Mumbai:
Investors looking to invest in a mix of large and
midcap stocks could consider allocating a small amount to the new fund offer of
HSBC Large and Midcap Equity Fund, said advisors. But investors should first consider existing funds in the category, which have a track record, before looking at new funds, they said.
An open-end equity
mutual fund scheme, the fund will invest in a mix of large and midcap stocks. The scheme will invest at least 35 per cent of its corpus in
large-cap and midcap stocks each.
The NFO is currently open and will close on March 25 and investors can start with a minimum of Rs 5,000.
Fund managers say they believe that with the economy on a recovery path, there is a potential for both large cap and midcap stocks to perform.
Since midcap stocks have been beaten over the last year, they could bounce back faster and a
portfolio of large and mid cap stocks could give decent returns.
“Power of consistent large Caps and potential of growing mid caps can be a winning combination,” says Tushar Pradhan, Chief Investment Officer, HSBC Mutual Fund.