“The midcap category has generated relatively better risk-adjusted returns across time periods compared to large caps and also facilitates broader diversification across various sectors. Moreover, the average size of companies in the midcap universe has expanded during the last three years. IDFC Midcap Fund is well-positioned to provide investors 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 differentiator of IDFC Midcap Fund is that it will follow a 5 Filter Framework for the selection of stocks, helping build a high- quality, growth-orientated portfolio. This investment framework selects companies based on five fundamental parameters including Governance/Sustainability, Capital Efficiency, Competitive Edge, Scalability, and Acceptable Risk/Reward, IDFC MF added. Sachin Relekar, Senior Fund Manager – Equity, IDFC AMC is the Fund Manager for IDFC Midcap Fund.
Highlighting the rationale behind launching the IDFC Midcap Fund, Mr. Vishal Kapoor, CEO, IDFC Mutual Fund said, “With the escalating inflationary pressures on the Indian economy, investors have realized the importance of investing in growth-oriented assets which could facilitate capital appreciation over the long term. The midcap segment demonstrates an opportunity for wealth creation over the years, a compelling risk-reward balance, and exhibits a broader sectoral representation compared to large-caps, thereby offering significant potential for growth with reasonable stability over the long term. IDFC Midcap Fund will provide investors an opportunity to benefit from the robust growth potential of fundamentally strong mid-cap companies."
Established in 2000, IDFC AMC is one of India’s Top 10 asset managers with over ₹1,16,000 crore (~USD 12bn) Average Asset Under Management (AAUM) in June 2022.
