Two years after launching, Trust Mutual Fund has launched its first equity scheme on Flexi Cap with the concept of terminal value investing to deliver best possible long term returns to investors. The NFO will open for subscription between April 5 and 19.

As part of terminal value investing, the fund house will identify mega trends and spot the right company based on 10-15 years earning potential rather than the industry practice taking investment call based on 3-5 years data.

Once the long term earning potential is derived, investments are made even if the valuation of stock has turned pricy in the short-term.

Mihir Vora, Chief Investment Officer, Trust Mutual Fund, said the fund house believes in Terminal Value Investing framework and Growth at Reasonable Valuations approach offers a differentiated alternative for equity fund investors.

GARV is an investment approach that looks at identifying stocks with strong growth potential at reasonable valuations which will enable the fund to adapt and navigate through various market conditions for sustainable investment success, he said.

Flexi-cap fund will filter in 200-250 stocks from a universe of 900-1000 growth-oriented companies and prepare a portfolio of 40-60 stocks.

Sandeep Bagla, CEO, Trust Mutual Fund, said though the markets have hit a new high the valuations are at a reasonable level given the growth potential and investors should not be worried about short-term market rally.

Trust Mutual Fund launched its first scheme in January 2021. Currently, it has seven schemes and registered an average asset under management of ₹1,124 crore as of March-end.