Peerless Mutual Fund launches Peerless Midcap Fund

MUMBAI: Peerless Mutual Fund has launched Peerless Midcap Fund, an open ended growth scheme. The NFO opens for subscription on November 16, 2015 and closes on November 30, 2015. No entry load and exit load will be applicable for the scheme. The minimum subscription amount is Rs 1,000.The fund will be managed by Amit Nigam and Kilol Pandya.

Investment objective

The investment objective of the scheme is to generate medium to long-term capital appreciation by investing predominantly in equity and equity related securities of mid cap companies. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns. In order to get the best results for investments the fund managers believe it is important to identify companies which exhibit growth characteristics and belong to a‘growing industry’. Such companies, in the sweet spot, are typically medium sized enterprises and therefore have capitalizations which are in the mid-range. . Midcaps have the potential to become large caps. With the right fundamentals and minority shareholder friendly management; over longer times the company may grow into a large cap.

Outlook

The portfolio and style of management of the fund is unknown in an NFO. Financial planners suggest investors look at funds which have an existing track record from other mutual fund houses, rather than investing in NFOs.