Mumbai: IDFC Mutual Fund announced the launch of its IDFC Infrastructure Fund.
NFO Period: February 7, 2011 to February 21, 2011
Investment mandate: The fund will invest in all companies that are engaged in financing, developing, operating and maintaining any facility/project in the infrastructure sector. It will follow a bottom up approach.
The fund will invest in shares which have attractive valuations at this juncture. The AMC chose not to launch an infrastructure fund in the past when a host of such schemes hit the market. “It was relevant to launch a mid cap product at that time given where the market was positioned. We think today the market has underestimated infrastructure sector. This is the best time to create an entire portfolio. Investors will get valuations which were not available for the last five years,” says Kenneth Andrade, Head-Investments, IDFC Mutual Fund and the designated Fund Manager for this fund.
Target Investors: The scheme is suited for investors with a high risk profile.
Distribution: The fund will be distributed through IFAs, stock exchange platforms and private banks. The focus will be more on spreading the message across financial planners. The fund would be available in more than 600 cities.
“We will have extensive one-on-one interaction with advisors and relationship managers in banks. This is a high conviction idea at a time when market conviction is low. So our attempt is to just time the valuations which are attractive,” says Kalpen Parekh, Deputy CEO, IDFC Mutual Fund.
Empanelled IFAs: 20,000. Around 4,500 active IFAs bring business on a monthly basis to the AMC.
Exit load: It carries a 1 per cent exit load if redeemed within one year from the date of allotment. There is no load charged for switches between its equity schemes and for switches between options of the schemes.
Minimum Subscription: Rs 5,000
Benchmark: BSE 200
RTA: CAMS
Existing Infrastructure Schemes in MF industry: Presently there are 21 (open-ended) infrastructure schemes in the market managing assets worth Rs 8,319.45 crore. The performance of existing schemes during one year and three year period has not been encouraging.
