Mutual Fund NFO: Mahindra Manulife Focused Equity Yojana MF scheme to open soon!

Mahindra Manulife Investment Management has launched ‘Mahindra Manulife Focused Equity Yojana,’ an open-ended equity mutual fund scheme that aims to invest in maximum 30 stocks across market capitalization. The scheme is suitable for investors who are looking for long term capital appreciation. It is also suitable for medium-term investors looking for relatively better risk-adjusted return potential. The New Fund Offer opens on October 26, 2020, and closes on November 9, 2020. The scheme will reopen for continuous sale and repurchase from within 5 business days from the date of allotment.

Mahindra Manulife Focused Equity Yojana under normal circumstances would invest 65% -100% in equity and equity-related securities, up to 35% in debt and money market securities including tri-party repo, reverse repo, and up to 10% in units issued by REITs & InvITs.

Mahindra Manulife Investment Management Private Limited (Formerly known as Mahindra Asset Management Company Pvt. Ltd.) is a 51:49 joint venture of Mahindra & Mahindra Financial Services Limited (MMFSL) and Manulife Investment Management (Singapore) Pte. Ltd. (‘Manulife Singapore’)

Mahindra Manulife Focused Equity Yojana will be a professionally managed agile focused fund that aims to identify the most potential winning ideas through robust research and risk management. The Investment Style for construction of the Scheme’s portfolio of up to 30 stocks will be from across market caps.

In addition, several factors will be considered for building the portfolio such as – domestic and global macro-economic dynamics; stage of the business cycle of companies; absolute versus relative valuation; assessment of portfolio weight based on liquidity and market cap; sector’s future growth outlook; business outlook (priority to 1-3 years of growth); valuation of stock versus future growth; management capabilities and corporate governance.

Ashutosh Bishnoi, MD and CEO, Mahindra Manulife Investment Management Private Limited, said, “Indian economy and the equity markets are poised for a strong recovery, as the economy unlocks and we see improvement in corporate performance. Mahindra Manulife Focused Equity Yojana scheme is suitable for medium to long term investors looking for better risk-adjusted market returns. The focused funds have the advantage to define their own market cap mix and hence the flexibility to find opportunities anywhere in the equity market. The selection of potential winners is done through research, adequate quality check, and by following a robust risk management process. The whole attempt is to ensure a better risk-adjusted return on investment”.