Mahindra AMC launches mid cap fund

Mahindra Asset Management Company on Monday announced the launch of Mahindra Unnati Emerging Business Yojana, mid cap fund, an open-ended equity scheme.

The New Fund Offer (NFO), which opened on January 8, 2018, will close on January 22. The scheme will reopen for continuous sale and repurchase from February 6, 2018.

Ashutosh Bishnoi, MD and CEO of Mahindra AMC said that the company's new fund will invest in mid cap stocks.

While most large cap funds focus their investments towards infrastructure based companies, mid cap funds focus on consumption space. Bishnoi said that the consumer industry, including ecommerce, pharma, travel and health industries would be experiencing a boom this year thus ensuring a higher return potential, if market trends are to be believed.

 "The market cap closely follows the size of the economy. India's GDP is $2.5 trillion and the market cap is $2.45 trillion. We are still below the growth of GDP. The market trends look very positive for the equity markets and the market is growing rapidly," Bishnoi said.

The scheme would invest minimum 65% in mid cap companies and up to 35% in stocks other than mid cap.

Mahindra Asset Management Company, the investment manager for Mahindra Mutual Fund, offers five funds, including this newly launched fund.

In the business for more than a year now, the company has asset under management (AUM) of about Rs 3,000 crore.