Monday, May 20, 2024

IDFC Multi Cap Fund an Effective Investment Opportunity

IDFC Mutual Fund announced the launch of IDFC Multi Cap Fund, an open-ended equity scheme aiming to create wealth over the long term by investing in a portfolio of large cap, mid cap and small cap equity and equity-related securities.The fund will also aim to benefit from allocationsto tactical investment opportunities like IPOs, new-age businesses, international equities andtactical cash positions.This diversified investment blend is well-positioned to provide the combined benefit of higher growth potential from mid and small cap stocks, while aiming to reduce volatility through investments in large cap stocks. The New Fund Offer will open for subscription on Friday, November 12, 2021 and close on Friday, November 26, 2021.

Highlighting the rationale of launching the IDFC Multi Cap Fund, Mr. Vishal Kapoor, CEO, IDFC AMC said, “Changing economic and market conditions can lead to different market-cap segments outperforming across different cycles, making it challenging for investors to consistently select the optimal strategy. The IDFC Multi Cap Fund will provide a disciplined, well-balanced approach towards all three market caps segments while also benefiting from tactical allocations. It endeavors to build a portfolio of dependable, high quality companies with a strong financial track record, thereby providing convenient broad-market access to long term lump-sum equity as well as SIP investors.”

A key differentiator of the IDFC Multi Cap Fund is its focus on the benefits of Diversity, Discipline and Dependability in its portfolio strategy. Effectively framed as the ‘3-D Power’ strategy, the Diversity feature highlights that the fund is mandated to invest at least 25% each in large cap, mid cap and small cap, with the flexibility to invest the balance as per the fund manager’s view. The Discipline feature conveys the underlying intent to reduce risk by restricting the maximum allocation to mid-cap and small-cap
stocks, and by limitingthe possibility of fund manager style drift. The Dependability aspect highlights the stock-selection process that will target quality management, focused capital allocation policies, a strong balance sheet and operating cash flows.

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