Mutual Fund News : IDFC Mutual Fund Introduces IDFC Nifty200 Momentum 30 Index Fund

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IDFC Mutual Fund has Introduced a new scheme – IDFC Nifty200 Momentum 30 Index Fund

It is an open-ended scheme tracking Nifty200 Momentum30 Index

Accordingly, the investment objective of the Scheme is to replicate the Nifty200 Momentum 30 index by investing in securities of the Nifty200 Momentum 30 Index in the same proportion / weightage with an aim to provide returns before expenses that closely correspond to the total return of Nifty200 Momentum 30 Index, subject to tracking errors.

However, there is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee any returns.

Under normal circumstances, IDFC Nifty200 Momentum 30 Index Fund will hold an allocation of 95% to 100% of its assets in Securities belonging to the Nifty200 Momentum 30 Index and 0% to 5% of its assets in Debt & Money Market instruments.

As per the Scheme Information Document, the Scheme will be managed passively with investments in stocks in a proportion to the weights of these stocks in the Nifty200 Momentum 30 Index. The investment strategy would revolve around reducing the tracking error to the least possible through rebalancing of the portfolio, considering the change in weights of stocks in the index as well as the incremental collections/redemptions from the Scheme.

IDFC Nifty200 Momentum 30 Index Fund’s performance will be benchmarked against Nifty200 Momentum 30 TRI

The scheme will be managed by Mr. Nemish Seth

The NFO opens for subscription on August 19, 2022 and closes on August 26, 2022. The scheme will reopen for continuous sale and repurchase Within 5 Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of any amount thereafter.

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.

[Read: IDFC Nifty200 Momentum 30 Index Fund: Will Momentum Investing Boost Your Portfolio Returns?]