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Tuesday, July 28, 2009

IDFC Monthly Income Plan waits for Sebi's approval

Exposure will be in debt oriented Mutual Fund schemes

IDFC Mutual Fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch IDFC Monthly Income Plan, an open ended Funds of Fund scheme. The New Fund offer price will be Rs 10 per unit.

Details of the Scheme:

Investment Objective: The scheme endeavors to seek to generate regular returns through investment primarily in debt oriented Mutual Fund schemes (such as Income and Liquid funds). The secondary objective of the scheme is to generate long-term capital appreciation by investing a portion of the scheme's assets in equity oriented MF schemes.

Investment Theme: The scheme will be a multi-manager fund of fund that will combine the benefits of asset allocation and manager diversification in a single product. The multi-manager approach is expected to diversify allocation to different managers in order to reduce risk from any individual manager on the performance for the scheme. The fund of fund approach allows the fund manager to participate in funds with different styles within various funds available for investments.

Plans: There are two options: growth and dividend option. Dividend payout and Reinvestment facilities are available under the dividend option.

Asset Allocation: The fund will invest 65-100% of net asset in units of mutual funds investing in debt/liquid/income funds with high risk profile. It may have investment up to 25% in units of mutual funds investing in equity funds with high risk profile. Investment in money market instruments shall be up to 35% with low to medium risk profile. The assets of the Scheme shall be predominantly invested in debt and equity MF schemes.

Load Structure: The scheme may charge no entry load. The scheme will charge exit load of 0.25% of the NAV if investors who redeem / switch out such investments within 3 months from the date of allotment subscription applying First in First Out basis.

Minimum Investment Amount: The minimum application amount will be Rs 5000 and in multiples of Re 1 thereafter.

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

Benchmark Index: The performance of the scheme will be benchmarked against CRISIL MIP Blended Index.

Fund Manager: Arjun Parthasarathy will manage the fund.

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