IDFC Mutual Fund has launched an open-end equity fund - IDFC Strategic (50-50) Equity Fund, which opens for initial subscription on August 28.
Half of the fund will be a diversified equity fund and half will be an opportunistic sector fund. The fund aims to be ahead of the curve in identifying a sector with depth which is core part of the Indian economy with an investment time frame of 1-2 years. The structure of the fund will allow it to take concentrated positions in companies in a sector. The fund may also invest in debt and money market instruments.
The fund with half of its equity allocation managed as a diversified equity fund will provide stability while the rest of the portfolio can be more volatile or an out of favour market segment. This will be a relatively aggressive equity fund comparable to the opportunity funds.
NFO Opens: August 28, 2008
NFO Closes: September 18, 2008
Type: Open-Ended Equity Scheme
Benchmark: S&P CNX Nifty Index
Fund Manager: Mr. Kenneth Andrade
Entry Load: For investment less than Rs 5 Crore - 2.25 per cent
For investment above Rs 5 Crore - Nil
Exit load: For investment below Rs 5 crore - 1 per cent will be charged if redeemed within one year of the date of purchase.