Mumbai, May 31
TATA Mutual Fund launched its mid-cap fund with a target of collecting Rs 500-600 crore from 1.5 lakh investors during the initial issue period.
The fund seeks to invest in 30-40 scrips that fall within the market cap requirement of CNX Midcap 200 index. Currently, the index includes scrips with a market capitalisation range of Rs 60-3,600 crore.
The fund opened for its initial issue on May 19 and is expected to close on June 15.
Speaking at the launch, Mr Ved Prakash Chaturvedi, Managing Director, Tata Mutual Fund, said that the momentum of mid-cap companies is expected to continue for the next 3-4 years, during which time the Indian economy is also poised to continue its growth trajectory.
"The buoyancy and growth in mid-cap companies stand testimony to the structural change witnessed by the Indian industrial landscape. Our sense is that many of these companies present good opportunities from long-term growth and wealth creation on the back of a research based stock picking approach," he said.
However, he also cautioned that the risks involved in investing in mid-cap companies are higher than investments in large-cap companies.
The fund is has both the dividend and growth options with a minimum application amount of Rs 5,000.