NFO Review: Essel Multicap Fund opens on June 18Essel Mutual Fund has announced plans to launch the ‘Essel Multicap Fund’. The New Fund Offer (NFO) period will run from 18th June to 2nd July 2018. The fund will invest in large, mid and small-cap companies. The fund is an open-ended one and hence you can also buy it after the NFO period when the fund is launched. Viral Berawala who is the Chief Investment Officer (CIO) of Essel Mutual Fund shall manage this fund.

Essel Mutual Fund came into existence in 2016 when Essel Finance bought out Peerless Mutual Fund. Essel Finance is part of the larger Essel Group led by Subhash Chandra. Other major group brands include Zee Entertainment and Essel Propack

Essel Multicap Fund will invest 65-100% of its assets in equities, 0-35% in debt and 0-10% in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs). The fund will be benchmarked to the Nifty 500 TRI (Total Returns Index).

Essel Large Cap is one of Essel’s most prominent funds. It also has a reasonably long history. The fund has beaten its benchmark (Nifty 50) over the past three and five years. It has delivered 14.4% and 12.6% compared to the benchmark return of 13.75% and 10.77% respectively. However, it has lagged behind in the past year delivering 4.76% compared to 13.01% on the index. It is also managed by Viral Berawala, the fund manager of Essel Multicap Fund.

The minimum application amount for the fun will be Rs 1000.

Author
Neil Borate

Neil Borate is Deputy Editor, RupeeIQ. He can be contacted at neil@rupeeiq.com.