Union AMC announces the launch of Union Midcap Fund (â€œthe Schemeâ€). The Scheme is an open-ended equity scheme predominantly investing in mid cap stocks. The New Fund Offer (NFO) opens on March 2 and closes on March 16.
The allotment would be on March 23 and it will re-open for continuous sale and repurchase on March 30.
The Scheme is benchmarked against Nifty Midcap 100 Index $ (TRI) and will be managed by Vinay Paharia and Hardick Bora. The minimum investment required is Rs 5,000 and in multiples of Rs 1 thereafter.
The Scheme will predominantly invest in equity and equity related instruments of mid cap companies. G. Pradeepkumar, Chief Executive Officer (CEO), Union Asset Management Company Private Limited, said â€œThe launch of Union Midcap Fund is an important step in our endeavour to offer a complete bouquet of products for our investors. 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 which falter and fail to grow. Hence, stock selection becomes a crucial factor while managing a mid-cap fund. This is where the robust investment process followed by Union Mutual Fund plays a vital role. It helps us to ensure that we pick up high quality companies at reasonable price. Having the right allocation to midcap funds can enhance the overall returns of oneâ€™s portfolio.â€