The new fund offer or NFO of the scheme is open for subscription and it will close on February 7. The scheme will re-open for continuous sale and repurchase within five business days from the date of allotment.
The investment objective of the scheme is to seek long-term capital growth through investments in equity and equity-related securities of predominantly large cap and mid cap stocks. The scheme’s riskometer shows that the scheme falls in the ‘very high’ risk category.
The scheme is benchmarked against NIFTY LargeMidcap 250 Index TRI. The scheme will be managed by Vinay Paharia, Anandha Padmanabhan Anjeneya, and Utsav Mehta (equity investments), Puneet Pal (debt investments), and Ojasvi Khicha (overseas investments).
The scheme will invest 70-100% in equity and equity-related securities of large cap and mid cap companies and other than large and mid cap companies, 0-20% in debt and money market securities (including TREPS (Tri-Party Repo), reverse repo), 0-10% in units issued by REITs & InvITs, and 0-25% in foreign securities including overseas ETFs.
The portfolio of the scheme will be built utilizing a combination of the top-down and bottom-up portfolio construction process, focusing on the fundamentals of each stock, including quality of management. The fund manager will aim to build a diversified portfolio with exposure across sectors. The scheme will offer regular and direct plans with growth and IDCW options. The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter. The minimum application amount for SIP is Rs 1,000 each and in multiples of Rs 1 thereafter with minimum five instalments. The scheme is suitable for investors who are seeking long-term capital growth and want investment in equity and equity-related securities of predominantly large cap and mid cap stocks.
Should you invest?
ETMutualFunds believes that investors should invest in an NFO only if it is offering something unique or something extra to already available options. Otherwise, they are better off with an existing scheme with a long, consistent performance record.
There are around 27 schemes in the large and mid cap category. Around 20 schemes have a performance record of seven years. Mirae Asset Large & Midcap Fund, the topper in the category, offered 18.97% in seven years. Quant Large & Mid Cap Fund offered 18.82%. Three schemes offered around 17%. Around five schemes have offered 16%.
Also, remember that these schemes are suitable for investors with a higher risk appetite and ability to totlerate volatility as they invest in mid cap stocks.
