Standard Chartered MF Unveils Small & Midcap Equity Fund

Standard Chartered Mutual Fund has launched a fund called Standard Chartered Small and Mid cap Equity Fund and it is a close-ended equity scheme. The tenor of the scheme is 36 months with automatic conversion into an open-ended equity on the completion of 36 months.

The investment objective of the Scheme is to generate capital appreciation from a diversified portfolio of equity and equity related instruments. The investors may choose either dividend or growth option. Reinvestment facility is available under dividend option. The scheme charges no entry load as it is of close-ended nature. However, after conversion of the scheme into open ended there will be 2.25% an entry load charged for purchases of less than Rs. 5 crores. During the scheme remains close ended it carries no exit load if the investment redeemed before the date of maturity. After the conversion of the scheme into open-ended, it may charge 1% an exit load for redemption of investment units within 1 year from the date of subscription.

The scheme will invest up to 65-100% in equities and equity related instruments included in the CNX Midcap Index or equity and equity related instruments of companies which have a market capitalization lower than the highest components of CNX Midcap Index, of which small cap stocks shall be 15-50% of net assets and mid cap stocks shall be 50-100% of net assets. The scheme will invest 0-35% in equity and equity related instruments of companies, which have a market capitalization higher than the highest component of CNX Midcap Index i.e. in equity and equity related instruments of companies with market capitalization above the defined small, mid cap stocks. Investments in derivatives may be up to 100% of the net asset of the scheme. Investments in securities lending shall be up to 100% of equity investments in the scheme.