IDFC Imperial Equity Fund

IDFC Imperial Equity Fund is being managed by Ankur Arora since Oct 2012. The fund’s performance has been largely unstable. It has generated better returns than the average return of funds in its category but has also fell miserably in others. Existing investors can exit the fund now. New investors might rather skip this one for now.

Where does IDFC Imperial Equity Fund invest your money?

IDFC Imperial Equity Fund is a largefund which means most of your money will be invested in large companies. And just to give kicker returns the fund has some exposure in mid cap companies as well. Large cap companies tend to be stable compared to mid cap and small cap companies. It has 96.41% exposure to large size companies and 3.59% to mid 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 Imperial Equity Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched Mar 2006, your value of investments would be around Rs 1.92 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.21 lakhs. The performance has been similar to other large cap mutual funds. The fund has been giving around 5% returns to those who have stayed invested for 3.93 years.

Assume you had invested Rs 10,000 every month in IDFC Imperial Equity Fund through SIP for the past 5 years today you would have around Rs 7.16 lakhs.

How will IDFC Imperial 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 do 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%. 

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
Not 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 twice 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 Imperial Equity Fund is 2.82%. 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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