IDFC Mutual Funds has announced the launch of its open ended income fund called IDFC Credit Opportunities Fund. The NFO opens on February 14, 2017 and closes on February 27, 2017.
In a press release, Vishal Kapoor, CEO, IDFC MF said,“IDFC Credit Opportunities Fund will aim to better segment, the risk-reward trade-off profile in the credit fund space. The fund will look to optimize the higher risk associated with the credit fund category.”
“To manage credit risk, the fund has put in place a strong and rigorous process to evaluate credit risk and monitor the same on a continuous basis. The fund will also emphasize on collaterals/covenants where it believes it is required. Detailed due diligence on fundamental parameters i.e., promoter quality, business risk and financial risk will be performed on all issuers,” said the fund house.
Fund Manager, Arvind Subramanian said, “We would largely select issuers that are either evolving businesses with a strong promoter backing or robust business models with improving financials.”
The minimum application amount for this fund is Rs.5,000. An exit load of 1% is applicable if redeemed/switched out within 365 days from the date of allotment.
As on January 2017, IDFC MF manages AUM of Rs.61,239 crore.
