Chola Mutual launches two funds

Chennai: Cholamandalam AMC Limited (Chola Mutual Fund), part of the Rs5,200-crore Murugappa group is floating two open-ended schemes. While one will focus on investing in mid cap stocks called Chola Midcap Fund, the second is an income fund — Chola Income Plus.

Addressing the media here Sashi Krishnan, chief executive, said, "The fundamentals of stocks remain unchanged and valuations are attractive. On the other hand, the systemic risks of investing in mid cap stocks have come down while politics is not a major concern."

According to him the monies mobilised under the mid cap fund will be invested in stocks based on the company's business model, management quality, business fundamentals and valuation.

Units are offered at Rs10 per unit plus an entry load. The minimum application should be for 500 units.

The Chola Income Plus fund is floated with an aim of investing predominantly in debt and money market instruments (90-100 per cent). Units are offered at Rs10 per unit for cash at par. The minimum application amount under the dividend option is Rs10,000 and any amount thereafter and Rs5,000 under the cumulative option.