Deutsche Asset Mgt launches close-ended equity fund
Mumbai, Dec 1 (PTI) Deutsche Asset Management India today said it has launched DWS Mid Cap Fund Series 1, a three-year close-ended equity fund.
The new fund offer period is from December 1 to December 15, 2014.
The objective of the scheme is to generate long-term capital appreciation from a portfolio that comprises equity and equity related securities of midcap companies.
“DWS Mid Cap Fund is an ideal investment solution for investors seeking to participate in equity markets. As the Indian economy continues to revive we are confident that investors will benefit from the growth prospects of mid cap stocks in the long run,” Deutsche Asset Management India MD & CEO Suresh Soni said in a statement.
The fund portfolio will comprise 70-100 per cent of midcap companies.
“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,” Deutsche Asset Management India fund manager – equity Akash Singhania said.
Valuations are reasonable considering that Indian markets are trading around 17 per cent one year forward earning, in the context of a higher growth trajectory, he added.