IDFC Mutual Fund launches new close-ended fund

Mumbai: IDFC Mutual Fund today launched 'IDFC Equity Opportunity Series-2', a close-ended fund that aims to provide higher returns to investors through leveraging the benefits of the economic cycle.

The new offer, which will be opened for subscription from January 13, will close on January 24.

"The economy is in a consolidation phase and presents some good investment opportunities. In this new scheme, we intend to create a portfolio of good companies with currently low capacity utilisation and hence beneficiaries of operating leverage over the next few quarters," IDFC AMC Director Punam Sharma told reporters here.

As per the fund house, in a consolidating economy, greater focus on capital efficiency can be achieved by utilising idle capacity, which will lead to better productivity and profitability and the fund house aims to tap those opportunities.

Sharma also said the new fund will not have a capitalisation bias and will be diversified across sectors and market caps.

IDFC MF, which had launched series 1 of this scheme in April, was able to raise Rs 260 crore.

The fund house also informed that it would launch series-3 of the scheme in February with a dividend yield strategy.

IDFC MF, promoted by financial services firm IDFC, had an average assets under management stood at Rs 42,248 crore by the end of the December quarter.