Take the SIP route to join Trust MF's hunt for 'gorillas'

Mumbai: Trust Mutual Fund's first equity product offering may be better suited for investors looking to stagger their investments using the Systematic Investment Plan (SIP) route, said investment advisors.

The asset manager is launching Trust Flexi Cap Fund whose new fund offer will be open between April 5 and 19.

The fund, which will be managed by Mihir Vora and Akash Manghani, will manage a portfolio of 40-50 stocks. The fund managers will combine investment philosophies including growth at a reasonable value (GARV) and terminal value (TV) to pick stocks.


The fund manager will look for "Gorillas" - companies that are potentially rare, dominant, unchallenged and have a higher longevity for growth. The fund house believes investors tend to grossly underestimate the terminal value of high-growth stocks. This approach will offer a differentiated alternative for equity fund investors, according to the fund house.

Investment advisors said existing flexi-cap schemes make better bets for lump sum investing given their track record.

"Investors should wait, see the fund portfolio and its performance to come in before making any lump sum investment," said S Shankar, CFP at Credo Capital.

The fund will charge an exit load of 1% for redemptions within 180 days of allotment. The scheme will be benchmarked to the Nifty 500 TRI.

The biggest selling point for Trust will be its strong parentage. The company's founder Utpal Sheth is also the CEO of Rare Enterprises, the family office of late billionaire Rakesh Jhunjhunwala.

"Investors looking for a differentiated stock picking approach in a flexi-cap fund backed by strong promoters can consider this fund," said Nikhil Gupta, founder of Sage Capital. Gupta too believes investors must stagger their investments and build their investments through SIPs.