Chola Midcap Fund to declare 10% second dividend

Mumbai: Chola MF, has declared a dividend of 10 per cent in the Chola Midcap Fund. (Re1 per unit on the face value of Rs10). This is the second dividend declared by the fund since its launch in August 2004. Investors, whose names appear in the register of unit holders as on January 24, 2005, would be eligible for the dividend. The net asset value of the fund as on January 4, 2005 stood at Rs13.01 per unit.

Chola Midcap Fund predominantly invests in equity shares of companies that have a market capitalisation between Rs300 Crores to Rs3,000 crores. Chola Midcap Fund follows a disciplined philosophy of building its portfolio through careful stock selection among midcaps.

"With rapid economic growth, there are far more business opportunities opening up, and many mid sized companies are positioned to benefit from these opportunities. Chola Midcap Fund, a fund that invests in such mid sized companies, would be an ideal vehicle for small investors to participate in the growth." said Sashi Krishnan, chief executive, Chola Mutual Fund.

Chola Midcap Fund had earlier declared its maiden dividend of 10 per cent on 24 November 2004. The fund offers both, dividend and growth options. The minimum application amount is Rs5,000 under both the options.