NFO Alert: From key dates to risks, all you need to know about Old Bridge Focused Equity Fund

Old Bridge Mutual Fund announced the launch of the Old Bridge Focused Equity Fund. The scheme will open for public subscription on January 17, 2024, and will close on January 19, 2024.

Abeer Ray
First Published10 Jan 2024
Old Bridge Mutual Fund launches Old Bridge Focused Equity Fund as a part of its new fund offers.
Old Bridge Mutual Fund launches Old Bridge Focused Equity Fund as a part of its new fund offers.

Old Bridge Mutual Fund announced the launch of the Old Bridge Focused Equity Fund, an open-ended scheme, investing in a maximum of 30 stocks (Multi Cap).

The scheme will open for public subscription on January 17, 2024, and will close on January 19, 2024. The scheme would reopen within five business days of the allotment date.

What kind of a mutual fund scheme is this?

This is an open-ended scheme investing in a maximum of 30 stocks (Multi Cap). This open-ended equity scheme aims to provide investors with a unique opportunity to participate in the growth potential of carefully selected companies.

Commenting on the same, Kenneth Andrade, CIO, Old Bridge Asset Management, said, “We are excited to introduce our first equity fund to investors seeking long-term capital appreciation. The fund's strategy is aligned with our investment philosophy focusing on early-cycle businesses with strong leadership and growth potential.”

Andrade added, “The launch of the Old Bridge Focused Equity Fund aligns with the unprecedented growth in India's mutual funds industry as highlighted by recent data from the industry trade body AMFI. With over 20 million new investment accounts and a 19% increase in fund assets during the first 11 months of 2023, India surpasses global peers like the US, Japan, and China.”

What is the main objective of investing in this fund?

The investment objective of the scheme is to achieve long-term capital appreciation by strategically investing in a maximum of 30 stocks across different market capitalisations (i.e., mid-cap, small-cap, large-cap). This multi-cap approach is designed to identify businesses with the potential to compound capital over the long term, focusing on companies with enduring economic moats that have long-term franchise value and continued growth potential.

However, there is no assurance that the investment objective of the scheme will be achieved.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of 2500 per plan/option and in multiples of Re 1. There is no upper limit for investment. For lump-sum investments, the minimum amount is 5,000.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Instruments

Indicative allocations (percent of total assets)

Risk Profile

Minimum

Maximum

Equity & equity related instruments 

65%

100%

Very High

Debt and money market instruments

10%

35%

Low to Medium

Units of REITs & InvITs

0% 

10%

Very High

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such focused funds. These include:

Name of the fund

10-year returns (in  per cent )

Quant Focused Fund

21.22

Nippon India Focused Equity Fund

20.67

Franklin India Focused Equity Fund

20.00

SBI Focused Equity Fund

18.50

JM Focused Fund

17.92

HDFC Focused 30 Fund

17.78

Sundaram Focused Fund

16.81

ICICI Prudential Focused Equity Fund

16.70

Aditya Birla Sun Life Focused Fund

16.27

Source: AMFI (As of January 10, 2024)

How will the scheme benchmark its performance?

The scheme will be benchmarked against the S&P BSE 500 TRI. The S&P BSE 500 index is designed to be a broad representation of the Indian market. Consisting of the top 500 companies listed at BSE Ltd., the index covers all major industries in the Indian economy.

The composition of the aforesaid benchmark is such that, it is most suited for comparing the performance of the scheme.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” charged would be as under:

- If redeemed/switched out within 365 days from the date of allotment: 1%

- If redeemed/switched out after 365 days from the date of allotment – Nil 

The load structure will be equally applicable to all special products offered under the scheme such as SIP, STP, etc.

No exit load will be charged for switches made between different options of the scheme.

Who will manage this scheme?

The fund will be managed by seasoned investment professionals, Kenneth Andrade and Tarang Agrawal, leveraging their combined experience and expertise to navigate the dynamic market conditions.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

 

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