Latest news with #TRUSTMutualFund
Mint
3 days ago
- Business
- Mint
IT sector not broken, but evolving, says TRUST MF's CIO Mihir Vohra; shares top sectoral bets
Mihir Vora, CIO, TRUST Mutual Fund, believes that the Indian stock market could step out of its consolidation zone once global volatility subsides and investor focus returns to earnings. Meanwhile, Vohra remains unperturbed by the ongoing FII selloff, as DII support and SIP inflows bolster confidence in equity demand. He is bullish on select sectors like infrastructure, logistics, and defence suppliers, NBFCs, among others. Edited excerpts: The Nifty has been churning in a tight band for several weeks. The domestic and global macroeconomic and geopolitical setup has many moving parts, and markets are probably waiting for a reduction in uncertainty. Globally, US trade negotiations are still on, and the US Dollar continues to be weak in spite of high bond yields. Domestically, the long-term macro parameters are healthy – low inflation, improving current account deficit and fiscal deficit. Consumption indicators are a mixed bag, and credit growth has not yet picked up in spite of ample liquidity and rate cuts. In the short term, the earnings season has seen a mix of negative and positive surprises. Sustained earnings growth remains key for the market. If global volatility subsides and investor focus returns to domestic earnings, that could be enough to lift sentiment. Clarity on a U.S.–India trade agreement by the August 1 deadline can also be a catalyst. Foreign portfolio investors have turned cautious again — derivative positioning suggests the most bearish sentiment in months. That may continue until we get clear signals on U.S. Fed policy or trade developments. In the medium to long-term, if the US Dollar continues to remain relatively weak, we should see sustained flows to countries like India. We see FPI selling as cyclical rather than structural. In time, India's superior long-term macro, demographics and higher growth should bring global interest back. India also has a strong internal support system: domestic institutions remain net buyers, and record retail SIP flows continue to underpin demand. Overall, we have an underweight stance in the IT sector. We are tackling the sector exposure selectively, preferring midcap IT names and digital infra providers with stronger growth visibility, rather than overcrowded large caps. Even within the blue-chips, firms executing well on AI/automation and client-based cost takeout remain interesting. The sector isn't broken — it's just evolving. While the leading IT giants delivered subdued numbers — flat revenues, soft global deal wins — valuations are now trading closer to historical norms than early 2024 extremes. Our growth conviction remains highest in capex, power transmission, infrastructure logistics, and defence suppliers—segments with visible order books, operating leverage, and a longer runway of growth. However, we are selective as these segments have become quite popular and valuations are not uniformly attractive. Financials offer opportunities in NBFCs and banks, with expectations of improving credit growth and asset quality. Auto ancillaries and engineering services/export plays are also showing promise as the global capex cycle recovers. In healthcare, the stories are more stock-specific, and we like the CDMO space and hospitals. After sharp rallies in many names, investors have started booking profits. The pullback is a natural consolidation, not a capitulation. The long-term fundamentals — rising defence budgets, dual-use platform opportunities, and improving export arcs — remain intact. Stock selection is critical now. We favour robust balance sheets, clear execution histories, and firms with pipeline visibility. Yes, we launched our third equity fund, the Multicap Fund. This continues our efforts to offer funds in all the core categories to our investors and distributors, the first two being the Flexi Cap and Small Cap funds. The Multicap category is a core category and is suitable for most investors who want a diversified exposure to the stock market. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hans India
03-07-2025
- Business
- Hans India
TRUST Mutual Fund Announces the Launch of TRUSTMF Multi Cap Fund
