Merrill Lynch hopes to raise Rs 1000 Cr Small and Mid Cap fund

Bangalore, Sep 28 (UNI) The new offer of fund managers DSP Merrill Lynch for investment in securities of Small and Mid Cap companies opening tomorrow is expected to tap around Rs 1000 crore, Company President and Chief Investment Officer S Naganath said today.

Talking to newsmen here about the new fund DSP Merrill Lynch Small and Mid Cap Fund, he said the fund would close on October 16 and it had drawn encouraging support.

He said Small and Mid Cap indices have generally out performed the large cap indices in the long term, but have under performed in the recent past. Applying the principle of buy low, sell high, DSPML fund managers endeavour to take advantage of the current environment for mid and small caps to optimse returns, he added.

He said the Indian capital market were undergoing a scale of shift. The profitability of companies across sectors was increasing due to several factors, including industrial growth and economic expansion, rising export revenues and a rapid growth of sunrise industries.

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