The Hindu Business Line : Chola MF launching multi-cap fund

CHOLA Mutual Fund is launching a multi-cap fund. This open-ended equity fund, seeks to provide long-term capital appreciation by investing in a well-diversified portfolio of equity & equity related instruments across all ranges of market capitalisation, according to the draft offer document filed.

The document, filed with the Securities and Exchange Board of India, says that the fund would invest 80-100 per cent in equity and equity related instruments. Up to 20 per cent of the corpus of the fund can be invested in cash and money market instruments.

The fund can invest 25-75 per cent of its corpus in large and mid-cap stocks and up to 15 per cent in small-cap stocks.

The fund would charge an entry load of 2 per cent on investments less than Rs 25 lakh. Also, exit load of 2 per cent is charged on redemption within one year of investment.

The issue is priced at Rs 10 per unit during the initial public offer and the minimum application amount is Rs 5,000.