The Hindu Business Line : Kotak Mutual launches Mid-Cap Fund

KOTAK Mahindra Mutual Fund has launched Kotak Mid-Cap, an open-ended Equity Growth Scheme. The scheme will invest primarily in equity and equity-related securities of mid-cap companies.

In 2004, the CNX Mid-Cap Index gained 44 per cent, outperforming the BSE Sensex, which posted a return of 13 per cent during the same period, by a huge margin. And there are other reasons for mid-caps to flourish in India: Many emerging sectors in India have no large-cap presence - to participate in the growth of these sectors necessitates investing in mid-caps, said a company press release.

Mr Ajay Bagga, CEO, Kotak Mahindra AMC Ltd, said: "In India's transitioning economy, new business opportunities and sectors continually present themselves, to be filled by emerging companies. As some of these companies grow to fill their business space, they experience high growth-rates in their transition to large-caps."

The fund managers of Kotak Mid-Cap will invest in mid-cap companies picked through a bottom-up process, where each company will be evaluated individually and not on the basis of the sector to which it belongs, said the release.

Up to 95 per cent of the portfolio will be invested in equities, with mid-cap investments ranging between 65-95 per cent of the portfolio. 0-30 per cent of the portfolio can be invested in other equities, and 5-35 per cent in debt and money market securities.

The initial public offering of the scheme is open till January 28.

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