IDFC Mutual Fund has launched an open-end Equity Linked Saving Scheme, IDFC Tax Advantage Fund.
The fund seeks growth from a diversified portfolio of growth stocks at reasonable value. The fund can be fully in equity and can be upto 20 per cent exposure in debt and money market instruments.
Mr. Ajay Bodke is the designated fund manager. He has over nine years of experience as a senior equity fund manager at SBI Mutual Fund where he was responsible for Magnum Equity, Magnum Global and Magnum Equity Linked Scheme (MELS95). Currently he manages two other funds -- IDFC Classic Equity Fund and IDFC Tax Saver Fund, the closed-end fund.
IDFC has a limited track record for its equity funds. The other two funds managed by the fund manager are largely portfolio of blue-chips with an average performance relative to other funds. This new fund also has a similar stated strategy. The closed-end tax saving fund, IDFC Tax Saver Fund is down 32 per cent since its launch in February 2007. This is little more than the average equity fund and the broad Index. The other fund IDFC Classic has done little better than the average and the broad Index.
Suitability & Recommendation
IDFC Mutual manages some impressive and some average equity funds. But all its equity funds have a brief history. This fund is likely to be large-cap portfolio of blue-chips. But investors can choice from 30 other open-end tax-saving funds, some of them with compelling track record and well defined portfolio characteristics.
NFO Opens: December 01, 2008
NFO Closes: December 17, 2008
Options: Growth & Dividend (Payout & Reinvestment)
Benchmark: BSE 200
Fund Manager: Mr. Ajay Bodke
Entry Load: 2.25 per cent, for investment of less than Rs 5 crore. Nil, for investment of Rs5 crore or more.
Exit Load: Nil
Minimum Application: Rs 500
Lock In Period: 3 Years