Lotus launches mid-cap, contra fund

MUMBAI: Lotus India AMC has announced two new fund offers - the Lotus India Contra Fund and Lotus India Mid Cap Fund - to add to its gamut of five existing funds.

The company, a joint venture between Fullerton Fund Management and Rana Talwar headed Sabre Capital Worldwide, plans to introduce seven more fixed maturity funds by March to take the total number of funds to 14, Lotus India CEO Ajay Bagga told reporters.

While contra fund is an open-ended equity fund, which aims to generate capital appreciation through contrarian investing, the mid-cap fund is a closed-ended equity fund with a maturity of three years, which will invest in a portfolio that majorly constitutes of equity and equity-related instruments.

Both the funds open on February 15 and will close on March 15. The Contra Fund will re-open for ongoing purchase and redemption on or before April 13.

Contra Fund is driven by fundamentals and involves picking up neglected stocks with strong asset values.

The Lotus India Mid-Cap fund targets long-term capital appreciation by disciplined long-term investing to make it a low-risk and high-return portfolio, Lotus India Chief Investment Officer Equity Tridib Pathak said.

Lotus India AMC has presence in 45 locations which will be increased to 100 while it has Rs 850 crore of assets under management, Bagga said.