New Delhi: IDFC Mutual Fund has announced the launch of an open-ended multi-cap fund that will invest in large-cap, mid-cap and small-cap equities and equity-related securities. The New Fund Offer (NFO) for IDFC Multi Cap Fund will open for subscription on November 12 and close on November 26.
As per rules, a multi-cap fund should have a minimum of 25% in large-cap (defined as the first 100 stocks by market cap), 25% in mid-cap (101st to 250th stock by market cap) and 25% in mid-cap needed. Small-cap (251st stock ahead).
According to the asset management company (AMC), the scheme will aim to benefit from the allocation of strategic investment opportunities such as initial public offerings (IPOs), new-age businesses, international equities and strategic liquidity positions.
Strategic allocation will be up to 20% of the total assets.
“This diversified investment mix is well positioned to provide the combined benefit of high growth potential from mid- and small-cap stocks, while reducing volatility through investments in large-cap stocks,” the fund house said in a note. is the goal.”
The scheme will be managed by Dayalin Pinto (equity part), Harshal Joshi (debt part) and Viraj Kulkarni (foreign part).
The minimum investment amount during the NFO period will be ₹5,000 and thereafter in multiples of Rs. If investors redeem or switch out within one year from the date of allotment, there will be an exit load of 1%, and zero thereafter.
IDFC Multi Cap Fund will be benchmarked with Nifty 500 Multicap 50:25:25 Total Return Index (TRI).
“Our research indicates that a five-year systematic investment plan (SIP) has posted an average annual return of 12% among the multi-cap indices (Nifty 500 Multicap 50:25:25 Index) studied over the past 11 years. Five In the case of lump-sum investments for the year, the entry time did not restrict the return potential as the multi-cap strategy cumulatively yielded an attractive average return of 74.8%, even though the investment was made at the highest level each year.” Pinto said.
As per AMC, IDFC Multi Cap Fund is designed to maintain a large allocation across all market caps combined with select strategic disciplines.
IDFC Asset Management Company was liquidated ₹1.27 trillion in average assets under management (AUM) as of October.
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