Mutual Fund News : Mahindra Manulife Fund Launches Mahindra Manulife Focused Equity Yojana

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Mahindra Manulife Mutual Fund has launched an open-ended equity scheme Mahindra Manulife Focused Equity Yojana.

The fund is classified as Focused Equity Fund and will be investing in a maximum 30 stocks across market capitalization (i.e. Multicap).

The investment objective of the scheme is to generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of maximum 30 companies across market capitalization. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Under normal circumstances, Mahindra Manulife Focused Equity Yojana will predominantly invest 65% to 100% of its assets in Equity & Equity Related Instruments, whereas up to 35% of its assets can be invested in Debt & Money Market Instruments. The fund also holds flexibility to invest up to 10% of its assets in Units issued by REITs and InvITs.

The fund manager of the scheme will follow an active management style.

Mahindra Manulife Focused Equity Yojana will focus on creating an appropriate diversified portfolio of companies with a long term perspective. It will follow a top down approach to select sectors and follow a bottom up approach to pick stocks across the sectors based on the quality of business model and quality of management.

The fund manager will assess the quality of business model and quality of management by evaluating past track record and/or future outlook.

The selection of companies will be guided by a combination of one or more factors like:

a) profitable growth in good or bad cycles;

b) Optimum utilization of capital and/or capacity;

c) leadership shown in the industry in which they operate;

d) expectations of a turnaround in business momentum; and

e) track record of consistent & long term execution potential.

The scheme’s performance will be benchmarked against NSE 500 Total Return Index (TRI).

It will be managed by Mr Krishna Sanghavi.

The NFO opens for subscription on October 26, 2020 and closes on November 09, 2020. The scheme will reopen for fresh investments within Five Business Days from the date of allotment.

The fund NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 1,000 and in multiples of Rs 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).