The fund is meant to be an all-season fund, seeking to optimize returns from interest rate movements.
IDBI Mutual Fund today announced the launch of its open-ended, diversified, actively managed IDBI Dynamic Bond Fund.
“The scheme would take active calls on duration and interest rate and create and modify the portfolio in line with the changing macroeconomic and interest rate environments. This flexibility in portfolio composition will generate optimum, risk-adjusted returns making this scheme relevant under all market conditions,” said Debasish Mallick, MD & CEO, IDBI Mutual Fund.
The fund will invest in government securities, T-Bills, PSU bonds and corporate bonds across various maturities. The fund is suitable for investors who have an investment horizon of more than one year but cannot identify trends in interest rate movements. The fund is mainly targeted at retail investors.
NFO Date: January 31, 2012 & closes on February 14, 2012
Benchmark: CRISIL Composite Bond Fund Index
Exit Load: 1% if redeemed before one year
Options: Growth & dividend
Asset allocation: 0% to 100% in debt and 0% to 100% in money market instruments
Minimum application: Rs. 5,000 in lump sum and Rs. 500 in SIP for 12 months
AAUM: Rs. 6,101.88 crore as on December 2011 (Source: AMFI)
Funds: 7 (excluding FMPs)
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Tax Incidence |
Existing Laws |
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Long Term (> 1Yr) |
10% without indexation |
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OR 20% with indexation |
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Short Term (<= 1 Yr) |
As per tax slab |
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Dividends |
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In hands of scheme: |
|
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Individual |
DDT* of 12.5% |
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Corporate |
DDT of 30% |
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In hands of investor |
Tax free |
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*Tax rates exclude surcharge & cess |
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