IDFC Mutual Fund launches IDFC Mid Cap Fund

IDFC Mutual Fund has launched IDFC Midcap Fund, an open-ended equity scheme investing predominantly in equities and equity-linked securities in the midcap segment.

According to 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.

Governance/Sustainability involves selecting companies based on factors such as strong governance, capital allocation track record, and a sustainable business model, enabling the fund manager to take a long-term view of the business. Capital Efficiency provides a structural opportunity for a business to earn an optimal return on the invested capital, which is key to creating value for shareholders. Companies with a Competitive Edge in the industry could develop a strong franchise network, resulting in a value proposition for customers through cost/product differentiation.