TRUST Mutual Fund (MF) will launch its first equity fund in April 2024. Named TRUSTMF Flexi Cap Fund, the scheme will be open-ended and invest across large-cap, mid-cap, and small-cap stocks. The new fund offer (NFO) of the scheme will be open between April 5 to April 19, 2024.
Since its inception in February 2021, Trust Asset Management Company (AMC) has primarily focused on debt funds.
About the fund
Anchored by its investment objective to provide long-term growth in capital and income, TRUSTMF Flexi Cap Fund will manage investments in a diversified portfolio of equity and equity-related securities across the entire market capitalisation spectrum, along with debt and money market instruments.
Investors will be able to opt for either the Regular Plan or the Direct Plan, with options including Growth Option and Income Distribution cum Capital Withdrawal (IDCW) Option.
The scheme will impose no entry load, while an exit load of 1% will be applicable if redeemed or switched out within 180 days from the date of allotment, thereafter transitioning to nil.
Investment considerations
With the ability to invest across companies of varying market capitalisations, the fund will facilitate diversification, thus mitigating risk, the mutual fund house said.
Its
flexi cap portfolio will offer flexibility to navigate effectively under different market cycles.
"The fund will be well-suited for various investor profiles, including new investors seeking exposure to different market caps through a single fund, core equity portfolio builders aiming to construct a well-rounded investment portfolio, and long-term investors seeking potential wealth creation adaptable to varying market conditions," Trust Mutual Fund said.
However, investors should consider their risk tolerance level.
While the fund offers diversification to mitigate risk, equity investments inherently carry market risk.
Investors can consult a financial adviser to determine if the TRUSTMF Flexi Cap Fund will be suitable for their investment needs and risk appetite.