TRUST Mutual Fund is pleased to announce the launch of its latest offering – the TRUSTMF Multi Cap Fund, an open-ended equity scheme that will invest across large cap, mid cap, and small cap stocks. The New Fund Offer (NFO) opened on June 30, 2025, and shall close on July 14, 2025. Designed for investors seeking a diversified and disciplined approach to equity investing the fund offers a comprehensive solution with a focus on long-term capital appreciation and a balanced risk-return profile across market cycles. Key Highlights: · Minimum 25% allocation each to large, mid, and small cap stocks, ensuring consistent and structured diversification · 40–60 high-conviction stocks across market segments, backed by strong research and conviction · Benchmarked to NIFTY 500 Multi Cap 50:25:25 TRI, reflecting comprehensive market representation · Stock-picking approach focused on identifying potential high growth opportunities · A one-stop solution for diversified equity exposure within a single, well-structured investment vehicle · Potential High active share, a key factor for potential alpha generation Investment Philosophy The TRUSTMF Multi Cap Fund will follow a disciplined, research-backed investment process that will primarily focus on: • Terminal Value Investing • GARV (Growth at Reasonable Valuation) Approach India's evolving equity landscape—with over 1,140 listed companies having market capitalizations above ₹2,000 crore—offers an ideal playground for such a multi-dimensional strategy (source AMFI, December 24) Commenting on the launch, Sandeep Bagla, CEO, TRUST Mutual Fund, said: 'The TRUSTMF Multi Cap Fund is a strategic addition to our product suite. By committing to a disciplined allocation across market caps, the fund aims to blend stability, growth, and innovation. It aims to minimize timing biases and offers investors a robust platform for long-term wealth creation.' Mihir Vora, CIO, TRUST Mutual Fund, added: 'The power of compounding unfolds with patience and discipline. Our TRUSTMF Multi Cap Fund harnesses high-conviction ideas across segments using our robust and disciplined equity investment philosophy. This portfolio is built not just to perform through cycles, but to thrive amid India's structural growth story.' Aakash Manghani, Fund Manager – Equities, TRUST Mutual Fund, said: 'India's dynamic equity environment presents diverse opportunities. The TRUSTMF Multi Cap Fund takes a disciplined approach to capture these, aiming to deliver long-term wealth creation opportunities through deep research and market insight. Why Multi Cap? · Disciplined Diversification · Balanced Risk & Reward
Economic Times
03-07-2025
- Business
- Economic Times
NFO Update: TRUST Mutual Fund announces launch of multicap fund
TRUST Mutual Fund has announced the launch of its latest offering – the TRUSTMF Multi Cap Fund, an open-ended equity scheme that will invest across large cap, mid cap, and small cap stocks. The New Fund Offer or NFO of the fund is open for subscription and will close on July 14. Also Read | Record inflow of over Rs 15,000 crore in May. What is making arbitrage mutual funds gain investors' interest? The fund is designed for investors seeking a diversified and disciplined approach to equity investing. The fund offers a comprehensive solution with a focus on long-term capital appreciation and a balanced risk-return profile across market cycles, according to a release by the fund multi cap fund will have a minimum 25% allocation each to large, mid, and small cap stocks, ensuring consistent and structured diversification. Around 40–60 high-conviction stocks across market segments, backed by strong research and conviction The fund will be benchmarked to NIFTY 500 Multi Cap 50:25:25 TRI, and the stock-picking approach will be focused on identifying potential high growth opportunitiesThe TRUSTMF Multi Cap Fund will follow a disciplined, research-backed investment process that will primarily focus on identifying companies beyond the foreseeable horizon primarily driven by leadership, Intangibles and megatrends, ensures growth-driven stock selection that are reasonably priced to their earnings potential.'The TRUSTMF Multi Cap Fund is a strategic addition to our product suite. By committing to a disciplined allocation across market caps, the fund aims to blend stability, growth, and innovation. It aims to minimize timing biases and offers investors a robust platform for long-term wealth creation,' said Sandeep Bagla, CEO, TRUST Mutual Read | JioBlackRock launches mutual fund access on MyJio, calls it a new era of investing 'The power of compounding unfolds with patience and discipline. Our TRUSTMF Multi Cap Fund harnesses high-conviction ideas across segments using our robust and disciplined equity investment philosophy. This portfolio is built not just to perform through cycles, but to thrive amid India's structural growth story,' said Mihir Vora, CIO, TRUST Mutual Fund. 'India's dynamic equity environment presents diverse opportunities. The TRUSTMF Multi Cap Fund takes a disciplined approach to capture these, aiming to deliver long-term wealth creation opportunities through deep research and market insight,' said Aakash Manghani, Fund Manager – Equities, TRUST Mutual fund is suitable for investors seeking long-term capital appreciation and want investment predominantly in equity and equity related instruments across large cap, mid cap, and small cap stocks. Why a multi cap now? The fund house focused on a multi cap fund now as it enforces structured exposure of minimum 25% each across all market caps to prevent concentration risk, combines the resilience of large caps with the growth potential of mid and small caps, and minimizes emotional investment decisions and market timing errors.
