Mahindra Manulife Mutual Fund Files Draft for Mahindra Manulife Innovation Fund

This fund seeks to take advantage of the growth prospects within India’s manufacturing sector, which is anticipated to thrive due to multiple government initiatives like “Make in India” and a rise in domestic demand. The fund will focus its investments on companies operating in different manufacturing sub-sectors, such as automobiles, engineering, chemicals, textiles, and others.

More details on the Mahindra Manulife Manufacturing Fund

As of September 30, 2024, the fund’s assets under management (AUM) reached Rs. 946 crores, with a net asset value (NAV) of Rs. 9.78 for the direct plan-growth option as of October 31, 2024. The expense ratio is 0.62% for the Direct Plan and 2.22% for the Regular Plan. An exit load of 0.5% applies if units are redeemed within three months, and there is no exit load thereafter. Regarding taxation, short-term capital gains (for holdings less than one year) are taxed at 15%, whereas long-term capital gains (for holdings over one year) are taxed at 10% on any gains exceeding Rs. 1 lakh within a financial year.

Objective of the fund

The fund seeks to achieve long-term capital growth primarily by investing in stocks and equity-associated securities of companies involved in manufacturing and similar industries.

Fund Managers 

The fund is jointly managed by Manish Lodha, Renjith Sivaram Radhakrishnan, and Pranav Patel, each of whom offers valuable skills in equity research, portfolio management, and international investments.

Holdings 

Several leading companies in the fund’s portfolio are ITC Ltd., Mahindra & Mahindra Ltd., Maruti Suzuki, Reliance Industries, and Hindustan Unilever Ltd. This indicates a diversified approach that spans both large-cap and mid-cap firms.

Portfolio Allocation 

The fund’s portfolio is spread across various sectors, featuring a notable 21.45% allocation to the Automobile and Auto Components sector, followed closely by 19.99% for Capital Goods. The Fast-Moving Consumer Goods (FMCG) sector makes up 10.8% of the portfolio, while Healthcare and Metals & Mining comprise 5.99% and 6.31%, respectively. This well-rounded allocation demonstrates a thoughtful strategy for sector diversification.

Conclusion

This fund is ideal for investors who are willing to take on high risks and want to benefit from India’s manufacturing growth narrative. Its targeted approach corresponds with government initiatives such as “Make in India” and the Production-Linked Incentive (PLI) programs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.