IDFC Equity Fund

IDFC Equity Fund is managed by Kenneth Andrade. The scheme aims to generate capital appreciation through investing in equities by adopting the mode of applying for Initial Public Offerings and secondary market offerings through the prospectus route. This fund’s performance has trailed close to category average in most periods. If you have invested in this fund, watch its performance closely.  

Where does IDFC Equity Fund invest your money ?

IDFC Equity Fund is a large capfund which means most of your money will be invested in large companies.  Large cap companies tend to be stable compared to mid cap and small cap companies. It has 100% exposure to large size companies.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not suitable for what?
  • Creating wealth 
  • Short term needs
  • Lifestyle needs
How has IDFC Equity Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in June 2006, your value of investments would be around Rs 1.75 lakhs. If you had invested Rs 1 lakh five years back it would have sadly been Rs 1.16 lakhs. The performance has been not better or similar to other large cap mutual funds. 

Assume you had invested Rs 10,000 every month in IDFC Equity Fund through SIP for the past 5 years today you would have around Rs 7.78 lakhs.

How will IDFC Equity Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to de well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

 

What are the charges applicable?

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of IDFC Equity Fund is 2.77%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.    

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year. 

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