Time of India
26-06-2025
- Business
- Time of India
How Mihir Vora picks stocks using Gorilla hunt and a LIM test
From a jungle of 1,100 companies, TRUST Mutual Fund CIO Mihir Vora hunts down just 50 using a playbook built on ROCE filters, terminal value theory, and a keen eye for gorillas riding megatrends . Edited excerpts from a chat on market outlook, stock picking strategy and sectoral ideas: The markets have rallied sharply from April lows. How sustainable do you think this uptrend is, especially in the context of rising valuations and global uncertainties? The recovery we've seen since April isn't just sentiment-driven — it's built on some solid macro shifts. Domestically, Q4 GDP growth surprised positively at 7.4%, inflation continues to trend well below the RBI's comfort zone, and liquidity has decisively turned surplus. The RBI has moved clearly into pro-growth mode with rate cuts, CRR easing, and sizable OMO purchases. On top of that, the ₹2.7 lakh crore dividend from the RBI to the government adds further fiscal support. Globally, while headlines around tariffs and fiscal risks in the US remain in play, we're seeing signs of a peak in rate tightening. Markets are increasingly pricing in policy easing across major economies as we have seen Europe, Switzerland, India etc. already beginning the rate-cut cycle and there is also intense pressure in the US to cut rates. Live Events Domestically, government spending has accelerated again. There are green shoots in private sector investment and rural demand seems to be improving. The recently concluded earnings season was good and there were more positive surprises than negative. Profit growth for mid and small caps was higher. Moreover, the June quarter results may see further improvement in growth as the base last year was weak. The weak spots are the tepid credit growth in the banking system and some questions on urban consumption growth. So yes, while valuations are elevated in parts, the broader context remains supportive. Earnings are coming through, liquidity is abundant, and policy remains growth-focused. The uptrend looks sustainable, though we do expect pockets of volatility due to global geopolitical developments. Many investors are again raising eyebrows on valuations in the small and midcap space. As someone managing a small-cap fund, how do you approach stock selection at a time when fear of overvaluation is rising? First of all, the small-cap universe is too vast to make an overall statement on valuations. There are over 1100 stocks with a market cap of over Rs 2,000 crore. Certainly not all of these are expensive. I just need to select 50 stocks out of the vast universe, which is just 5% of the relevant stocks in numbers. So, there is always scope for stock picking in the smallcap and midcap space. Second, the small and midcap segments went through a meaningful correction over the past few quarters — both in price and time. That reset valuations to a more reasonable zone, especially for quality names. The earnings season has seen more positives for midcaps. Moreover, valuations should not be seen only through the prism of multiples (price/earnings, price/book value etc.) - we need to adjust multiples for growth prospects, especially the longer-term growth potential. The market gives a disproportionate value to long-term profit growth, especially for high-growth stocks where the runway of growth is for many years, not just the next 2-5 years – i.e., these stocks have a high terminal value. So, if we just focus on near-term multiples for valuations, these stocks will always look expensive, but in real life the earnings compounding takes care of the long-term returns. So, as fund managers we keep doing what we are supposed to do i.e. meet as many companies as possible, kick the tyres, understand the business, take a view on growth prospects and keep being on top of your game of picking stocks. What filters do you use to separate sustainable smallcap stories from those riding temporary momentum? Our process remains fundamentals-driven. We focus on companies where growth is visible, and capital efficiency is sustainable. Credibility of management and promoters is non-negotiable. We rely on a layered approach. That helps weed out the short-term momentum names. There are about 1100 companies with a market capitalization of over Rs. 2,000 cr. Out of these about 600 fall into segments and sub-sectors which we believe have higher growth potential. We then apply filters of ROCE, cash flow generation (if not historical, then at least prospective), promoter ownership, emerging moats, and other sanity checks to shrink the list to about 250 stocks which we actively study. To select stocks, we use our Growth at Reasonable Valuation (GARV) and Terminal Value Investing (TV) framework. The TV