Shriram AMC launches India’s first multi sector rotation fund for trend-savvy investors

Shriram Multi Sector Rotation Fund aims to help investors ride sector trends, avoid sector traps and benefit from tax efficiency.

Shriram Asset Management Company Limited, a part of the Shriram Group, is set to launch India’s first multi-sector rotation fund, the Shriram Multi Sector Rotation Fund. This open-ended equity scheme, designed with an innovative sector-rotation strategy, aims to maximize capital appreciation by selectively investing in trending sectors based on a proprietary model.

The fund’s New Fund Offer (NFO) opens on November 18, 2024, and closes on December 2, 2024. By dynamically adjusting sector allocations, this fund seeks to avoid stagnant or declining sectors, offering an efficient way to align with economic cycles.

Key Highlights of Shriram Multi Sector Rotation Fund

• Fund Strategy: Focuses on trending sectors, rotating investments based on sector momentum.
• Sector Selection Method: Uses Shriram AMC’s Enhanced Quantamental Investment (EQI) framework.
• Benchmark: The Nifty 500 Index.
• Investment Options: Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), and Systematic Withdrawal Plan (SWP) starting at Rs 500.
• Tax Benefits: Tax efficiency through managed sector rotations, reducing the need for individual sector exits.

Investment Growth Potential
Shriram Multi Sector Rotation Fund is built to cater to investors looking for medium- to long-term growth by actively managing exposure to high-performing sectors. This sector-rotation approach allows investors to gain from emerging sector trends without being locked into underperforming areas.

By applying Shriram’s proprietary Enhanced Quantamental Investment (EQI) framework, the fund combines quantitative and fundamental analysis, monitoring factors like macroeconomic indicators, sentiment, and price performance to determine optimal sector allocations.

Management Comments
Kartik L Jain, MD & CEO of Shriram Asset Management Company, shared insights on the fund’s launch, stating, “Feedback from advisors indicates that investors often get caught in ‘sector traps’ due to inertia or behavioural biases, remaining invested even when trends reverse.”

He highlighted that the Shriram Multi Sector Rotation Fund aims to help investors avoid such pitfalls by systematically rotating across sectors in line with current market trends. Jain also noted that the fund’s structure allows investors to benefit from sector shifts without incurring individual capital gains taxes, making it a tax-efficient choice for those interested in sector-based investments.

Should You Invest?
The Shriram Multi Sector Rotation Fund offers a unique approach for investors looking to actively capitalize on sector trends. With the added benefit of tax efficiency and Shriram AMC’s systematic approach to sector selection, this fund can appeal to those aiming for medium- to long-term growth through diversified sector exposure. However, as with any investment, potential investors should evaluate their risk tolerance, investment horizon, and financial goals before committing.

Disclaimer: The article is for informational purposes only and not investment advice.