Monday, February 14, 2011

IDFC Mutual Fund Launches IDFC Infrastructure Fund

NFO Period from 14 February to 28 February 2011 

IDFC Mutual Fund has announced the launch of IDFC Infrastructure Fund, an open ended equity scheme. The New Fund Offer (NFO) will be open for subscription from 14 February 2011 till 28 February 2011. The face value of the new issue will be Rs 10 per unit. 

The investment objective of the scheme is to generate long-term capital growth through an active diversified portfolio of predominantly equity and equity related instruments of companies that are participating in and benefiting from growth in Indian infrastructure and infrastructural related activities. 

The fund is designed to be 'true-to-label'. It defines infrastructure using benchmark definitions of RBI and World Bank. 

At the launch of IDFC Infrastructure Fund Mr. Kenneth Andrade, Head - Investments, IDFC Mutual Fund said, "IDFC infra fund has been launched at a time when we believe that valuations in this sector are very attractive and there may be huge investment appreciation ahead." 

IDFC Infrastructure Fund would allocate 80% to 100% of assets in equities & equity related securities in companies engaged in infrastructural and infrastructural related activities with high risk profile. On the flip side it would allocate upto 20% of assets in debt and money market instruments with low to medium risk profile. 

Under the scheme, investors may choose either the Growth Option or the Dividend Option
The minimum investment amount during the NFO is Rs. 5,000 and the fund manager of the scheme is Mr. Kenneth Andrade. 

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

The exit load charge will be 1% if redeemed within 365 days from the date of allotment. No load shall be applicable for switches between equity schemes of IDFC Mutual Fund and for switches between options of the schemes. 

Benchmark index for the scheme is BSE 200.