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Shriram Mutual Fund will launch Shriram Multi Sector Rotation Fund.
The fund will invest in an equity portfolio which rotates across identifiable trending sectors that are performing well. The fund's strategy is to leverage sector rotation to capture opportunities in outperforming sectors while reducing exposure to underperforming sectors.
The focus of the fund will be to invest in minimum 3 to 6 trending sectors, based on the relative momentum of the sectors and exiting them when indications suggest a weakening trend.
Kartik L Jain, MD & CEO, Shriram MF said, “Feedback from advisors indicates that investors often get caught in ‘sector traps’ when they invest in upcoming sectors that are trending due to macro-economic cycles or policy shifts. While their portfolio benefits from the uptrend, they usually remain invested even when the trend reverses or plateaus, due to inertia or behavioural biases. As a result of this, they may end up with lower or even negative annualised returns vs. if they had rotated their sector allocation on time. Shriram Multi Sector Rotation Fund aims to address this investor pain point to help them avoid sector traps and instead, ride sector trends by rotating across sectors in a timely manner. Our catch line ‘Jaisa sector trend, waisa aapka portfolio’ captures this essence. This is also tax efficient for the investor as there is no capital gains tax implication when the fund manager rebalances across sectors within the scheme.”
Deepak Ramaraju, Sr Fund Manager, Shriram MF said, “Our two-tier approach of first doing a sector selection based on relative trends, and then doing stock selection, ensures that the fund remains true to label. Sector rotation and stock selection based on our proprietary Enhanced Quantamental Investment framework is also aimed at delivering sustainable alpha to our investors over time.”
