Merrill Lynch NFO eyes small and mid cap
Large cap stock that have reached the peak of their valuation during the current bull run in the market were set for a correction in near future, said Naganath.
By PTI |
MUMBAI: DSP Merrill Lynch (ML) Fund Managers Ltd on Monday announced a new fund offer (NFO) DSP M L Small and Mid Cap Fund which would invest in small and mid cap stocks that were undervalued but showed good promises in the long term.
Small and mid cap indices have generally outperformed the large cap indices in the long term but have underperformed in the recent past, said Anup Maheshwari, Head-Equities & Corporate Strategy, DSP LM during the launch of the fund here today.
The profitability of companies across sectors is increasing due to strong industrial growth & economic expansion but several companies in the small and mid cap segment have yet to benefit from this structural change, the fund will seek to identify and capitalise on such opportunities, said S Naganath, President and Chief Investment Officer, DSP ML Fund Managers.
Large cap stock that have reached the peak of their valuation during the current bull run in the market were set for a correction in near future, said Naganath.
The NFO has set a target to mop up an amount upward of Rs 1,000 crore and would invest more than 65 per cent in in 50 to 70 mid and small cap stocks. The NFO opens for subscription from September 29 and close on October 16.
This NFO from DSP Merrill Lynch comes after a gap of more than two years since they last launched DSP ML India TIGER Fund.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
