Our Bureau

Mumbai , Dec. 7

MID-cap funds launched by asset management companies have been able to successfully ride the wave of the last several months.

Mid-cap funds have managed to post robust returns over the last year, according to data from Value Research.

Birla Midcap fund has posted 41.44 per cent for the last year and is currently quoting at a net asset value of Rs 28.67. Sundaram Select Midcap, registered returns of 40.22 per cent for the year and 45.42 per cent for the last six months.

These are considerable when measured against the sector average of 31.71 per cent and 35.24 per cent for the year and six months respectively posted by the diversified equity funds.

Chola Mid cap fund, launched in July this year, has posted 16.11 per cent returns for the last quarter. UTI Mid Cap fund has also grossed 35.4 per cent for the last half year.

Distributors say that with the strong mid-cap rally and market focus in this category have effected positive inflows into these funds.

Magnum Mid Cap Fund: SBI Mutual Fund is looking to enter this party and has filed its draft offer document for launching the Magnum Mid Cap Fund.

The investment objective of this fund provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of companies whose market capitalisation is between Rs 200 crore and Rs 2,000 crore and in debt and money market instruments, according to the offer document.

The fund would invest at least 70 per cent in equity, with the option of 30 per cent investment in debt and money market products.

Units are being offered at Rs 10 per unit at par during the initial public offer of the fund.

Entry load would be charged at 2.25 per cent for investments less than Rs 25 lakh and at 0.5 per cent for investments between Rs 50 lakh and Rs 2 crore, says the offer document.

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