The Hindu : Business : Chola MF launches Multi-Cap Fund

Online edition of India's National Newspaper
Thursday, Dec 16, 2004

Business

Business

Chola MF launches Multi-Cap Fund

By Our Special Correspondent

NEW DELHI, DEC. 15. In order to capitalise on the strong market sentiment, Chola Mutual Fund has launched an open-ended equity scheme Chola Multi-Cap Fund and made the initial public offering to raise Rs. 75 crores.

To help the investors earn better return, Chola Multi-Cap Fund IPO, which is open for subscription from December 14 to January 10, 2005, would invest in equity and equity-related instruments across all ranges of market capitalisation, the chief executive of Chola Mutual Fund, Sashi Krishnan, said at a press conference here.

"We had launched Chola Mid-Cap fund in August. The fund was very good but the market sentiment was not. This time we are launching the multi-cap fund when both factors are strong to benefit the investors," Mr. Krishnan elaborated.

He said that the exposure to large cap would be maintained between 25 and 75 per cent and the mid cap exposure between 25 and 75 per cent while exposure to small cap stocks would not exceed 15 per cent.

"Through the multi-cap fund, the MF will be able to provide investors with added diversification, allowing tactical shifts across market caps depending on the conditions," he said, adding that the scheme would have both cumulative and dividend options. The scheme would target retail and individual investors and expects to garner Rs. 75 crores through the public offer. Pointing out that the performance of the diversified funds has been far better with investors getting 14 times return compared to five times return from the Sensex boom, he said the profits of Indian corporates would be higher in the next few years resulting in superior returns from equities.

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