Key Points
- Shriram AMC introduces the Multi Sector Rotation Fund with a data-driven approach.
- The fund focuses on sectors with strong momentum and avoids underperforming ones.
- The NFO is open until December 2.
- The fund aims to reduce issues like transaction costs and capital gains taxes for investors.
- The fund is likely to target sectors like Healthcare, Consumer Services, IT, and FMCG.
- This fund is ideal for high-risk investors looking to capitalize on sector momentum.
- The expected expense ratio is 2.25%.
Looma News
Shriram AMC has launched the Shriram Multi Sector Rotation Fund, an NFO that blends data analysis and market research to invest in sectors that are trending. By focusing on sectors with strong performance, the fund aims to avoid those that are underperforming, offering investors a chance to enter and exit sectors strategically for better returns. The NFO will remain open until December 2, and the fund is expected to focus on sectors like Healthcare, Consumer Services, IT, and FMCG.
The fund uses a combination of data models and market fundamentals to choose sectors from the NSE-500. After selecting the sectors, it picks top-performing stocks to potentially achieve better-than-average returns. According to the fund’s backtested model, it has delivered an average return of 13.9% above Nifty-500 over the past five years. However, due to the fund’s high turnover and potential risk of poorly timed exits, there are risks to consider.
This fund is suited for high-risk investors who want to take advantage of sector momentum. It offers a tax-efficient option compared to holding multiple sector-specific funds. The expense ratio is expected to be 2.25%, and while the fund doesn’t yet have a long history, its model may offer significant returns for those willing to accept higher risk.
