IDFC Mutual Fund collects over Rs 240 crore through equity NFO

NEW DELHI: IDFC Mutual Fund has garnered over Rs 240 crore through its new fund offer despite sluggish stock markets.

"Equity Opportunity Series 1 saw good response. We have collected over Rs 240 crore. The new fund offer opened on April 9 and closed on April 10," said an IDFC Mutual Fund spokesperson.

This is one of the biggest amounts raised by a close ended scheme in recent times, the spokesperson added.

According to industry estimates, there over 25 close- ended schemes that focus on equity assets.

To be benchmarked against BSE-500 index, Equity Opportunity Series 1 fund will be managed by Kenneth Andrade.

Head of Investments at IDFC Asset Management Company, Andrade said the fund will have a diversified portfolio. The portfolio in the initial stages will focus on small companies by market capitalisation, he added.

The unit capital of closed-ended funds is fixed and sells a specific number of units. Unlike in open-ended funds, investors cannot buy the units of a closed-ended fund after its NFO period is over.

IDFC Asset Management Company Ltd was established in 2000 and is already one of the largest mutual fund houses in India.