IDBI Mutual Fund launched new fund offer IDBI Prudence Fund, a open ended scheme. The NFO Opens for subscription on 03 Oct 2016 & closes on 17 Oct 2016. No entry load will be applicable for the scheme. Offer of units of Rs. 10 each (at par) during the NFO Period and continuous offer for Unit at NAV base prices.
Cheque Details : Cheque should be drawn in the name of the Scheme and PAN of the applicant should be written in the Cheque.
e. g. ” IDBI Prudence Fund – XXXXXX (PAN) “
e.g. ” IDBI Prudence Fund – Investor Name ” ( for non pan holder)
- The Investment objective of the scheme would be to generate opportunities for capital appreciation along with income by investing in a diversify basket of equity and equity related instrument, debt and money market instruments.
|Equity and Equity Related Instruments||35%||60%||High|
|Equity Arbitrage Exposure||5%||10%||Low to Medium|
|Debt Instruments and Money Market Instruments||30%||60%||Low to Medium|
To achieve the investment objective, the Scheme will actively manage both equity and debt components. Debt exposure would be actively manage from both credit and interest rate risk perspectives with focus on accruals and liquidity of investments.
Investment in debt and money market instruments shall be limited to instruments with rating of A1+/AA+ and above while investing.
IDBI Prudence Fund scheme will invest in equity instrument without and sector/style bias with due consideration given to liquidity of investments. Equity investments will be limited to companies that are constituents of the S&P BSE 500 Index universe with total market cap of at least Rs. 2500 Cr while investing.
These Companies will be shortlisted on the basis of their superior growth potential and likelihood to be long term wealth creators. The scheme will adopt bottom-up stock picking approach to identify companies based on various drivers including earnings growth and quality, competitive advantage, pricing power, robust business model, liquidity, established or emergent leadership position, management quality current valuation and long term growth potential.
As per the extent income tax provisions for a Balance Fund to be recognized as an equity oriented scheme (more than 65% in Equity)
|Equity Scheme – IDBI Prudence Fund||Resident Investors|
|Dividend Distribution Tax||NIL|
|Capital Gain – Long Term||NIL|
|Capital Gain – Short Term (Unit held for less than 12 months)||15% (plus applicable surcharge & cess)|
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