The Wealth Company Mutual Fund

Its equity-oriented range includes schemes such as The Wealth Company Flexi Cap Fund, Ethical Fund, Small Cap Fund, Large & Mid Cap Fund, Mid Cap Fund and Multi Cap Fund.

These schemes are not interchangeable. A flexi cap fund, for example, can invest across large, mid and small cap companies, while a small cap fund has a much more specific market-cap mandate. The Ethical Fund adds another distinction because its investment universe is shaped by its stated ethical theme.

The AMC’s hybrid offerings include The Wealth Company Arbitrage Fund, Balanced Advantage Fund, and Multi Asset Allocation Fund. Their strategies differ considerably. An arbitrage scheme seeks opportunities arising from price differences in markets, while balanced advantage and multi-asset allocation strategies use different approaches to allocating money across asset classes.

On the debt side, The Wealth Company Liquid Fund invests in debt and money-market securities with maturities of up to 91 days, consistent with the investment framework applicable to liquid funds.

The AMC has also introduced The Wealth Company Gold ETF and The Wealth Company Gold ETF Fund of Fund. These provide different routes to gold-related exposure rather than functioning like conventional equity or debt schemes.

Before comparing returns, decide what role the investment should play in your portfolio. Someone seeking long-term equity exposure, short-term liquidity, and gold exposure would be looking at three very different investment requirements.

Pantomath Capital Advisors Private Limited is the sponsor, Wealth Company Asset Management Holdings Private Limited manages the schemes, and Pantomath Trustee Private Limited provides oversight. KFin Technologies Limited handles registrar and transfer-agent services.

Each scheme carries risks linked to its investments. Equity funds can lose value when share prices fall. Debt funds face interest-rate and credit risks, while gold-oriented schemes respond to gold price movements. Hybrid funds may face risks from several asset classes.

There is no single risk level that applies to every The Wealth Company mutual fund scheme. Check the latest Riskometer, portfolio and scheme documents before investing.

3-year returns vs category comparison

A 3-year scheme-versus-category comparison is not yet possible because these schemes have not existed for three years. Using a shorter return period and annualising it would not be the same as showing an actual 3-year performance history.

5-year returns vs category comparison

Five-year scheme returns are likewise unavailable. The category-average figures have been left unreported because the original research did not establish comparable, consistently dated figures. Older funds in these categories may have valid historical averages.

This doesn’t mean the schemes cannot be evaluated. You can examine their portfolios, investment strategies, benchmarks, fund managers, expense ratios and Riskometers. Shorter-period or since-inception returns may also help, although they cannot show how a strategy performs across several market cycles.

You must note that past performance may or may not continue in the future. Therefore, use it as one part of your research rather than a guarantee of future returns.

• Financial goals: Decide whether you’re investing for long-term wealth creation, a future expense, or greater portfolio diversification. Your objective will help narrow down the categories.
• Time horizon: Consider when you’ll need the money. Equity funds generally require a longer investment horizon, while liquid funds serve different, shorter-term needs.
• Risk level: Check each scheme’s Riskometer. Funds from the same AMC can have very different risk profiles depending on their holdings and strategies.
• Category: Choose the type of fund before comparing individual schemes. For instance, someone seeking diversified equity exposure has different requirements from an investor considering debt or gold.

Once you’ve selected a category, examine the scheme’s portfolio, benchmark, fund managers, expense ratio, and exit load, where applicable.

Also check whether its holdings overlap with funds you already own. Adding another scheme may not improve diversification if it invests in many of the same companies.

Because The Wealth Company is a young AMC, investment strategy, portfolio construction, costs and suitability deserve particular attention until longer performance records become available.