IDBI India Top 100 Equity Fund – Should you Invest?

IDBI India Top 100 Equity FundIDBI Mutual Fund has launched its second equity fund – IDBI India Top 100 Equity Fund which has opened for subscription on April 25, 2012.

Investment Objective:

To provide investors with opportunities for long-term growth in capital through active management of a diversified basket of equity stocks, debt and money market instruments. The investment universe of the scheme will be restricted to equity stocks and equity related instruments of companies that are constituents of the S&P CNX Nifty Index (Nifty 50) and the CNX Nifty Junior Indices comprising a total of 100 stocks. These two indices are collectively referred to as the CNX 100 Index. The equity portfolio will be well-diversified and actively managed to realize the Scheme objective.

The fund seeks to collect a minimum subscription amount of Rs 10 crore under the scheme during the NFO period.

Allocation of funds:

The asset allocation pattern for the scheme is detailed in the table below:

Instrument  Indicative Allocation

(% of total assets)

Risk Profile 
Minimum Maximum 
Equities and equity related instruments of constituents of the CNX 100 Index 70% 100% High
Debt and Money market instruments 0% 30% Low to Medium

Other Details:

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NFO Open Date April 25, 2012
NFO Closes on May 9, 2012
Fund Manager V. Balasubramanian.
Benchmark CNX 100 Index
Face Value Rs. 10/- for cash at par.
Entry Load Not Applicable.
Exit Load For NFO & Ongoing basis: 1% for exit (repurchase/switch-out/SWP) on or before 1 year from the date of allotment.

For SIP: 1% for exit (repurchase/switch-out) on or before 1 year from the date of allotment of each installment of withdrawal.

Plan & Options Growth

Dividend (Payout Option, Reinvestment Option, Sweep)

Minimum Investment Rs. 5000 and in multiples of Re. 1/- thereafter.
Additional Purchase Rs. 1000 and in multiples of Re. 1/- thereafter.
Systematic Investment Plan (SIP) Monthly Option: Rs. 500 and in multiples of Re. 1/- thereafter, per month, for atleast 12 months or Rs. 1000 and in multiples of Re. 1/- thereafter, per month, for a minimum period of six months.

Quarterly Option: Rs. 1500 and in multiples of Re. 1/- thereafter, per quarter, for a minimum period of four quarters.

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Should you invest?

The answer is No! This is a NFO from a new fund house which is still to prove its expertise in equity fund management. And the fund on offer has nothing new to offer. You would be better off investing in existing equity funds.

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