Dubbed as Morgan Stanley Midcap Fund, the new fund plans to invest 65% to 100% of the assets in mid-cap companies, reported moneylife.in.
Further, about 35% of assets would be invested in companies other than mid-caps and up to 35% of assets would be invested in debt and money market instruments.
Mid-cap funds, which offer high returns when the economy grows, are generally risky and much depends on the quality of stocks present in the portfolio.
Jayesh Gandhi and Dhaval Shah have been appointed to manage the fund. Both of them have been with Morgan Stanley since August 2007, with over 15 years of experience in investment management and equity research.
The US company said that the benchmark index of the scheme shall be the CNX Mid-Cap Index.
Along with its investment advisory affiliates, Morgan Stanley Investment Management, has more than 550 investment professionals globally and $347bn in assets under management as of 30 June 2013.
