Invesco India Multi Asset Allocation Fund - Direct (G): NFO Details
Shriram Multi Sector Rotation Fund – Direct (G): NFO Details
Last Updated: 5th November 2024 - 02:32 pm
Shriram Multi Sector Rotation Fund – Direct (G) is an investment strategy that involves shifting investments between different sectors of the economy based on their performance during various occasion or the business cycle. The goal is to maximize returns by investing in sectors that are expected to perform well at specific times, and moving out of sectors that may underperform.
Details of the NFO: Shriram Multi Sector Rotation Fund – Direct (G)
NFO Details | Description |
Fund Name | Shriram Multi Sector Rotation Fund – Direct (G) |
Fund Type | Open Ended |
Category | Sectoral / Thematic |
NFO Open Date | 18-Nov-24 |
NFO End Date | 02-Dec-24 |
Minimum Investment Amt | During NFO and on Continuous basis:For Purchase - Rs. 500/- and in multiples of Re 1/- thereafter. |
Entry Load | -Nil- |
Exit Load | 1% of the applicable NAV, if redeemed within 3 months from the date of allotment. |
Fund Manager | Mr. Deepak Ramaraju and Ms. Gargi Bhattacharyya Banerjee |
Benchmark | Nifty 500 Total Return Index |
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Investment Objective and Strategy
Objective:
The investment objective of the Shriram Multi Sector Rotation Fund – Direct (G) is to generate long-term capital appreciation by employing a quanta mental approach of investing in equity and equity derivatives of specific sectors that are trending due to better earnings expectation. The allocation among sectors and stock selection will be decided by the in-house proprietary quantitative model and further augmented with fundamental analysis.
There is no assurance or guarantee that the investment objective of the Scheme will be achieved.
Investment Strategy:
Shriram Multi Sector Rotation Fund – Direct (G)’s follows sector rotation is an investment strategy that involves shifting investments between different sectors of the economy based on their performance during various occasion or the business cycle. The goal is to maximize returns by investing in sectors that are expected to perform well at specific times, and moving out of sectors that may underperform.
The scheme seeks to generate long-term capital appreciation by employing a quantamental approach of investing in equity and equity derivatives of specific sectors that are trending due to better earnings expectation. The allocation among sectors and stock selection will be decided by the in-house proprietary quantitative model and further augmented with fundamental analysis.
Why invest in Shriram Multi Sector Rotation Fund – Direct (G)?
1. Diversification of Risk
Investing in the Shriram Multi Sector Rotation Fund allows investors to achieve a high level of diversification by focusing on 3 to 6 sectors within a single fund. This approach minimizes the impact of sector-specific downturns on an investor’s overall portfolio. By spreading investments across multiple sectors, the fund reduces the risks associated with market volatility and economic fluctuations. This diversified exposure not only stabilizes returns but also provides the potential for growth by capitalizing on various industry trends, making it an attractive option for investors seeking a balanced risk-reward ratio.
2. Avoid Sector Traps
The Shriram Multi Sector Rotation Fund employs a strategic approach of rotating investments across trending sectors. This means that the fund manager actively monitors market conditions and identifies sectors that are gaining momentum, while simultaneously avoiding sectors that may be underperforming. This tactical rotation helps investors avoid "sector traps," where funds can become overly concentrated in sectors that may be facing headwinds. By adapting to market changes, the fund aims to capture returns from the most promising sectors, thereby enhancing overall performance and reducing the likelihood of significant losses.
3. Tax Efficient for Investors
One of the significant advantages of the Shriram Multi Sector Rotation Fund is its tax efficiency. Unlike traditional investments where capital gains tax may apply each time an investor buys or sells, this fund structure allows for no capital gains tax when the fund manager rebalances the portfolio. This means that investors can benefit from strategic reallocations within the fund without incurring immediate tax liabilities. This tax-efficient feature enables investors to retain more of their earnings, facilitating better compounding of returns over time, making it an appealing choice for those looking to optimize their tax situation while investing.
Shriram Multi Sector Rotation Fund – Direct (G) is suitable for whom?
1. Retirement Planning
The Shriram Multi Sector Rotation Fund Direct (G) can be a valuable tool for those planning their retirement. With its strategic focus on rotating through trending sectors, the fund aims to deliver steady long-term growth. By investing in a diversified portfolio across multiple sectors, it provides the opportunity to accumulate wealth over time, ensuring that you can meet your retirement goals without relying solely on traditional savings. This fund may offer both stability and growth, making it a great choice for those looking to secure a comfortable and financially independent retirement.
2. Child's Education
Saving for a child’s education is a priority for many families, and the Shriram Multi Sector Rotation Fund is designed to support long-term goals like this. By rotating investments across sectors with strong growth potential, the fund enables you to benefit from sector-specific gains while minimizing risks associated with market volatility. This approach can help grow your savings over time, allowing you to confidently meet the rising costs of education. With this fund, you’re not only investing in sectors but also in your child’s future, helping ensure access to quality education.
3. Wedding Plan
For those saving for a wedding, the Shriram Multi Sector Rotation Fund Direct (G) offers a strategic approach to building wealth in the medium to long term. The fund’s focus on sector rotation allows it to adapt to market trends, potentially delivering higher returns by investing in promising sectors. This flexibility can help your savings grow faster than traditional fixed-income options, enabling you to meet wedding expenses with ease. By investing in this fund, you’re preparing financially for one of life’s most significant events, without compromising on quality or experience.
4. Wealth Creation
If your goal is wealth creation, the Shriram Multi Sector Rotation Fund could be an ideal choice due to its active sector rotation strategy, which aims to maximize returns by adapting to changing market dynamics. With a focus on high-growth sectors, the fund provides diversified exposure that can compound over time, making it a valuable addition for those seeking robust portfolio growth. By investing in sectors that are trending, this fund offers a balanced approach to capital appreciation, helping you build a strong financial base and achieve your wealth creation goals.
5. Dream Home
For those working towards owning a dream home, the Shriram Multi Sector Rotation Fund provides a structured path for growing your savings. By focusing on key sectors and rotating investments to capture growth, the fund helps maximize returns over a specific time horizon, aligning well with goals like homeownership. This diversified approach allows your investment to grow steadily while avoiding the risks of sector-specific downturns. With disciplined investments, this fund can help you bridge the gap to afford your ideal home, giving you peace of mind as you work toward this life milestone.
This Scheme is Perfect for Investors Aiming to Grow Wealth and Diversify, Capital appreciation over medium to long term in an actively managed portfolio of equity & equity related instruments of specific identifiable sectors that are performing well. Sustainable alpha over the benchmark.
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