Markets

Union AMC launches midcap fund

Our Bureau Chennai | Updated on February 27, 2020 Published on February 27, 2020

Union AMC has launched the Union Midcap Fund, an open-ended equity scheme that predominantly invests in midcap stocks. The New Fund Offer (NFO) opens on March 2 and closes on March 16. The allotment will be on March 23 and will re-open for continuous sale and repurchase on March 30, according to a statement.

The minimum investment required is ₹5,000 and in multiples of ₹1 thereafter. The scheme will predominantly invest in equity and equity-related instruments of mid-cap companies.

The scheme is benchmarked against Nifty Midcap 100 Index$ (TRI) and will be managed by Vinay Paharia and Hardick Bora. “Midcaps are typically associated with high growth potential, but they also come with higher volatility, especially in the short term. Some of the stocks from the midcap category tend to grow at a faster rate and eventually become large. However, there are many companies in the midcap segment that falter and fail to grow. Hence, stock selection becomes a crucial factor while managing a mid-cap fund. Having the right allocation to midcap funds can enhance the overall returns of one’s portfolio,” said G Pradeepkumar, Chief Executive Officer (CEO), Union Asset Management Company Pvt Ltd.

Union Mutual Fund is co-sponsored by Union Bank of India and Dai-ichi Life Holdings Inc of Japan.

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Published on February 27, 2020
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