Mumbai: Asset management firm Birla Sun Life on 9 April announced the launch of a new fund that will invest in small- and mid-cap companies.
Birla Sun Life Long Term Advantage Fund-Series 1 is a three-year, close-ended equity fund that would invest in small and mid-cap companies, Birla Sun Life Mutual Fund vice-president Raghvendra Nath said at a press meet here.
“The growth potential of small and mid-cap companies is higher than large cap ones,” he said. Substantiating his point, he said IT giant Infosys’ market cap has grown 242% between 2004 and 2007, while that of small cap Nucleus Software grew by a whopping 2,425% in the same period.
So far, Birla Sun Life has been investing in Bharat Bijlee, TRF, RPG Transmission, Sundaram Clayton, Automobile Corporation of Goa and TAJ GVK, Nath said.