TRUSTMF Multi Cap NFO Opens for Subscription – Aiming for Long-Term Growth with Diversified Equity Exposure

The NFO is an open-ended equity mutual fund scheme designed to offer investors an opportunity to participate in India’s growth story by investing across large-cap, mid-cap, and small-cap stocks. The fund aims to generate long-term capital appreciation by building a well-diversified portfolio of companies with strong fundamentals and growth potential. With its multi-cap approach, the TRUSTMF MULTI CAP FUND allows investors to benefit from the stability of large-cap stocks, the growth potential of mid-cap companies, and the high-return possibilities of small-cap businesses. The fund also follows a disciplined investment process and includes debt and derivatives exposure to manage risk and optimise returns.

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Key Features of this TRUSTMF Multi Cap Fund

• Opening Date: 30th June 2025
• Closing Date: 14th July 2025
• Exit Load: 1% - If redeemed/switched out within 180 days from the date of allotment.
  Nil - if redeemed/switched out after 180 days from the date of allotment.
• Minimum Investment Amount: ₹1,000

Objectives of the TRUSTMF Multi Cap Fund

The primary objective of the TRUSTMF Multi Cap Fund - Direct (G) is to generate long-term capital appreciation by predominantly investing in a diversified portfolio of equity and equity-related instruments across large-cap, mid-cap, and small-cap stocks. However, there is no assurance or guarantee that the scheme’s investment objective will be achieved.

Investment Strategy of the TRUSTMF Multi Cap Fund

• Minimum 25% exposure in each market capitalisation segment – large-cap, mid-cap, and small-cap stocks
• Stock selection based on megatrends, leadership potential, business longevity, and intrinsic company strengths
• Debt investments to maintain a balance between safety, liquidity, and profitability
• Use of derivatives for hedging, portfolio rebalancing, and optimising returns as permitted by SEBI
• Active management of portfolio turnover to optimise returns and minimise risk
• Focus on risk-adjusted returns with a disciplined investment framework

Risks Associated with the TRUSTMF Multi Cap Fund

• Market risk due to fluctuations in equity prices, particularly in small and mid-cap stocks
• Liquidity risk as certain investments may be difficult to buy or sell without impacting prices
• Credit risk from potential defaults in debt investments
• Interest rate risk that can affect the value of debt securities
• Concentration risk if exposure to certain sectors or stocks becomes high
• Derivatives risk, including imperfect correlation with underlying securities and execution challenges
• General economic, political, and regulatory risks impacting markets

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Risk Mitigation Strategy by the TRUSTMF Multi Cap Fund

The TRUSTMF Multi Cap Fund - Direct (G) incorporates a multi-layered risk mitigation approach to manage various investment risks effectively. Diversification across market capitalisations and sectors reduces concentration risk. The fund manager closely monitors liquidity at the portfolio construction level to ensure timely redemption payments. To manage derivatives-related risks, adequate internal controls and monitoring mechanisms are in place. The fund manager follows a disciplined investment approach with regular monitoring of sector and stock-level exposures, aiming to control portfolio volatility. Furthermore, debt investments are selected based on parameters like credit quality, maturity profile, and prevailing interest rate outlook to reduce fixed-income-related risks. Overall, the scheme aims to optimise returns while keeping risk aligned with its investment objective.

7. What Type of Investor Should Invest in TRUSTMF Multi Cap Fund?

• Investors seeking long-term capital growth with exposure to large-cap, mid-cap, and small-cap companies
• Those comfortable with market volatility and the inherent risks of equity investing
• Investors looking to diversify their portfolio across different market segments
• Individuals with a medium to long-term investment horizon and ability to stay invested through market cycles
• Investors who want a professionally managed, multi-cap equity investment option with active risk management