Shriram Asset Management to launch new fund
The fund’s strategy is to leverage sector rotation to capture opportunities in outperforming sectors while reducing exposure to underperforming sectors.
Shriram AMC
CHENNAI: Shriram Asset Management Company Limited is set to launch the Shriram Multi Sector Rotation Fund.
This new fund aims to give capital appreciation over the medium to long-term in an actively managed equity portfolio which rotates across identifiable trending sectors that are performing well.
The fund’s strategy is to leverage sector rotation to capture opportunities in outperforming sectors while reducing exposure to underperforming sectors.
The focus of the fund will be to invest in minimum 3 to 6 trending sectors, based on the relative momentum of the sectors, and exit them when indications suggest a weakening trend.
The sectors will be selected based on Shriram AMC’s proprietary Enhanced Quantamental Investment (EQI) framework.
Kartik L Jain, MD-CEO, Shriram Asset Management Company, said, “Feedback from advisors indicates that investors often get caught in ‘sector traps’ when they invest in
upcoming sectors that are trending due to macro-economic cycles or policy shifts. While their portfolio benefits from the uptrend, they usually remain invested even when the trend reverses or plateaus, due to inertia or behavioural biases.”