Cholamandalam Mutual Fund is launching an open-end equity scheme called Chola Midcap Fund on June 25, 2004. This will be the sixth mid-cap fund in India. The fund would invest in those mid-cap stocks that have a market capitalisation of around Rs 300 crore to Rs 3,000 crore.
Under normal circumstances, the fund will invest 80-100 per cent of the assets in equities while exposure to money market instruments will be capped at 20 per cent. However, the fund will normally restrict its exposure to any single stock to around 5 per cent and to any single sector to around 20 per cent.
Initial Issue Opens - June 25, 2004.
Intial Issue Closes – July 23, 2004.
Minimum Investment - Rs 5,000 and in multiples of Re 1 thereafter.
Entry Load -- 2% for investment upto Rs.25 Lakh and nil for investment over Rs. 25 Lakh and above
Plans – Growth, Dividend
Benchmark Index - CNX Midcap 200.