Investment Objective
Mahindra Manulife Small Cap Fund seeks to generate long term capital appreciation by investing in a diversified basket of equity & equity related securities of small cap companies.
Investment Strategy
- The fund invests at least 65% of its assets in equity and equity related securities of small cap companies.
- It may also invest up to 35% of its net assets in other equity and equity-related securities across large and/or mid-cap segments as part of portfolio construction.
- The key stock selection criteria include:
- Growth outlook for the business,
- Quality of balance sheet and cash flows strengths,
- Stability of the business model across economic cycles,
- Business moat through brand power, technological edge, or competitive advantage,
- Proven management track record and
- Reasonable valuations relative to growth potential.
- It may also invest a portion of its portfolio in debt and money market securities. The investment factors include credit quality, liquidity, interest rates and their overall outlook.
- The scheme follows an active management style.
Who Should Invest
- Investors looking for long term capital growth by investing in small cap companies.
- Those having a higher risk appetite as small cap funds experience higher volatility than large cap and mid cap funds.