TRUST MF Flexi Cap Fund NFO collects over Rs 500 cr, reopens for subscription. Should you invest?

Trust Mutual Fund's first equity cap TRUSTMF Flexi Cap Fund collected around Rs 510 crore in its new fund offer (NFO). The fund house said that the fund reflected strong interest and participation from investors and distributors. The fund was open for subscription from April 5 to April 20. The fund reopened for subscription from April 29.

Top features of TRUST MF Flexi Cap 

Flexi Cap funds are those funds which invest in companies across the market capitalisation spectrum, i.e. large-cap, mid-cap, and small-cap stocks.  

TRUST MF Flexi Cap Fund's objective is to provide long-term growth in capital and income to investors by actively managing investments in a diversified portfolio of equity and equity-related securities across the entire market capitalisation spectrum.

The fund will be managed by Mihir Vora and Aakash Manghani. The fund will be benchmarked to the Nifty 500 TRI Index.

The fund will invest 65% -100% of its corpus into equity and equity-related instruments across various market capitalisations.

The minimum application amount is Rs 1,000. It will be in multiples of any amount thereafter. 

The minimum amount for monthly SIP is Rs 1,000 (plus in multiple of any amount) with a minimum of six instalments.

The principal invested in the scheme will be at “very high” risk according to the riskometer of the scheme.

Focus on investors

The scheme is suitable for investors seeking long-term capital appreciation and wanting to invest in equity and equity-related securities of companies across market capitalisation.

Commenting on the successful closure of NFO, Sandeep Bagla, CEO of TRUST Mutual Fund, said: "We are delighted by the overwhelming response to our first equity debut offering. I am excited on embarking on this journey that includes the wide investing populace of India. We will endeavour to maintain the highest standards of integrity, transparency, and service.”

Mihir Vora, Chief Investment Officer, TRUST Mutual Fund, said: "The strong NFO collection and large number of applications reflect investor confidence in our investment ideology and expertise. We are looking to spread the deployment of funds across next few weeks in a judicious and optimal manner. 

Vora added the portfolio's orientation is expected to increasingly favor mid-sized and small companies, adhering to these three main investment themes: premium consumption, financialisation of savings, and technological disruption.

Trust Asset Management Co was launched in February 2021. All this while, it had launched only debt funds. Its first scheme was Trust Banking & PSU Banking Debt Fund. Following that, it had launched overnight, liquid and short-term funds.