New large and mid-cap mutual fund opens for subscription: Key details

The New Fund Offer (NFO) opened on July 15 and will remain open for subscription until July 29.

The scheme is the fund house’s third equity-oriented offering and fourth mutual fund scheme.

The fund aims to generate long-term capital appreciation through a research-driven investment approach by investing in a mix of established large-cap companies and emerging mid-cap businesses.

In line with the Securities and Exchange Board of India (SEBI) regulations for the category, the scheme will invest at least 35% of its portfolio each in large-cap and mid-cap stocks. It may also allocate up to 30% of its assets to other equity opportunities, debt and money market instruments, Infrastructure Investment Trusts (InvITs), and gold and silver-related instruments.

Sunil Singhania, Founder of Abakkus Asset Manager, said the large and mid-cap category offers investors exposure to both established companies and emerging businesses with long-term growth potential.

Vaibhav Chugh, Chief Executive Officer of Abakkus Mutual Fund, said the fund house expects India’s long-term growth outlook to continue despite near-term global uncertainties and believes the category offers a balance between stability and growth opportunities.

Pratish Krishnan, Senior Fund Manager at Abakkus Mutual Fund, said the scheme will focus on identifying companies with strong management quality, scalable earnings, reasonable valuations and structural growth drivers.

According to the fund house, all its schemes follow an in-house investment framework called ‘MEETS’, which evaluates companies based on management quality, earnings, events and trends, valuation timing, and structural growth opportunities.