TRUST Mutual Fund has launched Mid Cap Fund, an open-ended equity scheme predominantly investing in mid-cap companies. The fund seeks to generate long-term capital appreciation by investing in equity and equity-related instruments of businesses ranked 101st to 250th in terms of full market capitalisation.
The scheme will be benchmarked against the Nifty Midcap 150 TRI. The New Fund Offer opened for subscription on Friday.
Mid-cap companies represent a distinctive stage in the corporate lifecycle as they generally would have moved beyond early uncertainty and are positioned for scalable expansion. Mid-caps in India have a market capitalisation of Rs 34,800 crore to Rs 1.04 lakh crore.
Many segment leaders are only available in the mid-cap universe across digital platforms, manufacturing, financial services, infrastructure, retail and niche consumption categories offering investors exposure to companies before they transition into large-cap status.
In the last 5 years alone, 37 mid-caps have delivered over 3 times returns.
Sandeep Bagla, Chief Executive Officer, TRUST MF said the investment process of the fund house combines fundamental analysis, relative valuation and Terminal Value Investing to identify businesses to create sustainable long-term value.