IDBI Mutual Fund has launched a new open-ended equity scheme called IDBI Long Term Value Fund. The NFO will be available for subscription from July 30, 2018, to August 13, 2018.
The main aim of the IDBI Long Term Value Fund is to generate long-term capital appreciation in conjunction with regular income by investing primarily in equity and equity-related securities. The scheme follows a value investment strategy.
The new open-ended equity scheme of IDBI MF offers both Regular Plan and Direct Plan with Growth as well as Dividend Options. The Dividend Option offers three choices – Facility for Payout, Reinvestment, and Sweep of Dividend.
The NFO (New Fund Offer) price for the new IDBI Mutual Fund scheme is 10 Rupees per unit. The minimum application amount is 5000 Rupees for the first investment and in multiples of one Rupee thereafter. The minimum additional amount is 1000 Rupees and in multiples of one Rupee thereafter.
The new scheme will allocate 65 percent to 100 percent of assets in equity and equity-related securities with the high-risk profile. The scheme will allot 35 percent of assets in debt and money market securities including CBLO with low to medium risk profile. It will invest about 10 percent of assets in Units issued by REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) with medium to high-risk profile.
The scheme has no exit load if units are redeemed or switched out within 12 months (with limits) and after 12 months from the date of allocation. The scheme has an exit load of 1 percent of the applicable NAV, if the units are redeemed or switched out (in excess of the limit) within 12 months from the date of allocation.
The performance of the new open-ended equity scheme is benchmarked under the S&P BSE 500- Total Returns Index (TRI).
Uma Venkatraman will be the fund manager of the IDBI Long Term Value Fund scheme.
The new IDBI Mutual Fund scheme aims to collect a minimum target amount of 10 crore Rupees during the NFO period, according to KJMC.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]