From fund allocation to tactical will also try to take advantage of Investment Opportunities such as IPOs, new-age businesses, international equities and strategic cash positions.
The fund house says that this diversified investment mix is well positioned to provide the combined benefit of high growth potential from mid and small cap stocks, while aiming to reduce volatility through investments in large cap stocks.
The New Fund Offer will open for subscription on November 12 and close on November 26.
“Changing economic and market conditions can cause different market-cap segments to outperform in different cycles, making it challenging for investors to consistently select the optimal strategy. IDFC Multi Cap Fund will provide a disciplined, well-balanced approach to all three market cap segments, while also benefiting from strategic allocation,” said Vishal Kapoor, CEO, IDFC AMC.
“It strives to build a portfolio of dependable, high quality companies with a strong financial track record, thereby providing convenient broad market access along with long-term outright equities. sip investors,” said Kapoor.
According to the press release, the fund will be managed on the basis of ‘3-D Power’ strategy.
The ‘Diversity’ feature highlights that it is mandatory for the fund to invest at least 25% each in large cap, mid cap and small cap, with the flexibility to invest the remaining amount as per the opinion of the fund manager .
The ‘Discipline’ feature conveys the underlying intention to reduce risk by limiting the maximum allocation to mid-cap and small-cap stocks and limiting the possibility of fund manager style drifts.
The ‘dependency’ aspect highlights the stock-selection process that will target quality management, focused capital allocation policies, a strong balance sheet and operating cash flows.
“Our research indicates that a rolling 5-year systematic investment plan (SIP) posted an average annual return of 12% in the multicap index (Nifty 500 Multicap 50:25:25 Index) studied over the past 11 years “Daylin Pinto, Fund Manager, IDFC Multi Cap Fund said.
“In the case of lumpsum investments for 5 years, the entry time did not restrict the return potential as the multi-cap strategy cumulatively yielded an attractive average return of 74.8%, even if the investment was made at the highest level each year Pinto said.
“IDFC Multi Cap Fund is designed to maintain a large allocation across all market caps combined with select strategic disciplines. Our investment strategy demonstrates that investors can take advantage of growth opportunities across various market caps, aimed at The aim is to achieve profits with optimum returns for the long term by investing in the market through investments in financially stable companies with strong management.”