TRUST Mutual Fund has launched the TRUSTMF Large & Mid Cap Fund to capitalize on what CEO Sandeep Bagla describes as a structural shift in market valuations. The fund will open for subscription on July 3 and close on July 17, with a minimum investment amount of ₹1,000. According to reports from The Economic Times, the fund mandate requires minimum 35% allocation each to large-cap and mid-cap companies, with residual portion allocated to small-caps. The fund is positioned to offer investors steady growth combined with upside potential, targeting sectors that have shown exceptional earnings in recent periods.
Bagla identifies corrected large-cap valuations in banking and IT sectors as prime entry points for 2026. As reported by The Economic Times, the fund manager notes that valuations in large-cap space have come down quite a bit due to commodity inflation and growth moderation factors. The improved earnings outlook and subduing investor concerns create favorable conditions for medium-term investors, with the fund targeting companies that benefit from structural megatrends in the Indian economy. The fund's launch timing aligns with current market conditions where large-cap valuations present attractive entry opportunities.
TRUST MF's investment approach emphasizes 'Megatrends' and business model longevity for portfolio construction. According to the interview with The Economic Times, the fund is underweight on large IT companies and banks due to their low growth profiles, while maintaining constructive positions on capital market players and mid-sized IT companies. The fund managers expect around 15% allocation to small-caps, citing historical performance where 3 stocks moved from small-caps to large-caps generating 108% CAGR between 2020-2025. The fund's launch coincides with a broader market trend where fund houses are expanding their product portfolios to meet diverse investor needs.
Bagla highlights five key growth themes for the next 5-year period: financialization of savings, premium consumption, infrastructure creation, defense, and technological innovation. As reported by The Economic Times, the fund manager expects the Indian economy to benefit from adding 20% of the global working age population in coming years, driving increased consumption and investment. The fund's strategy focuses on companies with long-term growth potential in sectors experiencing structural changes in investor preferences and consumption patterns. This launch is part of a broader industry trend where fund houses are launching new schemes to complete their product portfolios and cater to different investor segments.
