Mahindra Manulife Mutual Fund launches small cap fund


Mahindra Manulife Mutual Fund has launched the Mahindra Manulife Small Cap Fund, an open-ended equity scheme predominantly investing in small cap stocks. The scheme will invest a minimum of 65% of net assets in equity and equity related instruments of small cap companies. It may take exposure in equity derivative instruments to the extent of 50% of the equity permitted component. The fund will be managed by Abhinav Khandelwal and Manish Lodha.

According to the fund house, the scheme is suitable for investors seeking long term capital appreciation and Investment predominantly in equity and equity related securities of small cap companies. Small cap mutual funds have potential to create wealth and generate alpha over the long term, as they provide exposure to companies which are potential market leaders in the industries they operate in and are likely to become future midcaps as they scale up.

“The Indian economy is well poised and has potential to be one of the leading economies in the world over the coming decade. This may throw unprecedented opportunities across sectors and businesses, with many smaller companies using this possibility to become much larger over time. Small cap funds would be an ideal option for long term investors looking to take advantage of this change and should become a core part of investor portfolios. Given our past track record in looking at these companies across our diversified fund range, we feel this is the right time to bring this product to market, and help our investors realize their longer-term wealth creation aspirations,” said Anthony Heredia, MD & CEO, Mahindra Manulife Mutual Fund.

Krishna Sanghavi, Chief Investment Officer – Equity, Mahindra Manulife Mutual Fund, said: “The investment objective of the fund is to generate long term capital appreciation by investing in a diversified portfolio of equity & equity related securities of small cap companies. Indian small caps offer a wide range of companies that are likely to participate and grow with the Indian economy as India moves from 7th largest to 3rd largest economy in terms of size. The economy offers opportunities for many small cap companies to grow to be mid cap companies in future. Small caps as a segment also allows a wider choice in sector allocation. Valuation-wise, small caps currently offer a good opportunity for investors who want to build a long-term equity portfolio.”

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