The latest entrant in this space is IDFC Mutual Fund which announced the launch of its IDFC Balanced Fund today. The NFO will be open for subscription from December 12 to December 26, 2016.
The fund restricts equity exposure to 60% while allocating the balance to fixed income instruments. “This gives investors a meaningful investment allocation to each asset class. Investors therefore benefit from the capital appreciation opportunities that equity investments provide, while also providing steady returns and limiting downside risk significantly with its 40% exposure to fixed income instruments. Added to this, active fund management of both equity and debt, and a highly experienced fund management team make it an appropriate tool for long-term wealth creation,” said a press release issued by the company.
Vishal Kapoor, CEO, IDFC AMC said, “The IDFC Balanced Fund is aimed at investors who want growth as well as stability in returns for their hard-earned money at the same time. The 60/40 allocation is well-accepted as an optimal asset mix for a Balanced Fund. It will be attractive for investors who do not want to risk reading market direction, especially given current market volatility. We believe this should be a core product in a customer’s long term portfolio.”
The minimum application amount for this fund is Rs. 5,000, with the SIP option starting at Rs. 1,000. The fund offers a direct and regular plan, both with growth and dividend options. An exit load of 1% is applicable if redeemed/switched out within 12 months from the date of allotment. The fund offers nil exit-load for redemption up to 10% of the investment amount.
The equities portion of the fund will be managed by Anoop Bhaskar, Head – Equities, IDFC AMC and the fixed income portion will be managed by Suyash Choudhary, Head – Fixed Income, IDFC AMC and Anurag Mittal, Associate Director – Fixed Income, IDFC AMC.
IDFC MF has assets under management of close to Rs 58,500 crore as on November 30, 2016.