approach hunts 'Gorillas': rare, dominant, unchallenged franchises whose competitive edge rests on intangibles—technology, brands, IP—and that ride long-duration megatrends. Our LIM framework (Leadership, Intangibles, Megatrends) helps judge whether a business can keep compounding well beyond the explicit forecast horizon, justifying higher valuations (on near-term earnings) when the growth runway is exceptionally long. The final portfolio consists of about 40-60 stocks. We sell when 1) the initial thesis of investing is not panning out as expected 2) valuations become insane or 3) we have other, more attractive opportunities. Consumption, capex, and financials seem to be the market's favourite themes right now. Are there any sectors you believe are flying under the radar? Absolutely. While capex and financials have clearly led the recovery, there are several sectors that we believe are only now starting to get noticed. While defence, railways, etc. have done well within the industrial basket, there are segments like construction which have lagged. In financials, we have seen capital market plays doing well but banks and NBFCs have lagged. Consumer discretionary segments like automobiles (two-wheelers as well as four-wheelers), white goods have also lagged. Such segments can now start performing. Nifty now has 3 stocks - Trent, Jio Financial and Eternal - trading above 100 TTM PE levels. Do you see this trend as a sign of market accepting triple-digit PE stocks as part of the mainstream narrative? In established high-growth companies, we are seeing that the market prices in high Terminal Value i.e the ability of these companies to scale, reinvest, and capture fast-growing markets for a long period of growth. That can justify elevated multiples but it's not a free pass. Investors are quick to reassess if execution falters. So while some businesses are being rewarded with high PEs, that premium is conditional. It's based on consistent delivery, expanding addressable markets, and reinvestment discipline. In the case of cash-burn models, the current earnings are less relevant and the valuations are based on the market's expectation of the profits after a few years. The current valuation would be based on the total addressable market, value per subscriber, growth rates etc. We are not averse to investing in companies which look expensive based on near-term profit multiples if we believe that the runway of high-growth is long. However, we keep testing the hypothesis at regular intervals. We've seen promoters, PEs, and VCs aggressively selling stakes recently. Do you see supply-side risk to the market? Some supply pressure is inevitable when markets rally — and to an extent, it's healthy. It improves free float and brings price discovery in names that were tightly held. In many cases, we've seen these sales met with strong institutional demand, especially from domestic mutual funds and insurers. We look at the intent behind the sale. If promoters are monetizing to invest back into the business, or if PE/VC funds are exiting after long holding periods, it's not a concern. What we avoid are situations where exits are paired with governance red flags or signs of operational stress. How should investors think about sector rotation right now? Are we seeing a change in leadership in Indian equities? Yes, there is a clear broadening of leadership. Industrials and financials may have been the early movers, but we're now seeing traction in pharma, real estate, defence and smallcaps. We focus on themes with sustained earnings momentum and not just those that have worked in the past. Being flexible, data-driven, and valuation-aware is key in managing sector rotation. We're positioning ourselves to benefit from emerging themes like defence, power infra, railways, electronic manufacturing, chemicals, auto ancillaries, capital markets and domestic capex plays — all of which have legs for a multi-year run. If you had ₹10 lakh to invest today, how would you split it between equities, debt, and gold/silver? I would advocate a balanced, growth-oriented allocation: 60-70% equities for capital growth, 10-20% to gold/ silver primarily as a hedge against global volatility, inflation or geopolitical surprises and 20-25% to fixed income which stand to benefit as rates decline further. The underlying idea is to participate in India's long-term growth story, while keeping some ballast through fixed income and tactical commodities exposure. India continues to stand out globally — we have macro stability, policy support, and earnings breadth all moving in the right direction. While pockets of the market are richly valued, the opportunity set remains deep and diverse. The risks are mostly global in nature. For investors, the key is to stay invested, stay selective, and think long term.
