Mahindra Manulife Mutual Fund, a joint venture of Mahindra & Mahindra Financial Services Limited and Manulife Investment Management (Singapore) Pte. Ltd. has announced its ‘New Fund Offer’ (NFO). The scheme called Mahindra Manulife Small Cap Fund is an open-ended equity scheme predominantly investing in small cap stocks.
The NFO will close for subscription on December 5, 2022 and reopen for continuous sale and repurchase from December 14, 2022.
This product is suitable for investors who are seeking long term capital appreciation and investment predominantly in equity and equity related securities of small cap companies, Mahindra Manulife Mutual Fund said.
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"Small cap mutual funds have potential to create wealth and generate alpha over long term, as they provide exposure to companies which are potential market leaders in the industries they operate in and are likely to become future midcaps as they scale up. They are generally under-researched and under-owned, thus providing an opportunity for stock picking at reasonable valuations," kit said.
Anthony Heredia, MD & CEO, Mahindra Manulife Mutual Fund said, “Small cap funds would be an ideal option for long term investors looking to take advantage of this change and should become a core part of investor portfolios. Given our past track record in looking at these companies across our diversified fund range, we feel this is the right time to bring this product to market, and help our investors realize their longer-term wealth creation aspirations.”
Krishna Sanghavi, Chief Investment Officer – Equity, Mahindra Manulife Mutual Fund said: “The investment objective of the fund is to generate long term capital appreciation by investing in a diversified portfolio of equity and equity related securities of small cap companies. Indian small caps offer a wide range of companies that are likely to participate and grow with Indian economy as India moves from 7th largest to 3rd largest economy in terms of size."
About the scheme
The Scheme will focus on creating an appropriate diversified portfolio of companies with a long-term perspective. The scheme will invest a minimum of 65 percent of net assets in equity and equity related instruments of small cap companies.
The scheme may take exposure in equity derivative instruments to the extent of 50 percent of the equity permitted component. Investment in derivatives shall be for hedging, portfolio balancing, and such other purposes as maybe from time to time under the regulations and subject to guidelines issued by SEBI/RBI from time to time, the company said.
The fund managers are Abhinav Khandelwal and Manish Lodha.
(Edited by : Anshul)
First Published: Nov 22, 2022 5:52 PM IST
