New Mid Cap Fund Launched for Investors
A new investment opportunity is now available for those who wants to grow their money over the long term. A new mid-cap has been launched that will mainly invest in mid-sized companies to help investors earn good returns over time.
The NFO new fund starts on February 20, 2025 and will remain open till March 6, 2025. The investors will be able to buy or sell units of the fund within five business days from the date of allotment after the NFO period ends.
The benchmark followed by this fund is NIFTY Midcap 150 Total Return Index (TRI). Investors will have the options to choose between two types of plans: Direct Plan or a Regular Plan. Each plan has two options – Growth and Income Distribution cum Capital Withdrawal (IDCW). The Growth Option will help you to grow all of your profits by reinvesting it further. Whereas, the IDCW Option allows investors to receive payouts at different intervals from the fund’s profits as decided by the fund managers. Investors going for the IDCW Option can choose between reinvestment, transfer, or payment of dividends. Such payments will be taxed as well as carry other charges according to the norms.
If the investors take out up to 10% of the invested amount within three months from the date of allotment, they will not incur any exit charge. But if they take out more than the limit during this time, then they will incur a 1% exit charge. Beyond three months, no exit charges for redemptions will be there.
To invest in this fund, a minimum of Rs. 5,000 should be invested during the NFO period and for future lump sums. Further investments can be done in units of Rs. 1. As this is an open-ended scheme, investors can sell or purchase units on any working day depending on the fund’s prevailing net asset value, subject to applicable fees.
The units of the fund will not be listed on any stock exchange, but they have a chance to be listed in the future. The mutual fund company may also reserve the right to modify rules of minimum investment under the provisions of SEBI (Mutual Funds) Regulations, 1996.
