Unifi Mutual Fund launches Flexi Cap Fund with GARP strategy to boost long-term growth

Unifi Mutual Fund has announced the launch of its second fund offering, the Unifi Flexi Cap Fund, with the New Fund Offer (NFO) available until 30 May 2025. This open-ended equity scheme targets investments across large-cap, mid-cap, and small-cap stocks, adhering to the Growth at a Reasonable Price (GARP) investment strategy, which aims to strike a balance between growth prospects and reasonable valuations.

The Flexi Cap Fund is designed to build a diversified portfolio of 50–70 stocks, primarily sourced from the Nifty 500 universe. In addition, the fund plans to take tactical positions in companies ranked between 500–750 to capture emerging opportunities in the market. This approach seeks to balance bottom-up stock selection with benchmark alignment over a 3–5-year investment horizon, focusing on capital appreciation.

The fund's investment strategy includes allocating 65–100% of the portfolio to equities, with the remainder spread across debt securities, money market instruments, and units issued by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Investors can enter the fund with a minimum lump sum of Rs 5,000 or start a Systematic Investment Plan (SIP) with as little as Rs 500.

Managed by a team led by Chief Investment Officer V N Saravanan, the fund benefits from over two decades of investment experience. The equity team features Aejas Lakhani, while debt and global allocations are overseen by Karthik Srinivas and Aman Reddy, respectively. Their expertise is expected to steer the fund towards achieving its investment objectives.

"The Flexicap fund is our singular offering in the equity segment and enables us to stay focused on achieving long-term capital appreciation. Our portfolio construction approach would be to typically have 40 to 60 positions across 5 or more sectors offering growth tailwinds and reasonable valuations. We aim to strike the right balance between bottom-up stock selection and being mindful of the benchmark," said Saravanan V N, CIO, Unifi Mutual Fund.

This fund marks Unifi Mutual Fund's second product following the recent launch of the Unifi Dynamic Asset Allocation Fund, which has gathered an AUM of ₹600 crore. According to the press release, the Flexicap Fund is the second of three initial funds Unifi aims to introduce as part of its strategic expansion in the mutual fund space.

Unifi Mutual Fund is supported by Unifi Capital, an asset management firm with a robust 23-year track record and AUM reaching Rs 25,000 crore. This backing provides a solid foundation for the fund's growth prospects and investment strategies.

With this latest offering, Unifi Mutual Fund continues to enhance its portfolio of financial products, aligning with market demands and investor needs. Investors have the opportunity to engage with a fund that seeks to deliver long-term capital growth through a diversified and flexible investment approach while capitalising on emerging market trends.