NFO Alert: TRUST Mutual Fund launches smallcap fund

TRUST Mutual Fund has launched TRUSTMF Small Cap Fund, an open-ended equity scheme that focuses on small-cap stocks.

The new fund offer or NFO of the scheme is open for subscription and will close on October 25.

The fund will be benchmarked against the NIFTY Smallcap 250 TRI. The fund will be managed by Mihir Vora and Aakash Manghani.


The primary goal of the scheme is to generate long-term capital appreciation by investing mainly in equity and equity-related securities of small-cap companies. This launch offers investors a chance to participate in the early growth stages of companies with the potential for substantial long-term wealth creation, according to a release by the fund house.

TRUSTMF Small Cap Fund NFO launch marks the second equity fund from TRUSTMF, said the release.

"At TRUST Mutual Fund, growth investing is in our DNA. We focus on finding growth at reasonable valuations through our terminal value investing approach. Our new small-cap fund is designed to capture the high-growth phase of a company’s lifecycle, where the potential for returns can be most promising. The small-cap market offers a vast array of investment choices, including sectors like consumption, financialization, and physical asset creation, which we believe have a long runway for growth," said Sandeep Bagla, Chief Executive Officer of TRUST MF.

An exit load of 1% 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.

The minimum investment amount for lumpsum purchase (Incl. Switch-in) 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 installments.

"The small-cap 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. Our investment philosophy of Terminal value investing focuses not only on good growth in the near future but attributes even more importance to the length of the growth runway. This allows us to put an appropriate valuation to the long-term growth potential and ensures that we remain committed to businesses throughout their entire value creation journey. In the small-cap space, this approach is crucial, as these companies often have a long, underappreciated runway for growth," said Mihir Vora, Chief Investment Officer at TRUST MF.

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