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Shriram Asset Management Company, part of the Shriram Group, has announced the launch of India’s first Multi-Sector Rotation Fund, set to open for subscription on November 18, 2024, and close on December 2, 2024.
This open-ended equity scheme introduces a unique investment approach by focusing on rotating across trending sectors, allowing investors to capture sectoral growth while avoiding prolonged exposure to underperforming areas.
The fund’s performance will be benchmarked against the Nifty 500 Index.
The Shriram Multi-Sector Rotation Fund will actively manage an equity portfolio by identifying and investing in a minimum of three to six sectors showing positive trends.
The selection process is guided by Shriram AMC’s proprietary Enhanced Quantamental Investment (EQI) framework, which combines quantitative sector analysis with fundamental insights.
This framework examines key factors like macroeconomic indicators, sentiment, and sector pricing before finalizing sector selections.
The fund manager will adjust the sector weights and execute sector rotations when trend data indicates shifts in performance.
According to Kartik L Jain, MD & CEO of Shriram AMC, the fund addresses a common challenge faced by investors who often miss the optimal time to exit sectors when trends reverse.
“Shriram Multi-Sector Rotation Fund aims to help investors avoid ‘sector traps’ and benefit from timely rotation across trending sectors,” Jain stated.
He added that this strategy is also tax-efficient, as capital gains tax is not triggered on transactions managed within the fund.
Deepak Ramaraju, Senior Fund Manager at Shriram AMC, noted that the two-stage investment process—starting with sector selection and then stock selection—ensures the fund remains aligned with its objective.
“Our sector rotation and stock-picking approach is designed to generate sustainable alpha over the long term,” he explained.
Investors can opt for Systematic Investment Plans (SIPs), top-ups, and Systematic Transfer Plans (STPs) starting with a minimum investment of ₹500. SIPs can be set up on a weekly, fortnightly, monthly, or quarterly basis.
Once investors accumulate a corpus, they can initiate a Systematic Withdrawal Plan (SWP) at similar intervals for regular income.
The fund also provides tax efficiency for investors, with capital gains taxed only when they withdraw from the fund. This contrasts with direct investments in sector-specific funds, where frequent rebalancing incurs capital gains tax with each transaction.
The Multi-Sector Rotation Fund’s structure helps investors capture sectoral trends without additional tax implications.
This open-ended equity scheme introduces a unique investment approach by focusing on rotating across trending sectors, allowing investors to capture sectoral growth while avoiding prolonged exposure to underperforming areas.
The fund’s performance will be benchmarked against the Nifty 500 Index.
The Shriram Multi-Sector Rotation Fund will actively manage an equity portfolio by identifying and investing in a minimum of three to six sectors showing positive trends.
The selection process is guided by Shriram AMC’s proprietary Enhanced Quantamental Investment (EQI) framework, which combines quantitative sector analysis with fundamental insights.
This framework examines key factors like macroeconomic indicators, sentiment, and sector pricing before finalizing sector selections.
The fund manager will adjust the sector weights and execute sector rotations when trend data indicates shifts in performance.
According to Kartik L Jain, MD & CEO of Shriram AMC, the fund addresses a common challenge faced by investors who often miss the optimal time to exit sectors when trends reverse.
“Shriram Multi-Sector Rotation Fund aims to help investors avoid ‘sector traps’ and benefit from timely rotation across trending sectors,” Jain stated.
He added that this strategy is also tax-efficient, as capital gains tax is not triggered on transactions managed within the fund.
Deepak Ramaraju, Senior Fund Manager at Shriram AMC, noted that the two-stage investment process—starting with sector selection and then stock selection—ensures the fund remains aligned with its objective.
“Our sector rotation and stock-picking approach is designed to generate sustainable alpha over the long term,” he explained.
Investors can opt for Systematic Investment Plans (SIPs), top-ups, and Systematic Transfer Plans (STPs) starting with a minimum investment of ₹500. SIPs can be set up on a weekly, fortnightly, monthly, or quarterly basis.
Once investors accumulate a corpus, they can initiate a Systematic Withdrawal Plan (SWP) at similar intervals for regular income.
The fund also provides tax efficiency for investors, with capital gains taxed only when they withdraw from the fund. This contrasts with direct investments in sector-specific funds, where frequent rebalancing incurs capital gains tax with each transaction.
The Multi-Sector Rotation Fund’s structure helps investors capture sectoral trends without additional tax implications.
First Published: Nov 12, 2024 9:48 AM IST
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