Helios Large & Mid Cap Fund – Direct (G): NFO Details

Helios Large & Mid Cap Fund, An open-ended equity strategy that invests in big and mid-cap equities has been introduced by Helios Mutual Fund. Subscriptions for the new fund offer (NFO) will be accepted starting on October 10 and ending on October 24. On November 4, the program will reopen for ongoing sales and purchases. Generating long-term capital appreciation from a portfolio mostly comprised of equities and equity-related instruments of large-cap and mid-cap corporations is the investing goal.

Details of the NFO: Helios Large & Mid Cap Fund – Direct (G)

Investment Objective and Strategy

Objectives:

The investment objective of the Helios Large & Mid Cap Fund – Direct (G) is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of large cap and mid cap companies. However, there can be no assurance that the investment objective of the Scheme will be realized.

Investment Strategy:

In positive parlance, the companies, funds would like to invest in should therefore have the following:

1. Size of opportunity: Emphasize investment opportunities with significant market potential, focusing on industries or sectors poised for growth and expansion.

2. Favorable industry dynamics: Identify industries with positive trends and dynamics that can drive the growth of companies operating within them. Factors such as increasing demand, technological advancements, regulatory support, and evolving consumer preferences will be considered.

3. Low potential for disruption: Evaluate the resilience of business models and industries against disruptive forces.

4. Strong management/background/strategy: Assess the quality and experience of the management team, seeking leaders with a proven track record of success, relevant expertise, and a well-defined strategy to guide future growth.

5. Good corporate governance: Prioritize companies with robust corporate governance practices, including transparent decision-making processes, independent board members, and a commitment to ethical business practices.

6. Clean accounting: Review financial statements to ensure compliance with relevant accounting standards. Companies questionable accounting practices will be avoided.

7. Medium-term positive triggers: Identify potential catalysts or events that could positively impact a company’s performance over the medium term. Factors such as upcoming product launches, market expansions, cost-saving initiatives, and anticipated industry developments, change in management, favorable government policy, etc.

8. Reasonable valuations: Evaluate the company’s valuation relative to peers and the overall market. Companies trading at reasonable prices in relation to their growth prospects, earnings potential, and industry benchmarks.

By employing this investment strategy, the focus will be on eliminating “bad” investment opportunities that fail to meet the above criteria. Once the options have been narrowed down investments will be selected based on meeting all the criteria or exhibiting strengths in multiple areas. It is important to note that thorough research and regular review will remain a crucial part of the investment strategy.

The Fund will endeavor to build an all-weather long portfolio, utilizing a bar-bell construct that comprises of two types of companies:

A) Good” Stocks: stocks that offer “High Confidence in reasonable returns”

B) Emerging” good stocks: stocks that offer “Reasonable Confidence In high returns”

In addition to equity and equity-related securities, the scheme may also invest in other types of equity instruments (including futures and covered calls) that align with the investment objectives and strategies outlined above.
In addition to aforesaid investment strategy, the Scheme shall follow a style-agnostic approach adaptable to various market environments with an aim to ensuring consistency of returns. Also, diversification and rigorous company screening shall be used for risk mitigation. 

The Scheme may invest in equities through the primary market such as IPOs, securities received through corporate actions, private placements, etc. The Scheme may engage in Stock Lending activities. The Scheme may invest in equity derivatives such as Stock/Index Futures & Options, covered call and such other derivative instruments as may be introduced and permitted by SEBI from time to time, subject to approval from SEBI, as required. The Scheme may use equity derivatives for the purpose of hedging, portfolio balancing, accessing arbitrage opportunities and other purposes as may be permitted under the SEBI (Mutual Funds) Regulations, 1996.

Why Invest in Helios Large & Mid Cap Fund – Direct (G)?

Alok Bahl and Pratik Singh will oversee the program, which will be benchmarked against the NIFTY Large Midcap 250 Total Return Index. ₹5,000 is the minimum investment amount, and further investments are made in multiples of ₹1.

The plan will distribute 35–65% of its total assets to large- and mid-cap companies' equity and equity-related instruments, 0–30% to companies' other equity and equity-related instruments, 0–30% to companies' other equity and equity-related instruments, and 0–30% to debt securities and money market instruments.

Who Should invest in this Fund?

If you are the kind of investor who is seeking long-term wealth creation through a diversified portfolio of large and mid-cap companies, then it is the best suitable for you. 

The principal invested in the scheme is classified as having "very high" risk according to the scheme's risk-o-meter, is a very important aspect to keep in mind.