Deutsche MF is the 13th fund house to launch a closed end fund.
Deutsche Mutual Fund today announced the launch of its three year closed end fund called DWS Mid Cap Fund Series 1, said a press release issued by the fund house.
The new
fund offer opened for subscription on December 1 and closes on December 15,
2014.
The scheme
aims to generate long term capital appreciation by investing in equity and
equity related securities of mid cap companies. The fund will invest a minimum
of 70% of its assets in mid-cap companies and up to 30% in non-mid cap
companies.
According to DWS MF presentation, the fund will invest in sectors comprising manufacturing, consumer discretionary, and agriculture, among others. Currently, the fund house is bullish on sectors like automotive, banking & financials, consumer discretionary, industrials, software and energy.
In a press release, Akash Singhania, Fund Manager – Equity, Deutsche Asset Management India said, “Mid cap stocks have a higher weight in domestic cyclical industries, making them a direct play on the Indian economy. In the last 10 years, mid cap stocks have outperformed Nifty in the previous growth phases of the Indian equity markets. Mid-caps are yet to see earning upgrades and have outperformed during periods of easing interest rate. Valuations are reasonable considering that Indian markets are trading around 17x one year forward earning, in the context of a higher growth trajectory.”
Benchmarked against CNX Mid Cap Index, the fund will
be managed by Akash Singhania and Rakesh Suri. The minimum application size is
Rs. 5,000.
Deutsche Mutual Fund manages assets under management
of Rs. 22,508 crore as on September 2014.
There have been a flurry of closed end fund launches in the recent past. So far, 42 closed end funds have collected Rs. 8,908 crore.
