IDBI Mutual Fund has launched its first actively managed equity fund – the IDBI India Top 100 Equity fund.

Investment Objective
An open-ended growth scheme, the fund will provide investors an opportunity to achieve long-term growth and capital appreciation through active management of a diversified basket of equity stocks, debt and money market securities.

Investment Strategy
The investment universe will be restricted to equity shares of companies that are constituents of the S&P CNX Nifty Index and the CNX Nifty Junior Index, comprising a total of 100 stocks. These two indices are collectively referred to as the CNX 100 Index. The scheme will invest from 70 per cent to 100 per cent of its assets in equity, and up to 30 per cent in debt.

The fund manager will use a combination of top-down & bottom-up approach that will include, amongst other metrics, competitive position, earnings growth, management quality, liquidity, etc, to identify fundamentally sound companies that have long-term growth potential and are available at reasonable prices. The manager will also look to explore short-term trading opportunities that may arise from time to time.

Fund Manager
Mr. V. Balasubramanian will manage this fund. He holds CAIIB and M.Com degrees, and has over 30 years of experience in finance, of which 14 years are in the mutual fund industry & 16 years in banking. Earlier, he has worked with Indian Bank Mutual Fund and Indian Bank. He has been working as a fund manager with IDBI AMC since November 2011.

He also manages IDBI Nifty Index, IDBI Nifty Junior, IDBI MIP (equity), and IDBI Gold ETF. With the exception of equity portion of IDBI MIP, all other equity schemes managed by him are passive ones.

Similar funds Scheme Name    Launch Date    AAUM (Rs Cr)    1-yr Ret (%)    3-yr Ret (%)    5-yr Ret (%) ICICI Prudential Top 200   Sep-94   476.96   -11.02   18.21   4.43 HDFC Top 200   Sep-96   11381.06   -8.90   22.94   12.27 ICICI Prudential Top 100   Jun-98   304.93   -3.76   18.06   6.99 DSPBR Top 100 Equity Reg   Feb-03   3109.35   -2.89   19.89   10.78 Birla Sun Life Top 100   Sep-05   290.11   -7.07   18.86   6.46 Reliance Top 200 Retail   Jul-07   819.01   -7.87   16.48   - LIC Nomura MF Top 100   Dec-07   221.00   -13.04   8.47   - Edelweiss Diversified Growth Equity Top 100 Plan A   May-09   2.90   -3.32   -   - UTI Top 100   May-09   638.86   -7.89   -   - Returns as on 25th April 2012

Fund House
IDBI Bank launched its asset management business in May 2010, almost 17 years after entering the industry for the first time. In January 2003, IDBI Bank had completely exited the mutual fund industry. Since its re-entry, it has focused mostly on passively-managed equity funds and actively-managed debt funds. Its AUM, as on March 31, 2012, stands at Rs. 5482.14 crores.

Basic Details
NFO Opens: April 25, 2012
NFO Closes: May 9, 2012
NFO Price: Rs.10 per unit
Options: Growth & Dividend (with pay out, re-investment & sweep)
Minimum Application Amount for Lump-sum: Rs.5000
Minimum Application Amount for SIP: Rs.500 (Monthly) & Rs.1500 (Quarterly)
Exit Load: 1% if redeemed/switched-out on or before 1 year and NIL on or after 1 year
Benchmark: CNX 100 Index
Fund Manager: V. Balasubramanian