IDFC MF launches IDFC Midcap Fund, NFO, to open this week. details inside

“The midcap category has generated relatively better risk-adjusted returns over a period of time as compared to large caps and also facilitates wider diversification across sectors. In addition, the average size of companies in the midcap universe has increased during the past three years. IDFC Midcap Fund is well positioned to provide investors with an opportunity to benefit from the strong growth potential of midcap companies over the long term,” the Asset Management Company (AMC) said in the release.

The key difference of IDFC Midcap Fund is that it will follow a 5 filter framework for selection of stocks, thereby helping to build a high-quality, growth-oriented portfolio. IDFC MF said that this investment framework selects companies based on five basic parameters, which include Governance/Sustainability, Capital Efficiency, Competitive Edge, Scalability and Acceptable Risk/Reward. Sachin Relekar, Senior Fund Manager – Equity, IDFC AMC is the Fund Manager of IDFC Midcap Fund.

Highlighting the rationale behind the launch of IDFC Midcap Fund, Mr. Vishal Kapoor, CEO, IDFC mutual fund said, “With rising inflationary pressures on the Indian economy, investors have realized the importance of investing in growth-oriented assets that can facilitate capital appreciation over the long term. The midcap segment sees the opportunity for wealth creation over the years. Displays a compelling risk-reward balance, and wider sectoral representation than large-caps, thereby providing significant potential for growth with reasonable stability over the long term.IDFC Midcap Fund provides investors with a fundamentally Will provide an opportunity to benefit from the strong growth potential of strong mid-cap companies.”

Established in 2000, IDFC AMC is one of the top 10 asset managers in India, with more than 1,16,000 crore (~USD 12bn) average assets under management (AAUM) in June 2022.

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