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.
|Instruments||Normal Allocation (%)||
(Low / Medium / High)
|Equity and Equity Related Instruments of Midcap companies||65%||100%||High|
|Debt and Money Market Instruments||0%||35%||Low to Medium|
Evidence from last 10 years data suggests that during a time of favorable economic condition, midcap stocks usually outperforms the large caps. Over the last 14 years (from April 2001 to March 2015), Nifty Midcap 100 Index has given almost 23% CAGR vis-à-vis Nifty 50 Index which has given almost 17.5% CAGR (implying the former going up almost 18x vis-à-vis 9.5x) (Data source: Bloomberg. Apart from that, Midcaps have some additional features that distinguishes them form their large cap counterparts.
New entrant in an Industry
- Fights for market share – achieving it profitably creates shareholder wealth
Niche/ Focused Business
- Businesses not existing earlier e.g. e-commerce; pizza etc.
- Regional companies e.g. cement, banks, NBFCs
- A particular part of an integrated business e.g. auto ancillary
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.
Trade at a Discount
- In last ten years (April 2005 to Aug 2015. Data source: Bloomberg), on an average, Nifty Midcap 100 has traded at 15% discount to the Nifty 50 – an additional wealth creation leg.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
KIM for Midcap Fund
SID - Peerless Midcap Fund
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Fact Sheet for December 2016
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Fact Sheet for October 2016
Fact Sheet for September 2016
Fact Sheet for August 2016