AIG MF Files Offer Document

AIG mutual fund has filed an offer document for AIG Mid Cap-fund an open-ended equity scheme with two plans namely regular plan and institutional plan. The new fund offering (NFO) for the scheme is Rs. 10 plus applicable entry load. The fund house seeks to collect a minimum corpus of Rs 1 crore for the scheme. AIG Mid Cap Fund offers growth and dividend option. The dividend option offers dividend payout and reinvestment facility.

The minimum investment amount under retail plan is Rs. 5,000. The minimum investment amount under institutional plan is Rs. 5 crore. The scheme carries an entry load of 2.25% for the amount less than Rs. 5 crore under regular plan. There will not be any entry load for the investment above Rs 5 crore as well as investment made under institutional plan. The scheme charges an exit load of 1.00% for the amount less than Rs 5 crore and if it is redeemed on or before the expiry of 1 year from the date of allotment under the regular plan. The exit load will reduce to 0.50% for the amount of Rs 5 crores and above if redeemed on or before the expiry of 6 months from the date of allotment. Under institutional plan, the exit load will be at 0.50% if redeemed on or before the expiry of 6 months from the date of allotment under institutional plan. The investment objective of the scheme is to generate long-term capital appreciation from a diversified portfolio of equity and equity-related securities including equity derivatives.

The scheme will primarily invest in mid-cap companies whose market capitalization of Rs. 500 crore and above, but not greater than that of the company with the highest market capitalization in the CNX Midcap Index. The fund will invest 75%-100% in equity and equity related securities of mid cap companies. The investment in equity and equity related securities of other than mid cap companies would be 0%-25%. The investment in debt and money market securities/instruments/funds will be 0% -25%. The fund would remain fully invested up to 90% in equity and equity related securities and will have only 10% in short term debt and money market instruments to meet short term liquidity requirements of the scheme.