Lotus India Mid Cap Fund in Midcap Funds'
Many say that this is the year of the midcaps and many midcap schemes from other leading AMCs which have already experienced good number of markets cycles by now are all set to unlock the real value of the stocks in their portfolio now. Lotus India Mid Cap Fund is a closed ended equity scheme with a maturity of 3 Years. Its investment objective is as follows: “The Scheme seeks to provide long term capital appreciation by investing in a portfolio that is predominantly constituted of equity and equity related instruments of mid cap companies. However, there can be no assurance that the fund’s objectives will be achieved.” The minimum application amount for this scheme is Rs. 5,000/- plus in multiples of Re.1/-. Resumptions can be made at specified resumption period for a minimum of Rs. 1,000/- or 100 units. Since this is a close ended fund, SIP facility will not be available. The good news for this scheme is that there is no entry load. Exit load will be applicable on redemption before maturity of the scheme, investors will be charged balance proportionate unamortized issue expenses on the applicable NAV. Tridib Pathak will be the fund manager for this scheme. CNX MIDCAP Index will be taken as the Benchmark Index. The Lotus India Midcap Fund NFO opens on February 15, 2007 and closes on March 15, 2007 Our take on Lotus India Midcap Fund Lotus India AMC is a new fund house and its existing products have not yet been into a good number of complete market cycles yet. Added to this, midcaps space in general is a high risk area. Though midcaps stocks are stealing the show in the current market conditions, things can change a lot either ways in a 3-year term. Since this scheme is a close ended fund and the existing funds of this AMC are doing normal if not extraordinarily (NAV of few of their existing schemes are currently below the NFO levels), we think new investors should stay away from the fund. There are many other midcap funds from other fund houses that have experienced reasonably good number of market cycles and have been tested well by investors too. However, this fund is good for high risk taking investors who can really wait till the end of the 3-year duration to get the returns - particularly because there is no entry and exit loads (if investment is put for the entire 3 year period). NAVs of select Midcap schemes Birla MIDCAP Fund-Plan A (Dividend) - 22.84
Birla MIDCAP Fund-Plan B (Growth) - 63.5
DBS Chola Mid Cap Fund-Cumulative - 25.73
DBS Chola Mid Cap Fund-Dividend - 14.85
DBS Chola Multi-Cap Fund-Cumulative Option - 18.05
DBS Chola Multi-Cap Fund-Dividend Option - 14.39
DSP Merrill Lynch Small and Mid Cap Fund - Institutional Plan - Dividend - 10.32
DSP Merrill Lynch Small and Mid Cap Fund - Institutional Plan - Growth - 10.32
DSP Merrill Lynch Small and Mid Cap Fund - Regular Plan - Dividend - 10.298
DSP Merrill Lynch Small and Mid Cap Fund - Regular Plan - Growth - 10.298
HSBC Midcap Equity Fund-Dividend - 15.8126
HSBC Midcap Equity Fund-Growth - 19.3605
ING Vysya Midcap Fund-Bonus Option - 16.76
ING Vysya Midcap Fund-Dividend Option - 15.33
ING Vysya Midcap Fund-Growth Option - 16.76
Kotak-Mid-Cap-Dividend - 15.31
Kotak-Mid-Cap-Growth - 19.955
Sahara Midcap Fund-Auto Payout - 17.8219
Sahara Midcap Fund-Bonus - 17.8219
Sahara Midcap Fund-Dividend Plan - 15.907
Sahara Midcap Fund-Growth Plan - 17.8219
SBI Magnum MIDCAP FUND - DIVIDEND - 18.94
SBI Magnum MIDCAP FUND - GROWTH - 22.05
Sundaram BNP Paribas Select Midcap-Dividend - 15.4563
Sundaram BNP Paribas Select Midcap-Growth - 90.2151
Tata Mid Cap Fund - Dividend - 13.8548
Tata Mid Cap Fund - Growth - 13.8562
UTI Mid Cap Fund-Growth Option - 21.69
UTI Mid Cap Fund-Income Option - 18.
