Business Daily from THE HINDU group of publications
Wednesday, Jul 26, 2006
Business Daily from THE HINDU group of publications Wednesday, Jul 26, 2006 |
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Markets
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New Fund Offer Our Bureau
Kolkata , July 25 DSP Merrill Lynch MF has mooted an equity fund that will invest chiefly in small- and mid-cap stocks. The proposed DSP ML Small and Mid-Cap Fund will try to generate capital growth from a portfolio substantially formed with equity and equity-related securities that are not part of top-100 stocks in terms of market capitalisation. At least 65 per cent of the assets will be invested in equity and equity-related securities that are not in the top-100 bracket. This can be scaled up to 100 per cent. Up to 10 per cent may be invested in debt and money market instruments. Under normal market conditions, roughly 90 per cent of the portfolio will be invested in equity and equity related securities.
CNX Midcap - Benchmark
The fund, to be benchmarked against the CNX Midcap index, will be managed by Mr S.N. Lahiri, the offer document filed with SEBI has mentioned. From time to time, it will also seek participation in other equity and equity-related securities to achieve optimal portfolio construction, it is added. The long-term growth potential of a company may not be fully reflected in the market price of its securities, it is pointed out. A stock may enjoy super-normal growth due to a new product, a new process, growing market share, stronger brand equity, technological breakthrough and unique position in a market, among other factors. In this context, the fund will try to select stocks that could become potential leaders in their respective fields.
More Stories on : New Fund Offer | Mutual Funds
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