The new fund offer opened for subscription on March 10 and closes on March 24.
IDBI Mutual Fund has launched an open ended equity fund called IDBI Diversified Equity Fund. The new fund offer opened for subscription on March 10 and closes on March 24.
Sarath Sarma, Executive Director, IDBI Mutual Fund told Cafemutual that the fund house is expanding its range of product suite in the equity category. This is their third equity fund after IDBI India Top 100 Equity Fund and IDBI Tax Saving Fund (ELSS).
The fund house is currently managing AUM of Rs. 5213 crore as on December 2013.
“Unlike IDBI’s India Top 100 Equity and Tax Saving Fund, the IDBI Diversified Equity will invest in a mix of all market capitalization whether it is large-cap, mid-cap or small-cap. Also, the fund will have a flexibility to allocate its corpus among various sectors depending on outlook. We observed a decent uptick in terms of appetite for equity among investors for last three to four months. We believe that it is the best time to invest in equity since the market is poised to touch new highs,” said Sarma.
V Balasubramanian, Head - Equity & Fund Manager - Equity & Gold said, “The fund will follow a combination of growth as well as value picking. However, more weightage will be given to growth picking strategy. The fund is designed to capture mispriced opportunities in the market since valuations are very cheap at the moment.”
“The fund will select stocks on the basis of quantitative and qualitative analysis. While quantitative factors involves companies showing improvement in margin and having reasonable or manageable debt, qualitative factors will track companies with high corporate governance and strong market position,” added Balasubramaniam.
The scheme aims to generate long-term growth in capital by investing in equity and equity related instruments. The fund can also allocate a small portion in debt and money market securities depending on certain conditions.
Benchmarked against S&P BSE 500, IDBI Diversified Equity Fund will invest in fundamentally strong companies having investment merits like competitive position in market, potential earnings growth, good management quality etc.
The minimum application amount is Rs. 5000. The scheme will charge an exit load of 1% if redeemed within a year. No exit load will be charged thereafter.