Mint
11-06-2025
- Business
- Mint
Overweight on financials, industrials; power, railways, defence look attractive for long term: Mihir Vora, TRUST MF
Expert view on markets: Mihir Vora, CIO at TRUST Mutual Fund, believes the medium-term outlook of the Indian stock market is positive. He underscored that healthy earnings and valuation comfort are driving the mid and small-cap segments. In an interview with Mint, Vora shared his views on markets and sectors he is positive about. Here are edited excerpts of the interview: The medium-term outlook is positive, albeit with risks in the background, and there are quite a few potential triggers which can potentially take the market to new highs. Macro conditions in India are firming up. GDP for Q4FY25 surprised positively at 7.4 per cent, driven by a steady expansion in private consumption on the rural side and capex momentum in government spending. CPI inflation eased to 3.2 per cent, staying well below the RBI's upper tolerance. Forex reserves climbed to $693 billion, liquidity conditions turned surplus, and the manufacturing PMI remained robust at 57.6, signalling sustained momentum. May saw the highest monthly FPI inflows in eight months, while DIIs continued their net buying streak. The market has re-rated sharply over the past year, but with forward earnings growth of 12-15 per cent, supported by private capex, corporate deleveraging, and strong domestic demand, there's fundamental backing to this optimism. The recent terrorist event and India's swift, decisive response led to a surge in domestic confidence. Strategically, India's firm stance against future attacks and its demonstrated military precision added to the country's geopolitical credibility. RBI provided an extra boost to growth sentiments with a sharp rate cut and CRR cut, clearly indicating a pro-growth stance as inflation is under control. The global backdrop is positive, and many central banks are cutting rates. Overall, financial conditions are easy and conducive for risk assets. A deeper correction would probably be triggered by external factors rather than internal. Trade wars, currency volatility and other geopolitical issues may impact the markets in the short term. The midcap and small-cap segments had seen a time and price correction in the last six months. This led to valuations going from expensive to a more reasonable zone. The earnings season has been quite good for midcaps, which has triggered the success of these and small-caps. Most of the sectors doing well are the ones that did well in the previous run. And now, with the RBI policy, even the financials are catching up. We continue to believe that the domestic sectors will do better than the global sectors. We are positive on financials, industrials, selected utilities and selective consumer discretionary segments. The other places where we see good growth on a long-term basis are segments like power transmission, distribution, railways, defence, renewables, etc. We have been bullish on defence for quite some time and continue to do so. We believe it is a very long-term story as the segment has just begun to emerge in the past few years. It is not very often that you can get entry into a segment with a long runway just as the sector is beginning to open up and grow. The key trigger is the opening up of the sector to the private sector. Now, apart from local demand, we can cater to the global defence markets, which have far larger potential. As far as PSUs are concerned, we do not consider all PSUs as a monolithic segment. It consists of stocks in many different sectors, and we analyse each stock on a standalone basis rather than using the same broad brush to paint all of them. Macro fundamentals, policy clarity, and broadening sectoral participation provide a solid backdrop. While global risks remain, India's resilience and reform-driven growth make it a compelling structural story. Volatility may continue, but investors with a disciplined asset allocation and long-term perspective should stay invested. We are positive on the domestic sectors compared to the global. We are overweight on financials, industrials and underweight in consumer staples, utilities, energy and consumer discretionary. India has the least dependence on exports as a percentage of GDP. While there will be a global impact and India may not remain completely untouched, we believe that we will be able to tide out through the crisis with a good diplomatic approach and the strength of domestic demand. India will continue to remain the fastest-growing large economy in the world. Inflation is not a concern as our fiscal and monetary policy has been quite prudent. We are seeing flows in both our funds, and even our small-cap fund is close to ₹ 1,000 crore in assets. We follow a market-cap agnostic approach and pick and choose the best stocks across all market-cap buckets. While the allocation changes from time to time, currently, less than 50 per cent of our portfolio is allocated to large caps. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
