IDFC Mutual Fund launches 'IDFC Equity Opportunity- Series 2'

IDFC Mutual Fund launches IDFC Equity Opportunity- Series 2, which is a three year close ended equity scheme. The New Fund Offer (NFO) will be open for subscription from Monday, 13th January 2014 and will close on Friday, 24th January 2014. The NFO is priced at Rs. 10 per unit. The company will invest in stocks in BSE 500 index. The fund will not have a capitalization bias and will be diversified across sectors and market caps. The minimum investment amount is INR 5000. On maturity, switch option will be available into all IDFC Open-Ended Schemes.

The investment objective of this scheme is to attain better productivity and profitability. The fund house is of the opinion that, in a consolidating economy, greater focus on capital efficiency can be achieved by utilising the current idle capacity. Better capacity utilisation leads to higher revenues and profit growth will be faster than the revenue growth due to operating leverage across industries.

The scheme offers dividend payout and dividend sweep option and is managed by Ms. Punam Sharma. “The economy is in a consolidation phase and presents some good investment opportunities. We are keen to raise money counter cyclically with the focus on future performance. This is important to ensure that investors have a good investing experience. With Series 2, we intend to create a portfolio of good companies with currently low capacity utilization and hence beneficiaries of operating leverage over the next few quarters.” says Punam Sharma, Director, IDFC AMC.

'IDFC Equity Opportunity- Series 1’ has raised Rs 260 crore in the month of April and has generated return of 20.65%. Looking at the good track record and likely recovery in the economy we recommend investors with good risk appetite to invest in the fund.

IDFC will launch its IDFC Equity Opportunity- Series 3 scheme in February and the period for the NFO will be from 10th February 2014 to 21st February 2014.