Unifi Mutual Fund files a draft document with SEBI for its Flexi Cap Fund

Unifi Mutual Fund has unveiled its newest offering – the Unifi Flexi Cap Fund, an open-ended equity scheme designed to invest across the entire market capitalisation spectrum. From large and mid-sized firms to emerging small-cap companies, this fund aims to generate long-term capital appreciation through a bottom-up stock-picking strategy. Here’s everything you need to know about this new fund offering.

Fund Objective

The primary goal of the Unifi Flexi Cap Fund is to generate long-term capital appreciation by actively investing in a diversified basket of equity and equity-related instruments across sectors and market capitalisation categories. The fund is positioned for investors with a long-term horizon who are comfortable with higher levels of risk in pursuit of potentially greater returns. While the scheme endeavours to meet its objective, it does not guarantee returns.

Category and Benchmark

This fund falls under the Flexi Cap category as defined by SEBI, meaning it has the flexibility to invest across large-cap, mid-cap, and small-cap stocks without any pre-defined allocation limits.

• Benchmark Index: Nifty 500 TRI
  This index has been selected as it is reflective of the scheme’s investment universe and offers a comprehensive market performance comparison.

Asset Allocation

The fund has the flexibility to dynamically allocate assets as follows:

• Equity and equity-related instruments: 65% – 100%
• Debt and money market instruments: 0% – 35%
• REITs & InvITs: Up to 10%

Investment Strategy

The scheme follows an active investment strategy anchored in bottom-up stock selection, guided by:

• Structural growth themes
• Corporate events like M&A, spin-offs, and buybacks
• Valuation-driven entry points
• High standards of corporate governance and capital allocation

The portfolio will be “consensus agnostic,” focusing on businesses that demonstrate scalable growth potential, sector tailwinds, and valuation comfort.

Investment Universe

The fund will invest in:

• Indian equities (across market caps)
• Debt and money market instruments
• Units of REITs, InvITs, and other mutual fund schemes
• Overseas securities, including global ETFs, ADRs, and equities
• Derivatives for hedging and optimisation

The fund also allows investments in units of other Unifi Mutual Fund schemes (up to 5% of NAV), and may engage in stock lending and investments in securities with structured obligations.

Fund Managers

The scheme is managed by a seasoned team:

• Saravanan V N – Chief Investment Officer with 24+ years’ experience
• Aejas Lakhani – Equity Fund Manager with 13 years’ experience in fund management and research
• Karthik Srinivas – Debt Fund Manager with 10 years of financial services experience
• Aman Reddy Kakani – Overseas portfolio manager and CFA charterholder

Plans and Options

The fund offers:

• Direct Plan
• Regular Plan

Both plans are available under the Growth Option. In the absence of distributor ARN, applications default to the Direct Plan.

Entry & Exit Load

• Entry Load: Nil
• Exit Load:
  • 1% if redeemed within 12 months from allotment
  • Nil after 12 months

Minimum Investment

• Lump sum: ₹5,000 and in multiples of ₹1 thereafter
• SIP: ₹500 and in multiples of ₹1
• Additional Purchase: ₹500
• Redemption: ₹1 or 1 unit or account balance, whichever is lower

Conclusion

The Unifi Flexi Cap Fund seeks to offer a versatile investment avenue for those aiming for long-term wealth creation through active equity participation across market caps and sectors. While the fund is exposed to high levels of market risk, its strategy of selective stock picking and dynamic allocation could be appealing to informed investors seeking a diversified equity approach.

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 in the securities market are subject to market risks, read all the related documents carefully before investing.