Mumbai: TRUST Mutual Fund is introducing the TRUSTMF Small Cap fund – an open-ended equity scheme focusing on small stocks – that will be benchmarked against the NIFTY SmallCap 250 TRI Index, offering investors an opportunity to access hi-growth sectors and emerging themes.
The New Fund offer will be open for subscription from October 11 to October 25, 2024 with primary goal to generate long-term capital appreciation by investing mainly in equity and equity-related securities of small-cap companies.
Sandeep Bagla, Chief Executive Officer of TRUSTMF, said that the new SmallCap Fund is designed to capture the high-growth phase of a company’s lifecycle — where returns have promising potential – as the SmallCap market offers a vast array of investment choices, including sectors like consumption, financialization and physical asset creation that have a long runway for growth.
Noting that, since 2020, the small-cap universe (Mcap>2000 crs) has grown nearly fourfold while offering a wide range of investment opportunities across high-potential sectors, he said the new Fund is built to leverage these opportunities while maintaining a disciplined investment strategy aimed at sustainable wealth creation for its investors.
Mihir Vora, Chief Investment Officer at TRUST MF, noted that TRUST MF’s strong research foundation helped identify promising stocks.
Noting that GST has created a level playing field with Small Caps – being at par with Large Caps — and also benefiting from the unorganized to organized space, he said the Small Caps universe has witnessed a four-fold increase since 2020 and is significantly part of the market with a $1 trillion market capacity.
He said a 10-year study showed: three Small Caps giving average multiple of 43x; 43 Mid Caps becoming 16x; and 112 remaining Small Caps with 5x growth.
Replying to questions, he pointed out that Pharma and IT had made India the number one globally because of the private sector being allowed in these markets, including the domestic supply chain for procurement of defence products market worth Rs 10 lakh crores.
