim to unearth “Gorillas” in the market—companies with rare dominance and sustainable growth potential. By focusing on these high-growth stocks, Trust Mutual Fund aims to capitalize on their long-term value, offering investors a differentiated approach to equity investing.
Strategic Approach for Investors
While lump sum investments are common in flexi-cap schemes, investment advisors recommend a cautious approach for Trust Flexi Cap Fund. Given the fund’s unique investment strategy, investors are advised to monitor its portfolio and performance before committing substantial sums.
Staggered Investments via SIPs
Nikhil Gupta, founder of Sage Capital, suggests that investors consider leveraging the SIP route to gradually build their investments in Trust Flexi Cap Fund. This approach allows investors to spread their investment risk over time while benefiting from rupee cost averaging.
Key Features and Benchmark
The Trust Flexi Cap Fund will levy an exit load of 1% for redemptions within 180 days of allotment and will be benchmarked against the Nifty 500 TRI index. The fund’s strong parentage under Trust Mutual Fund, led by Utpal Sheth, CEO of Rare Enterprises, adds credibility and confidence to its offering.
