5 days ago
Utpal Sheth brings Rakesh Jhunjhunwala’s investment playbook to mutual funds
Utpal Sheth worked closely with the late investor Rakesh Jhunjhunwala for many years.
Sheth helped build a careful system for choosing companies that could grow a lot over a long time.
He now uses similar ideas through TRUST Mutual Fund.
The strategy looks for powerful businesses, big long-term trends, and valuable things such as technology or skilled people.
TRUST’s Flexi Cap and Small Cap funds have performed better than their stated benchmarks since they began.
However, the funds invest heavily in smaller and faster-growing companies.
Their portfolios also change frequently and are concentrated in a few sectors.
Because the funds are relatively new, their future risk and returns are not yet fully known.
The article says investors should consider their goals, time horizon, and ability to tolerate losses before investing.
Utpal Sheth, Rakesh Jhunjhunwala’s former senior partner at RARE Enterprises, helped establish the stock-picking process behind several multibagger investments.
Sheth’s Terminal Value and Gorilla Investing frameworks focus on long-term growth, dominant businesses, megatrends, and intangible assets.
TRUST MF Flexi Cap delivered a 10.9% annualized return since its April 2024 launch through 21 September 2026, ahead of its category and benchmark.
TRUST MF Small Cap delivered a 19.8% annualized return since its November 2024 launch through 21 September 2026, also exceeding its category and benchmark.
The funds have strong recent performance but concentrated, growth-oriented portfolios, high turnover, and limited track records that may indicate elevated risk.
- Who
- Utpal Sheth, who worked with the late Rakesh Jhunjhunwala, and the TRUST Mutual Fund team led with CIO and fund manager Mihir Vora.
- What
- Sheth is applying his Terminal Value, Gorilla Investing, and LimitedACTIV frameworks to mutual fund investing.
- Where
- The investment activity is centered in India’s capital markets through RARE Enterprises, TRUST Group, and TRUST Mutual Fund.
- When
- Sheth joined RARE Enterprises in 2003; TRUST Mutual Fund launched in 2019. The performance figures cited are through 21 September 2026.
- Why
- The aim is to identify long-term wealth-creation opportunities through dominant companies, structural trends, and intangible assets.
Case for the funds
Reasons for caution
Performance
Case for the funds
The Flexi Cap and Small Cap funds outperformed their stated category comparisons and benchmarks over the periods cited through 21 September 2026.
Reasons for caution
The funds have short histories of less than three years, so the available performance record is limited and may not establish long-term consistency.
Investment approach
Case for the funds
Sheth’s systematic frameworks emphasize long-term compounding, dominant businesses, megatrends, and disciplined portfolio construction rather than purely discretionary decisions.
Reasons for caution
The funds also use active stock selection, sector rotation, momentum strategies, and frequent trading, which can diverge from their long-term value-creation emphasis.
Risk and diversification
Case for the funds
The funds hold dozens of stocks and remained nearly fully invested, helping them participate in rallies in selected growth sectors during 2026.
Reasons for caution
Their concentration in sectors and smaller companies, high portfolio valuations, high turnover, and limited track records may expose investors to greater risk than peers and benchmarks.
Key facts
- Sheth’s role
- Senior Partner and CEO at RARE Enterprises for more than a decade, and later manager of its portfolio after Jhunjhunwala’s death.
- TRUST Mutual Fund launch
- Launched in 2019 to offer retail investors access to Sheth’s investment approach.
- Flexi Cap performance
- 10.9% compounded annualized return since its April 2024 launch, through 21 September 2026.
- Small Cap performance
- 19.8% compounded annualized return since its November 2024 launch, through 21 September 2026.
- Flexi Cap portfolio
- About 66 stocks, with approximately 49% in small- and mid-caps and 48% in large-caps as of August 2026.
- Small Cap portfolio
- About 71 stocks, with the top three sectors—consumer discretionary, industrials, and financial services—accounting for about 63% as of August 2026.
- Key risk indicators
- The funds have high reported portfolio turnover—276% for Flexi Cap and 202% for Small Cap—and growth-oriented valuations.
Quotes
Rakesh Jhunjhunwala
Indian investor and founder of RARE Enterprises, who worked with Utpal Sheth
“Utpal and I complement each other perfectly… we are a 1+1=11 partnership.”
financialexpress.com
Sources
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