Abakkus Mutual Fund Launches Two New Funds: Flexi Cap and Liquid Schemes to Tap Market Growth!

Abakkus Mutual Fund has officially announced the launch of two new investment schemes, marking a significant expansion of its product offerings for Indian investors. The new funds include the Abakkus Flexi Cap Fund, its maiden equity offering, and the Abakkus Liquid Fund.

Introducing New Investment Avenues

The Abakkus Flexi Cap Fund is an open-ended equity scheme designed to provide investors with diversified exposure across the market capitalization spectrum, including large-cap, mid-cap, and small-cap companies. This fund aims to capture growth opportunities across different segments of the Indian equity market.

Abakkus Flexi Cap Fund Deep Dive

The New Fund Offer (NFO) for the Abakkus Flexi Cap Fund will be open from December 8 to December 22. The fund house plans to invest a minimum of 65% of its portfolio in equities and equity-related instruments. The remaining allocation can be distributed among debt and money market instruments (up to 35%) and Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) (up to 10%). The scheme will be benchmarked against the BSE 500 Total Return Index. Abakkus AMC will employ its proprietary investment framework, 'MEETS,' which stands for Management track record, Earnings quality, Business trends, Valuation discipline, and Structural factors. This framework guides the multi-stage stock selection process.

Market Outlook and Rationale

The launch of these new funds is supported by the asset manager's positive outlook on the Indian economy. Abakkus Mutual Fund highlights broader expectations of stable economic conditions, driven by robust domestic demand, high savings rates, a large and growing middle class, and supportive government policy reforms. Stable macro indicators and anticipated earnings expansion further bolster this optimistic view.

Abakkus Liquid Fund NFO

Alongside the Flexi Cap Fund, Abakkus Mutual Fund is also introducing the Abakkus Liquid Fund. Its NFO period is scheduled to commence on December 8 and conclude on December 10, offering investors a short-term liquidity option.

Impact

• The launch of new mutual funds by Abakkus Mutual Fund provides investors with additional choices for diversifying their portfolios and potentially participating in market growth.
• These new fund offerings could attract significant inflows into the Indian mutual fund industry, particularly into the equity and liquid fund segments.
• The emphasis on a robust investment framework ('MEETS') and a positive market outlook suggests a strategic approach to wealth creation for investors.
• Impact Rating: 7/10

Difficult Terms Explained

• Open-ended fund: A mutual fund that issues and redeems units on a continuous basis and does not have a fixed maturity period.
• Flexi Cap Fund: A type of equity mutual fund that can invest in companies of any market capitalization (large, mid, or small).
• NFO (New Fund Offer): The initial period during which a mutual fund house offers units of a newly launched scheme for subscription.
• REITs (Real Estate Investment Trusts): Companies that own, operate, or finance income-generating real estate.
• InvITs (Infrastructure Investment Trusts): Trusts that own and manage income-generating infrastructure assets.
• Benchmark Index: An index against which the performance of a mutual fund scheme is measured.
• MEETS: Abakkus Mutual Fund's proprietary investment framework assessing companies on Management, Earnings, Business trends, Valuation, and Structural factors.
• Equity: Represents ownership in a company, typically in the form of stocks.
• Debt Instruments: Financial instruments that represent money borrowed and must be repaid, such as bonds or loans.
• Money Market Instruments: Short-term debt instruments like Treasury Bills or Commercial Papers, known for their liquidity and low risk.