Stocks

Mahindra MF launches mid-cap fund with consumption theme

K R SRIVATS New Delhi | Updated on January 08, 2018

NFO opens for subscription on Jan 8

Betting big on the return of India’s consumption story in 2018, Mahindra Mutual Fund has come up with a mid-cap fund — an open ended equity scheme predominantly investing in mid-cap companies.

“We see the year 2018 as the big year of catch-up. For one whole year (2017), the entire economy had postponed consumption due to demonetisation, GST, etc. This year it will change and consumption will only go up,” Ashutosh Bishnoi, MD & CEO, Mahindra AMC, told BusinessLine here.

This mid-cap fund — Mahindra Unnati Emerging Business Yojana — will have a portfolio of 30-40 companies and have “consumption” as the general theme. The scheme would invest minimum 65 per cent in mid-cap companies and up to 35 per cent in stocks other than mid-caps.

“In deciding the stocks, we will look at niche business in a large industry — which commands a premium or large company in a small industry. It will be a mix of both,” he said. The new fund offer will be open for initial subscription from January 8-22.

Bishnoi felt that consumption will go up in the economy given that 2018 will see as many as eight Assembly elections, including some large ones such as Karnataka, Madhya Pradesh and Rajasthan.

Asked about the growth aspiration of the fund house, Bishnoi said Mahindra MF wants to emerge as the largest investment house for semi-urban and rural households in the next 10 years.

Mahindra MF has about ₹3,000 crore assets under management.

Published on January 04, 2018

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