IDFC Mutual Fund has announced the launch of its IDFC Capital Protection Oriented Fund Series-1 which is a three year close ended fund.
The fund would invest up to 100 per cent in debt securities and money market instruments while it would also invest up to 16 per cent in equity and equity related instruments.
The fund would initially deploy at least 84 per cent of the funds collection during the New Fund Offer (NFO) period in debt securities and money market instruments with an intention to protect the principal capital at the time of maturity of the plan.
This is the 12th capital protection fund in the entire mutual fund industry while the first in the IDFC fund house family.
In the words of Kenneth Andrade CIO, IDFC Mutual Fund, “Through this fund we aim to provide an attractive investment solution to the conservative investors in India who have over 46 lakh crores invested in Fixed Deposits. This fund offers an investor twin benefits of making their money grow inline with inflation while ensuring that their capital remains protected”.
The fund has been benchmarked against CRISIL MIP Blended Index. The fund would be managed by Ashwin Patni who holds B.E and PGDM degree from IIM, Calcutta. He holds over six years experience in wealth management, structured Finance, credit and market groups and business consulting. He also jointly manages IDFC Arbitrage fund and IDFC Arbitrage Plus Fund.
The Minimum application amount is Rs 5,000 and the fund offers both growth and dividend options.
The New Fund Offer (NFO) period started on February 24, 2010 and would end on March 24, 2010. No exit load would be applicable.