It is an open-ended equity scheme that initially invests in mid-cap stocks. The main objective of the Aditya Birla Sun Life Midcap Fund Scheme is to achieve long-term capital growth by investing in mid-cap stocks,’ primarily at a managed risk level.
India is a hub for mid-cap businesses and has the potential to become the top companies of tomorrow. Mid-cap stocks are generally more affordable or undervalued, even as they are gearing up to be the leaders of tomorrow. Investing in such companies is helped by the Aditya Birla Sun Life Midcap Fund (ABSL Midcap Fund), which allows you to pick the right midcap stocks based on the business growth potential at the right time.
How Aditya Birla Sun Life Midcap Fund works
- The scheme will invest a significant portion of its investment assets (more than 65 percent) in mid-cap companies.
- In general, stocks of these companies are more volatile and less liquid than large-cap stocks.
- To diversify the portfolio, the scheme manager will invest up to 35 percent in stocks with higher or lower market capitalization. To meet liquidity needs, a small portion of the portfolio can be invested in call and money market instruments. The benchmark fund is Nifty Midcap 100 TRI.
Notable Features of Aditya Birla Sun Life Midcap Fund
- Aditya Birla Sun Life Midcap is an open-ended equity scheme.
- This scheme falls into the midcap category
- The smallest amount for investment is Rs. 1000.
- Jayesh Gandhi is the fund manager.
- In this scheme is no exit load.
Exit load – if the investor redeems the units within 365 days from the date of the allotment exit load charge, it will be 1%.
Aditya Birla Sun Life Midcap Fund is very beneficial for you
- Investors can invest in the fund for seven years or longer; you can consider a benefit that pleasantly defeats the rate of inflation and is higher than other fixed-income options.
- If you want long term capital growth, then it is useful for you
- These schemes mostly invest in mid-cap companies.
- If you want to invest for at least 3-4 years and are looking for high returns, then this is the best investment for you.
Income taxation: Capital gains and Dividends
If an investor sold his mutual fund units after one year from the date of origin of the investment, if you make a profit of up to Rs 1 lakh in your financial year, then this amount will be exempt from tax. If you get more than Rs 1 lakh, then this amount will be taxed at a rate of 10%.
Mutual fund dividends are taxed at the rate of 10% (actually 11.648% including surcharge and cess). Although this tax is not paid directly by the investor, it is deducted from the dividend revenue before it is given to the investor.