Publish Date:
Mahindra Manulife Mutual Fund has launched an open-ended equity scheme - Mahindra Manulife Flexi Cap Yojana.
It is an open-ended dynamic equity scheme investing across large cap, mid cap & small cap stocks.
Accordingly, the investment objective of the scheme is to generate long term capital appreciation by investing in a diversified portfolio of equity and equity-related securities across market capitalization. However, there can be no assurance that the investment objective of the Scheme will be achieved.
Under normal circumstances, 65% to 100% of the funds portfolio will be invested in equity & equity related instruments of largecap, midcap and smallcap companies. The scheme may also invest upto 35% of its assets in Debt and Money Market Securities (including TREPS (Tri-Party Repo), Reverse Repo). It can also invest upto 10% of its assets in Units issued by REITs & InvITs.
The investment strategy of Mahindra Manulife Flexi Cap Yojana as mentioned in the Scheme Information Document (SID) is as follows:
The Fund Manager will follow an active management style. The Scheme 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. Quality of business model and quality of management will be assessed 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:
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profitable growth in good or bad cycles;
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Optimum utilization of capital and/or capacity;
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leadership shown in the industry in which they operate;
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expectations of a turnaround in business momentum; and
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track record of consistent & long term execution potential.
By utilizing a holistic risk management strategy, Mahindra Manulife Flexi Cap Yojana will endeavour to manage risks associated with investing in equity markets. It has identified the following risks and designed risk management strategies, which are embedded in the investment process to manage these risks:
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Quality risk – Risk of investing in unsustainable/weak companies
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Price risk - Risk of overpaying for a company
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Liquidity risk- High impact cost of entry and exit
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Volatility risk –Volatility in price due to company or portfolio specific factors
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Event risk - Price risk due to a company/sector specific or market event
Mahindra Manulife Flexi Cap Yojana’s performance will be benchmarked against NIFTY 500 Index TRI (Total Return Index).
Mahindra Manulife Flexi Cap Yojana will be managed by Mr Manish Lodha and Ms. Fatema Pacha.
The NFO opens for subscription on July 30, 2021, and closes on August 13, 2021. The scheme will reopen for continuous sale and repurchase from August 25, 2021.
The fund’s NAV is priced at Rs 10 per unit during the NFO period. The minimum subscription amount is Rs 1,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal Option (Re-investment and Pay-out facility).