New NFOs watch: Canara Robeco BFS Fund, TRUSTMF Mid Cap Fund open for subscription

Canara Robeco Mutual Fund has launched the Canara Robeco Banking and Financial Services Fund, aiming to provide investors with focused exposure to India's growing financial sector. The fund, managed by Shridatta Bhandwaldar and Amit Kadam, will be benchmarked against the Nifty Financial Services Index (Total Return Index). The minimum investment during the New Fund Offer period is Rs 5,000, with additional investments in multiples of Re 1. The scheme responds to a notable shift in borrowing behaviour in India, where early credit adoption and increased ease of access to credit are becoming more common.

Rajnish Narula, Managing Director and Chief Executive Officer of Canara Robeco Asset Management, said, "Banking and financial services are the engines of India’s economy. With this new fund offer, we are giving investors a direct opportunity to participate in that momentum," and further added, "This launch reflects our focus on creating investment solutions that help investors in long term wealth creation and build financial futures."

The fund will allocate a significant portion of its assets to entities active in the banking and financial services sector. According to Shridatta Bhandwaldar, Chief Investment Officer – Equities at Canara Robeco Asset Management, "Canara Robeco Banking and Financial Services Fund aims to create a portfolio with an emphasis on growth and value/profit pool migration. It intends to have an optimal balance of steady compounding business as well as growth accelerators / value migration plays within the overall financial sector." He also stated, "We believe the fund may provide an opportunity to investors to take advantage of growth potential in the Banking and Financial Services Sector."

Gaurav Goyal, Head - Sales and Marketing at Canara Robeco Asset Management, commented, "The Banking and Financial Services Sector has a humungous contribution to the growth of the Indian economy. Canara Robeco Banking and Financial Services Fund expands our thematic/sectoral fund offering, adding to the options we provide to investors. Investment in this fund could assist investors to participate in the India growth story and encourage wealth creation for them, in the long-run". The scheme is positioned to benefit from the ongoing transformation within India’s financial services landscape and offers another sector-focused option to mutual fund investors.

TRUSTMF Mid Cap Fund

TRUST Mutual Fund has announced the launch of the TRUSTMF Mid Cap Fund, expanding its product lineup with an open-ended equity scheme focused on mid-cap companies. The new fund offer (NFO) is currently open and will close for subscriptions on 13 March. The fund’s objective is to pursue growth at reasonable valuations, combining a disciplined investment process and in-depth research. With the scheme benchmarked against the Nifty Midcap 150 TRI, investors can expect the fund to mirror the performance of India’s leading mid-cap equities. The fund is co-managed by Mihir Vora and Aakash Manghani, who bring substantial experience to the scheme.

For investors considering participation, the minimum lump-sum investment is set at Rs 1,000, with subsequent purchases allowed in multiples of any amount. The scheme’s investment allocation includes 65-100% in equity and equity-related instruments of mid-cap companies, 0-35% in equities outside the mid-cap universe, 0-35% in debt and money market instruments, and up to 10% in units issued by Infrastructure Investment Trusts (InvITs). This allocation aims to provide a balanced approach while maintaining a core mid-cap focus.

Sandeep Bagla, Chief Executive Officer of TRUST MF, highlighted the scheme’s investment philosophy, stating, "Growth investing* is central to our philosophy. In the mid-cap universe, outcomes can vary significantly, making research depth and valuation discipline especially important. Our investment process combines fundamental analysis, relative valuation and Terminal Value Investing* to identify businesses that can create sustainable long-term value,".

Aakash Manghani, Fund Manager, Equities, TRUST Mutual Fund, further explained the fund’s approach: "Mid-cap investing demands strong bottom-up research and sharp execution focus. We are looking for companies that are gaining market share, improving operating efficiencies and demonstrating consistent earnings delivery. By maintaining valuation discipline and focusing on quality growth businesses, we aim to build a resilient portfolio positioned to benefit from India’s next phase of expansion,". The TRUSTMF Mid Cap Fund targets investors with a high-risk appetite, a minimum five-year horizon, or those seeking disciplined exposure to mid-caps and portfolio diversification.