HOME         WEBSITE         SUBSCRIBE           E-GREETINGS   
                               

Monday, May 18, 2009

IDFC MF files offer document with Sebi

Plans to launch IDFC Nifty Fund

Name of Fund: IDFC Nifty Fund

Scheme: An open ended index linked equity scheme.

Investment Objective: The investment objective of the scheme is to replicate the S&P CNX Nifty index by investing in securities of the CNX Nifty Index in the same proportion/ weightage.

Investment Options: There will be three plans viz. Retail Plan A, Retail Plan B and Pension Plan.

Retail Plan A & Retail Plan B: A plan, which will receive subscriptions from all categories of investors other than subscriptions received from NPA trusts registered under PFRDA guidelines.

Pension Plan: A Plan, which will receive subscriptions only from NPS Trusts registered under PFRDA guidelines. In case the investor does not select any particular plan, Retail Plan A shall be the default plan.

There are dividend and growth option under the plans. Growth plan is suitable for investors who are not looking for dividend. Dividend option is suitable for investors seeking income through dividend declared by the scheme Reinvestment facility is also available Under this option, the Fund will endeavor to declare dividends from time to time. The dividend shall be dependent on the availability of distributable surplus.

Asset Allocation: The fund will invest upto 80%-100% in Securities covered by the Nifty and 0-20% in Debt & Money Market instruments (Investments in Derivatives – upto 100%. Investments in Securities Lending – upto 35% of the net assets of the scheme. Investments in Foreign instruments/securities – up to 35% of the net assets of the scheme).

The net assets of the scheme/Plan will be invested predominantly in stocks constituting the S&P CNX Nifty and / or in exchange traded derivatives on the S&P CNX Nifty. This would be done by investing in almost all the stocks comprising the S&P CNX Nifty Index in approximately the same weightage that they represent in the S&P CNX Nifty Index and / or investing in derivatives including futures contracts and options contracts on the S&P CNX Nifty Index. A small portion of the net assets will be invested in money market instruments permitted by SEBI / RBI including call money market or in alternative investment for the call money market as may be provided by the RBI, to meet the liquidity requirements of the scheme/plan.

NFO price: Rs 10 per unit

Load structure:

For Retail Plan A:

Entry load during the NFO period and on going offer period (for purchases/ switch ins):

Investment of less than Rs 5 crore (including by way of SIP/STP): 2.25%

Investment of Rs 5 crore (including by way of SIP/STP):Nil

Investment by an FOF (irrespective of the amount of purchase): Nil

As a result of Dividend Re-investment: Nil

No entry load shall be chargeable in case of switches from other equity schemes of the Mutual Fund (other than from IDFC Arbitrage Fund and IDFC Arbitrage Plus Fund)

Exit load for redemption/ switch outs:

Within 1 year from the date of subscription applying first in first out basis, (including investments through SIP/STP): 1%

After 1 year from the date of subscription applying first in first out basis, (including investments through SIP/STP): Nil

By a FOF (irrespective of the amount of Redemption): Nil

Retail Plan B:

Entry Load: Nil

Exit load for redemption/ switch outs:

Within 1 year from the date of subscription applying first in first out basis, (including investments through SIP/STP): 1%

After 1 year from the date of subscription applying first in first out basis, (including investments through SIP/STP): Nil

By a FOF (irrespective of the amount of Redemption): Nil

No Entry / Exit Loads / CDSC will be chargeable in case of switches made between different options of the Scheme.

Pension Plan:

Entry Load: Nil

Exit Load: Nil

Minimum Investment Amount: The minimum application amount is Rs. 500 and in multiple of Re. 1 thereafter in all the Plans under the scheme(s).

Minimum Target amount: The Fund seeks to collect a minimum subscription amount of Rs.1 crore.

Benchmark Index: The scheme's performance will be benchmarked against S&P CNX Nifty.

Fund Managers: Punam Sharma is the fund manager for the scheme.

Posted by

Blog Archive

____________________________________________________________________________________________

Disclaimer - All investments in Mutual Funds and securities are subject to market risks and uncertainty of dividend distributions and the NAV of schemes may go up or down depending upon factors and forces affecting securities markets generally. The past performance of the schemes is not necessarily indicative of the future performance and may not necessarily provide a basis for comparison with other investments. Investors are advised to go through the respective offer documents before making any investment decisions. Prospective client(s) are advised to go through all comparable products in offer before taking any investment decisions. Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the fund will be achieved. Information gathered & material used in this document is believed to be from reliable sources. Decisions based on the information provided on this newsletter/document are for your own account and risk.


In the preparation of the material contained in this document, Varun Vaid has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the Varun Vaid and which may have been made available to Varun Vaid. Information gathered & material used in this document is believed to be from reliable sources. Varun Vaid however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Varun Vaid does not in any way through this material solicit any offer for purchase, sale or any financial transaction/commodities/products of any financial instrument dealt in this material. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice.


Varun Vaid, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. Any person subscribing to or investigating in any product/financial instruments should do soon the basis of and after verifying the terms attached to such product/financial instrument. Financial products and instruments are subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. Please note that past performance of the financial products and instruments does not necessarily indicate the future prospects and performance there of. Such past performance may or may not be sustained in future. Varun Vaid, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation in the financial instruments/products/commodities discussed here in or act as advisor or lender / borrower in respect of such securities/financial instruments/products/commodities or have other potential conflict of interest with respect to any recommendation and related information and opinions. The said person may have acted upon and/or in a manner contradictory with the information contained here. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of Varun Vaid. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else.


Varun Vaid also does not take any responsibility for the contents of the advertisements published. Readers are advised to verify the contents on their own before acting there upon.


Published Credits goes to following sources & all the mentioned sources as footer below the published material- Bloomberg, Valueresearch Online, Capital Market, Navindia, Franklin Templeton, Kitco, SBI AMC, LIC AMC, JM Financial AMC, HDFC AMC, The Hindu, Business Line, Personal FN, Economic Times, Reuters, Outlook Money, Business Standard, Times of India etc.