Mumbai: Shriram Asset Management Company Limited — which is part of the Shriram Group — announced that it will be launching its “Shriram Multi Sector Rotation Fund” and described it as the ‘’first of its kind’ in the industry.

 Kartik Jain, MD &CEO, Shriram AMC, said here recently that this Fund aims at giving capital appreciation over the medium to long term in an actively-managed equity portfolio, which rotates across identifiable trending sectors that are performing well.

The Fund’s strategy is to leverage sector rotation to capture opportunities in outperforming sectors, while reducing exposure to underperforming sectors, he said.

“Feedback from advisors indicates that investors often get caught in “sector traps” when they invest in upcoming sectors that are trending due to macro-economic cycles or policy shifts,” he said, adding “While their portfolio benefits from the uptrend, they usually remain invested even when the trend reverses or plateaus, due to inertia or behavioural biases.”

He said that as a result of this, they may end up with lower or even negative annualized returns versus if they had rotated their sector allocation on time.

Shriram Multi Sector Rotation Fund aimed to address this investor pain point to help them avoid “sector traps” and instead, ride sector trends by rotating across sectors in a timely manner, Jain added.

Deepam Ramaraju, Sr Fund Manager, AMC, said “Our two-tier approach of first doing a sector selection based on relative trends, and then doing stock selection, ensures that the fund remains true to label.”

Sector rotation and stock selection based on our proprietary Enhanced Quantamental Investment framework is also aimed at delivering sustainable alpha to our investors over time, he noted.