Abakkus Asset Manager has introduced its third equity scheme, the Large & Mid Cap Fund, targeting a portfolio mix of at least 35% each in large and mid-sized companies. The fund house, now managing over ₹7,700 crore, aims to capture long-term domestic growth despite recent global market volatility. Investors can expect a research-focused approach centered on sectors like financial services and consumer discretionary.
Abakkus Asset Manager has officially launched its new Large & Mid Cap Fund, marking a strategic expansion of its product lineup. The new scheme, managed by Pratish Krishnan, follows a mandate to invest a minimum of 35% of its assets in large-cap stocks and at least 35% in mid-cap stocks. This structure is designed to provide investors with a balance between the stability offered by established companies and the growth potential often found in mid-sized firms.
Business Growth and Future Strategy
With this launch, Abakkus continues to scale its operations. The fund house recently reported that its total Assets Under Management have crossed the ₹7,700 crore mark, catering to a base of more than 1.4 lakh investors. Looking ahead, CEO Vaibhav Chugh has outlined plans to broaden the company's offerings by entering the hybrid fund category. The firm is also preparing to apply for a Specialised Investment Fund license, which would further diversify its investment capabilities.
Management View on Market Conditions
Sunil Singhania, the founder of Abakkus, maintains a positive long-term view on the Indian economy, forecasting a path toward an $8-trillion valuation. He acknowledges that Indian equities have faced a period of performance pressure over the last 18 months, which he links to factors such as stretched valuations following the pandemic-era rally, geopolitical tensions, and global shifts in capital toward technology-heavy markets. Despite these challenges, he expects foreign investor interest to improve as global macroeconomic conditions stabilize.
Investment Approach and Sector Focus
For the newly launched fund, the investment team intends to employ a bottom-up research strategy. This means the fund managers focus on individual company fundamentals rather than broad market trends. The team is currently favoring sectors including financial services, consumer discretionary, and businesses linked to investment spending.
Investors should note that Singhania has cautioned against expecting the high returns seen during the 2020-2024 period. He emphasizes that the current market environment requires careful stock selection rather than relying on broad market upswings. As the fund begins operations, the key monitorable for participants will be the consistency of the investment strategy and the fund’s performance relative to its benchmark indices in the coming quarters. The success of the fund will ultimately depend on the team's ability to navigate potential market volatility while managing the inherent risks associated with mid-cap stock selection, such as higher price fluctuations and liquidity concerns during market corrections.