Mihir Vora, Chief Investment Officer (CIO), Trust Mutual Fund

Trust Mutual Fund (MF) entered the equity MF space on Wednesday with the launch of its flexicap scheme. The fund house, which launched its first scheme in January 2021, was so far focused only on the debt space — managing close to Rs. 1,200 crore across 7 debt schemes.

Trust MF said its equity schemes will follow a differentiated strategy, wherein the focus will be on ‘terminal value’ with a ‘Growth at Reasonable Valuations’ (GARV) approach.

According to the fund house, terminal value (TV) is the value of a company beyond the foreseeable horizon. “TV is a function of leadership, intangible assets and megatrends. It helps identify the true potential of a growth company and helps capture the full value creation,” Trust MF said in a press release.

Last year, the fund house had hired Mihir Vora, former chief investment officer (CIO) of Max Life Insurance, to build the equity investment team and head investments across equity and debt.

Vora said they have identified a few themes that are expected to play out over the long term. These themes include consumption and financialization, physical asset creation due to growing manufacturing heft, progress in urbanization, infrastructure and real estate, and digitization, he said. The fund house also estimates a consumption premiumization in the next few years on the back of 4x growth in high-income households to 29 million by 2030.

“We are growth investors, and we believe that our TV investing framework and GARV approach offer a differentiated alternative for equity fund investors. GARV is an investment approach that looks at identifying stocks with strong growth potential at reasonable valuations. TRUST MF Flexicap Fund encompasses this philosophy, and the mandate enables the fund to adapt and navigate through various market conditions for sustainable investment success,” said Vora.

Sandeep Bagla, the CEO of Trust MF, said the asset manager plans to launch 3-4 more equity schemes over the next two years.

First Published: Apr 03 2024 | 7:28 PM IST

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