Edelweiss Mutual Fund launch Edelweiss Select Midcap Fund

The objective of the scheme is to generate long-term capital appreciation by investing in equity and equity related securities of small and mid-cap companies, the asset management firm said.

Available with growth and dividend options, the fund will invest in strong businesses having predictable cash flows and sustainable long-term competitive advantages.

“We will invest in mid-cap companies with market capitalisation from ₹ 2,000-crore to ₹ 15,000-crore," Edelweiss Mutual Fund executive vice president, Peeyoosh Chadda told reporters here, adding that the fund house would not invest in leveraged companies.

The fund will create a portfolio of growth and value, based on the quant model adopted by the fund house.

“We are not looking at spectacular returns, but we will look at delivering consistent returns. We will beat the Sensex by 4-6% in our returns," Chadda said.

The fund will have an equity component of 80-100% and the debt and money-market securities will be in the range of 0-20%.

New Fund Offer starts from 4 August and closes on 18 with minimum investment option of ₹ 5,000. The scheme would be managed by Paul Parampreet and Nandik Mallik.

The fund house manages ₹ 90 crore in equities and ₹ 300 crore in debt portfolio under the quant model. Its average assets under management stood at ₹ 258.38 crore as on 30 June , 2011.