IDFC MF launches new close ended equity scheme

Tags: News
IDFC Mutual Fund has launched a new fund 'IDFC Equity Opportunity Series 3', which is a 21-month close-ended diversified equity fund.

The new fund offer, which opened for subscription from February 10, will close on February 24, a company release said.

As per the fund house, the new scheme aims to create a portfolio of high dividend paying companies with average dividend yield of the portfolio at least 50 per cent higher than the benchmark dividend yield.

Giving the rationale behind launching of the new scheme, it said, "The macroeconomic construct for the country has stagnated in the last couple of years... The RoEs and project IRR's today are sub-optimal to embark on a fresh capex cycle. In such an environment there is opportunity to create a portfolio that will efficiently utilize their cash flows by sharing it with shareholders through dividends."

The new scheme will invest in companies that generate good free cash flows, which will be utilized to pay high dividends, it added.

"This is the third investment idea in our series of portfolios offered in this year through Equity Opportunities Funds. The overall consolidating environment is giving us an opportunity to build equity portfolios counter cyclically," Chief Executive Officer of IDFC MF, Kalpen Parekh said.

IDFC MF has an average assets under management of Rs 41,247.7 crore by the end of December quarter.

EDITORIAL OF THE DAY

  • Legalising betting on cricket will raise tax collections for cash-strapped government

    Last month, Justice RM Lodha committee on cricket reforms made several groundbreaking recommendations to the Supreme Court.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Arun Nigavekar

Tablets, memory cards for educatioNext

The Commonwealth he­ads of government mee­ting held in Malta last ...

Rajgopal Nidamboor

Try to awaken the archaeologist within

Our mind is far ahead of René Descartes’ famous maxim, ...

Dharmendra Khandal

Urbanisation is costing us our wildlife

The road transport and highways minister Nitin Gadkari aims to ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture