IDFC Mutual Fund opens Focused Equity Fund for lumpsum investment

IDFC Mutual Fund announced the removal of restriction of Rs 2 lakh per transaction in IDFC Focused Equity Fund, effective from May 17. The IDFC Focused Equity Fund is an open-ended equity scheme that invest in maximum 30 stocks with the flexibility to invest across sectors and across market cap.

Back in 2017, when the fund witnessed large flows within a short period, IDFC AMC had decided to put in a restriction of Rs 2 lakh per transaction to moderate the flows and maintain the investment style. Post re-categorisation of funds late last year, given the well-defined market cap buckets, we see ample opportunities in the mid & small cap space as well as the large cap space, the fund house said.

Vishal Kapoor, CEO, IDFC AMC, said, “Given the sharp correction witnessed in the broad market, coupled with future growth expectations, we believe that the valuation in this space has become reasonable. In addition, the fund flows have moderated as well, reducing the deployment risk and impact cost. Therefore, it provides new as well as existing investors an opportunity to allocate to this focused strategy.”


Sumit Agrawal, fund manager, IDFC Focused Equity Fund, said, “The fund has a concentrated multi-cap portfolio with a maximum of 30 stocks by design. It has the flexibility to invest across market cap and sectors. The portfolio comprises of a mix of core and tactical ideas with a focus on growth-oriented companies. Given a concentrated offering, IDFC Focused Equity Fund could be a key choice for investors who prefer allocation driven portfolio as well as have relatively higher temperament for market volatility.”