Stocks

Mahindra Manulife launches focused fund NFO

Our Bureau Mumbai | Updated on October 26, 2020

Mahindra Manulife Mutual fund has launched ‘Focused Equity Yojana,’ an open-ended equity scheme, that will invest in maximum 30 stocks across market capitalisation. The scheme is suitable for investors with medium and long term capital appreciation with relatively better risk-adjusted return potential. The New Fund Offer will close on November 9.

Ashutosh Bishnoi, Managing Director, Mahindra Manulife Investment Management, said Indian economy and the equity markets are poised for a strong recovery, as the economy unlocks and corporate performance improves.

Own mix of m-caps

The focused funds have the advantage to define their own market cap mix and has the flexibility to find opportunities across equity segment, he said.

As per SEBI guidelines, a focused fund can invest in a maximum of 30 stocks unlike other equity MFs which typically hold 50-100 stocks. Some focused mutual funds also state their objective to focus on the large-cap or mid-cap stocks. Other funds do not specify any such category focus and follow a bottom-up stock selection investment strategy.

The objective of focused funds is to deliver high returns by investing in a limited number of quality companies with growth potential.

Though the objective of MFs is to provide optimal diversification beyond a limit, diversification becomes pointless and may lead to lower returns. The entire strategy of focused funds is to hit the bull’s eye with the right stocks selection and try to earn a high return.

Published on October 26, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like