VR Logo

More Mid-cap Funds in the Offing


The mid-cap magic has enticed Canbank and SBI mutual funds as well-the two fund houses have launched funds to exploit the potential of such stocks.

Canbank's Canemerging Equities' IPO opened last week and would continue till February 23, 2005. The fund aims to generate returns by primarily investing in diversified mid-cap stocks. It would invest 65 to 100 per cent of its corpus in companies with market capitalisation of Rs 100 to Rs 2,500 crore. The fund could invest 10 to 35 per cent of its assets in other companies. It has the mandate to invest 5 to 15 per cent in debt and money market instruments.

Benchmarked against BSE 200, the fund would charge an entry load 2.25 per cent for investment less than Rs 2 crore. There won't be any entry load for investment above Rs 2 crore.

SBI Mutual Fund has named its fund as Magnum Mid-cap Fund. The fund will be open for initial subscription between February 21 and March 17, 2005. It won't charge any entry or exit load.

The fund would invest 65 to 100 per cent of its corpus in companies with the market capitalisation between Rs 200 and Rs 2,000 crore. Investment up to 10 per cent of the assets can be made in stocks outside this range.