The New Fund Offer (NFO) will open for subscription on July 15 and close on July 29.
The scheme will invest at least 65% of its assets in equity and equity-related securities of mid-cap companies, while retaining the flexibility to invest in other equities and money market instruments for diversification and liquidity. It will be benchmarked against the Nifty Midcap 150 Total Return Index (TRI).
According to the fund house, the scheme will follow a research-driven investment approach to identify mid-cap companies with established business models, competitive positioning, scalable growth opportunities and improving profitability.
The fund manager will use the asset management company’s proprietary investment frameworks to evaluate businesses on qualitative and quantitative parameters before constructing a diversified portfolio of mid-cap stocks.
The launch comes amid continued investor interest in the mid-cap segment, which has seen strong inflows over the past few years despite higher volatility than large-cap stocks. Mid-cap companies are generally considered to offer higher growth potential but may also be subject to sharper price fluctuations and liquidity risks.
The fund is the 11th scheme launched by The Wealth Company Mutual Fund since the asset management company commenced operations around 11 months ago.
As with other mid-cap schemes, investors should consider their risk appetite, investment horizon and portfolio allocation before investing, as returns may be more volatile than those of diversified large-cap funds.
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