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Monday, January 04, 2010

IDFC Asset Allocation Fund of Funds Floats On

NFO Period from 4 January to 25 January 2010 

IDFC Mutual Fund has launched a new fund named as IDFC Asset Allocation Fund of Funds, an open ended fund of funds scheme. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue is open for subscription from 4 January 2010 and closes on 25 January 2010.

The primary objective of the scheme is to generate capital appreciation through investment in different mutual fund schemes primarily local funds based on a defined asset allocation model.

The scheme will offer 3 different plans – Conservative Asset Allocation plan (Conservative AA Plan), Moderate Asset Allocation plan (Moderate AA Plan) and Aggressive Asset Allocation plan (Aggressive AA Plan) that will offer 3 different risk profiles for investors. Conservative AA Plan will target the lowest risk profile followed by Moderate AA Plan. Aggressive AA will be the highest risk profile asset allocation.

The scheme offers dividend and growth option. Dividend option offers dividend payout and reinvestment facility.

Conservative AA Plan will allocate 10% to 15% of assets in equity funds, 45% to 50% in debt funds & liquid fund with low to medium risk profile. It would allocate up-to 15% of assets in money market securities with low risk profile.

Moderate AA Plan will allocate 25% to 30% of assets in equity funds with medium risk profile, 60% to 70% in debt funds with medium to high risk profile, up-to 5% in liquid fund and 5% to 10% in Alternative with low to medium risk profile. It would allocate up-to 15% of assets in money market securities with low risk profile.
Aggressive AA Plan will allocate 45% to 50% of assets in equity funds with high risk profile, 35% to 45% in debt funds with medium risk profile, up-to 5% in liquid fund and 10% to 15% in Alternative with low to medium risk profile. It would allocate up-to 15% of assets in money market securities with low risk profile.

The minimum investment amount in case of initial purchase is Rs 5,000 and in multiples of Re 1 and in case of switches shall be Rs 5000 and in multiples of Re 0.01.

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 1 crore under the scheme during the NFO period.

Load Structure (all plans): There shall be no entry load in the scheme. Exit load charge will be 1% of the NAV shall be applicable if investors who redeem / switch out such investments within 365 days from the date of subscription applying First in First Out basis, (including investments through SIP/STP).

CRISIL MIP Blended Index will be the benchmark for the Conservative AA plan and Moderate AA plan.

CRISIL Balanced Index will be the benchmark for the Aggressive AA plan.

Ashwin Patni will be the fund manager for the scheme.
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