SMFD invests in innovative companies making and using new age materials such as composites, replacing traditional ones such as metals, and forestry goods. Technical advances are making it possible to make items from baby diapers to aircraft engine parts with innovative materials. Human aspiration for being more profitable, stronger, lighter, faster, and environment-friendly is driving this product advances. SMFD is new to India vs. China 4.5x larger vs. USA 11x larger, and expected to grow manifold in India
Three-year investment horizon, multi-cap, high growth, diversified fund. Portfolio: Invests majority in SMFD, and the balance in other sectors. The fund aims for high absolute returns vs. the index and carries a high risk of investing including capital loss.
The product aims to invest across market capitalization as the SMFD sectors offers a huge opportunity for investment across various sectors in major key categories with an estimated market size of USD318 bn.
SMFD sectors are expected to grow 2-3x the GDP. A cyclical recovery, higher demand vs. supply, and firm chemical and polymer prices will lead to earnings upgrades.