Incorporated in 1997, IDFC or Infrastructure Development Finance Company is one of the major infrastructure finance players in India. IDFC provides finance and advisory services in the domains of alternative asset management (private equity, infrastructure, real estate), public market asset management (mutual fund), infrastructure projects and corporate investment banking.
IDFC Mutual Fund
Acquired in 2008, IDFC Mutual Fund falls under the aegis of IDFC Asset Management Company Ltd (IDFC AMC) which manages products for both retail and institutional investors. IDFC AMC attempts to ensure growth of assets through several measures including directing corporate and private savings into equity and debt markets.
Types of IDFC Mutual Funds
IDFC broadly offers three types of funds as follows:
- Equity Funds
- Hybrid Funds
- Debt Funds
- Equity Funds
Ideal for a long-term investment, equity funds involve large investments in stocks, which typically offer high returns with a moderate to high degree of risk.
- Hybrid Funds
You can invest in both equity and fixed income based securities known as hybrid funds which typically reduce risk and offer stable returns.
- Debt Funds
Under debt or income funds, investments are made in bonds, government securities, debentures, commercial papers and certificates of deposit among others. Debt funds provide a relatively stable income to investors minimizing the amount of risk.
Why choose IDFC Mutual Funds?
- It is a given that taxes eat into your income. You could save your funds in PPF or NSC and claim tax breaks but it would only result in low to moderate returns. Smart investors ensure that they invest in financial instruments which not only help save taxes but also provide some good returns as in Equity Linked Savings Schemes (ELSS).
- IDFC tax advantage (ELSS) helps investors save up to Rs. 1,50,000 on taxes. What’s more, it also provides stable returns. Investments made in ELSS plans are entitled for tax deduction under section 80C of the Income Tax Act.
- IDFC offers a user-friendly online transaction process which helps investors track, switch or redeem their investment without any hassles.
- Mutual funds reduce risk owing to diversification. Investors can, therefore, invest in large, professionally managed portfolios. The portfolio manager helps in avoiding errors usually made by amateur investors.
- Price movements of mutual funds are more predictable compared to individual stocks.
- One of the factors which works to the advantage of investors is that a fund’s performance is fully disclosed.
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News About IDFC Mutual Fund
SARE Homes has a new partner in the form of IDFC
Infrastructure Development Finance Company (IDFC) and SARE Homes to join together to raise $ 250 million fund, part of this deal is the IDFC will invest in the projects while SARE will manage, maintain, and monitor the projects.SARE will get a management fee for all the projects they monitor. This new offshore fund will invest in residential projects in top markets. Private Equity firms plan to raise $3 billion from investors offshore in this fiscal years.
25th September 2015
IDFC Dynamic Bond Fund a good pick based on returns
Returns from the IDFC Dynamic Bond Fund make it a good pick as far as dynamic funds go. The fund posted above average returns over a 3 - 5 year period. Management of the fund is also noteworthy. Actively managed, debt durations were suitably modified in response to interest rate movements.This was evinced by the impressive returns posted in 2014 at 15.9% which beat the average returns from its category by 3% by riding the bond rally. Asset allocation targets G-secs primarily.
Where interest rate movements are hard to predict, well-managed dynamic funds are good bets as fund managers switch between short and long-term debt.
10th September 2015