🆕 TRUST Mutual Fund Launches Multi Cap Fund: A Diversified Strategy for Dynamic Equity Investing

#TRUSTMutualFund #MultiCapFund #EquityInvesting #MutualFundsIndia #TerminalValueInvesting #GARVModel #IndiaGrowthStory

Chandigarh: TRUST Mutual Fund has announced the launch of the TRUSTMF Multi Cap Fund, a diversified, open-ended equity scheme designed to capture investment opportunities across large-cap, mid-cap, and small-cap stocks. The fund is strategically positioned to help investors participate in India’s long-term economic growth through a balanced and research-driven equity portfolio.

The New Fund Offer (NFO) is open from June 30, 2025, and will close on July 14, 2025. This scheme is benchmarked to the NIFTY 500 Multi Cap 50:25:25 TRI, a broad-based index representing structured exposure across market capitalizations — 50% to large caps, 25% to mid caps, and 25% to small caps.

🔍 Why Multi Cap Now?

India’s equity markets are witnessing rapid structural evolution, driven by:

• Robust macro fundamentals

• Increased retail and SIP participation

• Boom in mid and small-cap space

• Broad-based sector rotation and digital transformation

With over 1,140 listed companies having a market cap above ₹2,000 crore (as of December 2024, AMFI), investors are seeking strategies that do not limit exposure to one segment, but instead, provide a dynamic and diversified approach.

The Nifty 500 Multi Cap 50:25:25 TRI has delivered a 21.2% CAGR over the past three years (as of March 2025), outperforming several traditional indices — all while managing volatility effectively.

“A multi cap strategy reduces concentration risk and eliminates timing bias between market caps. It offers a smoother investment journey for those looking at long-term wealth creation,” says Sandeep Bagla, CEO of TRUST Mutual Fund.

🧠 Investment Strategy: A Dual-Framework Approach

The TRUSTMF Multi Cap Fund’s core philosophy is built on a disciplined, research-backed approach, leveraging two complementary frameworks:

1. Terminal Value Investing

This approach seeks companies with:

• Sustainable competitive advantages

• Leadership positions in high-growth industries

• Exposure to megatrends such as digital adoption, premiumization, financial inclusion, and renewable energy

It focuses beyond near-term earnings to identify long-term value creators, often driven by intangibles like brand strength, intellectual property, and scalable ecosystems.

2. GARV (Growth At Reasonable Valuation)

GARV is an evolved GARP (Growth At Reasonable Price) model. It identifies:

• Consistent growth companies

• Available at rational valuations, balancing growth expectations with downside protection

By combining forward-looking valuation metrics with earnings visibility, GARV helps build a robust, balanced portfolio across market phases.

“The fund will be constructed using 40–60 high-conviction stocks, ensuring sufficient diversification without diluting focus,” shares Mihir Vora, CIO of TRUST Mutual Fund.

💹 Portfolio Characteristics and Structure

The fund will maintain a minimum allocation of 25% each to large-cap, mid-cap, and small-cap stocks. The remaining 25% can be flexibly allocated based on the fund manager’s conviction and market outlook.

Key features:

• Large Caps: Provide stability, market leadership, and institutional confidence

• Mid Caps: Offer scalability and growth potential, often in emerging sectors

• Small Caps: High-risk, high-return potential, typically under-researched with strong alpha opportunities

The fund is designed to perform across market cycles and offer risk-adjusted returns, thanks to its mix of top-down macro analysis and bottom-up stock selection.

📊 Opportunity Landscape: What’s Driving the Launch?

TRUST Mutual Fund believes the timing is ideal, citing three core trends:

1. Market Deepening

Mid and small-cap stocks have seen nearly a 4x increase in market capitalization between 2019 and 2024. A strong pipeline of IPOs and MSME formalization is adding breadth to the equity market.

2. Demographic Dividend

With India’s median age under 30, and rising disposable income, sectors such as financial services, consumption, healthcare, manufacturing, and tech-enabled businesses are set to thrive.

3. Structural Growth Themes

Themes like Make in India, renewable energy transition, urban infrastructure, and digital transformation are creating long-term opportunities across the cap spectrum.

👨‍💼 Management Expertise

The fund will be actively managed by Aakash Manghani, Fund Manager – Equities, under the strategic oversight of Mihir Vora, CIO, who brings decades of investment experience across market conditions.

Their experience is backed by TRUST MF’s commitment to transparency, client-first philosophy, and the use of quantitative tools and behavioral insights in portfolio construction.

📈 Who Should Invest?

The TRUSTMF Multi Cap Fund is suitable for:

• Investors with a medium to long-term horizon (5+ years)

• Those seeking diversified exposure across market capitalizations

• Individuals wanting to reduce timing risk between cap segments

• Investors aiming for structured wealth creation through equity

Minimum application amount is ₹5,000 and in multiples of ₹1 thereafter.

🌟 Conclusion

The launch of the TRUSTMF Multi Cap Fund reflects the AMC’s vision to provide intelligent, balanced equity exposure tailored to India’s growing and diversified equity ecosystem. Combining innovation, structure, and research, this fund presents a compelling opportunity for investors looking to ride India’s economic momentum with resilience and discipline.

🗓️ NFO Period:

• Opens: June 30, 2025

• Closes: July 14, 2025

📌 Hashtags:

#TRUSTMutualFund #MultiCapFund #EquityInvesting #MutualFundsIndia #TerminalValueInvesting #GARVModel #IndiaGrowthStory #LongTermInvesting #WealthCreation #StockMarketIndia #NFO2025 #MidCapStocks #SmallCapStocks #LargeCapStocks #BalancedPortfolio #InvestmentOpportunity #DiversifiedEquity #FinancialFreedom #GrowthAtReasonableValuation