Chola MF to mop up Rs75 crore

Chennai: Cholamandalam AMC Limited (Chola Mutual Fund) hopes to raise Rs75 crore through its Chola Multi Cap Fund launched recently. The fund will have a mix of large, mid and small cap equity stocks so that the investors are able to derive the benefits of any kind of swing. However, exposure to small cap stocks will not exceed 15 per cent.

Units are offered at Rs10 per unit plus an entry load of 2 per cent in the case of investments less than Rs25 lakh, and no load for investments above Rs25 lakh. The minimum application amount during the initial offer period is Rs5,000 and in multiples of Re1. The scheme has both cumulative and dividend options.

According to chief executive Sashi Krishnan, the long term economic drivers — demographics, trends in outsourcing, infrastructure development, consumerism and capital expenditure — are favourable for India. "India is one of the three economies in the world that is logging over 5 per cent growth rates," he adds.

Krishnan is of the view that valuations of equity scrips are attractive for investments and the sensex is yet to touch the highest point.

When queried about the impact of life insurance companies offering unit-linked insurance policies on mutual fund players, Krishnan said that the impact is almost nil as the product offered by the insurers is more a life insurance whereas mutual fund products are essentially for wealth creation.