Upcoming NFO: Abakkus Mutual Fund Files Draft with SEBI for Large and Mid Cap Fund

Abakkus Mutual Fund has filed the draft Scheme Information Document (SID) for the Abakkus Large & Mid Cap Fund, an open-ended equity scheme that will invest predominantly in large-cap and mid-cap companies. 

According to the filing, the objective is to generate long-term capital appreciation through investments in equity and equity-related instruments. The document also notes that there is no guarantee that the investment objective will be achieved. 

Investment Allocation 

The proposed scheme will invest 70% to 100% of its assets in equity and equity-related securities. Within this, 35% to 65% of the portfolio will be allocated to large-cap stocks and another 35% to 65% to mid-cap stocks. 

Up to 30% of the assets may be invested in debt securities, money market instruments, gold and silver instruments, while investments in Infrastructure Investment Trusts (InviTs) may account for up to 10% of the portfolio. 

Benchmark and Investment Details 

The fund will track the NIFTY Large Midcap 250 Total Return Index (TRI) as its benchmark. 

The index consists of 100 large-cap and 150 mid-cap companies listed on the National Stock Exchange. The scheme will be offered under Regular and Direct plans with only a Growth option. 

The New Fund Offer (NFO) price has been proposed at ₹10 per unit, while the minimum investment amount for both lump sum and SIP investments has been set at ₹500. 

Risk and Charges 

The draft document classifies the scheme under the Very High Risk category. An exit load of 1% will apply if units are redeemed within 6 months from the date of allotment, while no exit load will be charged after that period. 

The fund house has also stated that redemption proceeds will normally be dispatched within 3 business days from receipt of a valid request. 

Read More: Kotak Infinity Hybrid Long-Short Fund NFO Opens Under SIF Category! 

Conclusion 

The draft filing outlines the proposed structure, investment allocation, and operational features of the Abakkus Large & Mid Cap Fund. The dates for the New Fund Offer are yet to be announced. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.