IDBI Mutual Fund
IDBI Mutual Fund
IDBI Mutual Fund is the asset management arm of IDBI Bank Limited, a prominent public sector bank in India. IDBI Asset Management Limited was incorporated under the Companies Act, 1956, on January 25, 2010, and manages the IDBI Mutual Fund, which was formed under the Indian Trusts Act of 1882.
Sponsored by IDBI Bank Ltd., which has a rich legacy spanning over four decades in contributing to India's industrial and economic progress (initially as a Development Financial Institution and later as a commercial bank), IDBI Mutual Fund aims to leverage this strong parentage and wide distribution network. Its objective is to promote financial inclusion by assisting individuals in making informed investment choices through mutual funds, thereby enabling them to benefit from the capital markets.
Fund Managers
IDBI Mutual Fund has a team of dedicated fund managers who oversee its various schemes. Key fund managers associated with IDBI Mutual Fund include:
- Mr. Dikshit Mittal: Fund Manager (known to manage several equity schemes).
- Mr. Karan Doshi: Fund Manager.
- Mr. Jaiprakash Toshniwal: Fund Manager.
- Mr. Pratik Harish Shroff: Fund Manager.
- Mr. Sumit Bhatnagar: Fund Manager.
- Mr. Yogesh Patil: Fund Manager.
- Mr. Alok Ranjan: Fund Manager (particularly for some equity schemes).
- Ms. Uma Venkatraman: Fund Manager.
- Mr. Ashish Mishra: Fund Manager.
The team strives to manage the funds with a professional and disciplined approach, adhering to regulatory frameworks.
Scope and Investment Philosophy
IDBI Mutual Fund's investment philosophy focuses on providing relevant financial solutions to meet the diverse needs and priorities of individual investors. Their approach is characterized by:
- Customer-Centricity: Believing that every individual has specific financial needs (e.g., buying a house, child's education, retirement), they aim to assist investors in selecting schemes that align with these goals.
- Building an Investment Culture: A constant endeavor to inculcate disciplined saving and organized investing habits among investors, helping them build healthy mutual fund portfolios.
- One-Stop Financial Solution: Leveraging IDBI Bank's comprehensive banking and financial services network to offer mutual fund products seamlessly alongside other banking services.
- Research-Based Guidance: Their equity fund selection is often based on a combination of qualitative and quantitative evaluations of the Indian Mutual Fund universe, often supported by reputed research agencies.
- Diversification and Risk Control: Advocating for diversified portfolios across various industries and stocks to control risk.
- Focus on Long-Term Wealth Creation: Emphasizing systematic investment plans (SIPs) to encourage disciplined, long-term wealth accumulation, minimizing the effects of market volatility.
- Transparency and Professional Management: Ensuring that all fund activities are carried out as per regulatory frameworks, with daily NAV declarations and regular portfolio disclosures, managed by proficient fund managers.
Part 2: List of Funds with Brief Explanation
IDBI Mutual Fund offers schemes across various categories to cater to different risk appetites and investment horizons. Here's a list of some of their prominent funds:
Equity Funds:
- IDBI Flexi Cap Fund: An open-ended dynamic equity scheme that invests across large-cap, mid-cap, and small-cap stocks, allowing the fund manager to dynamically allocate based on market opportunities for long-term capital appreciation.
- IDBI India Top 100 Equity Fund (Large Cap Fund): An open-ended equity scheme investing predominantly in large-cap companies, focusing on the top 100 Indian companies by market capitalization for stable growth.
- IDBI Midcap Fund: An open-ended equity scheme predominantly investing in mid-cap stocks, aiming for capital growth from companies that are generally past the early-stage volatility of small caps but still offer significant growth avenues.
- IDBI Small Cap Fund: An open-ended equity scheme predominantly investing in small-cap stocks, targeting high growth opportunities from smaller, emerging companies, typically associated with higher risk and volatility.
- IDBI ELSS Tax Saver Fund: An Equity Linked Savings Scheme (ELSS) that invests predominantly in equities and offers tax benefits under Section 80C of the Income-tax Act, 1961, with a 3-year lock-in period.
- IDBI Focused 30 Equity Fund: A focused equity scheme that invests in a concentrated portfolio of up to 30 large-cap focused companies and balance in debt and money market instruments, aiming for long-term capital appreciation.
- IDBI Value Fund (erstwhile Long Term Value Fund): An open-ended equity scheme that seeks long-term capital appreciation by following a value investment strategy, investing in fundamentally strong companies available at attractive valuations.
- IDBI Banking & Financial Services Fund: A sectoral/thematic equity fund investing predominantly in equity and equity-related instruments of companies engaged in the banking and financial services sector.
- IDBI Dividend Yield Fund: An open-ended equity scheme predominantly investing in dividend-yielding stocks, aiming for long-term capital appreciation and/or dividend distribution.
- IDBI Healthcare Fund: An open-ended equity scheme investing in companies within the Healthcare and Allied sectors.
Debt Funds:
- IDBI Liquid Fund: An open-ended liquid scheme that invests in very short-term money market and debt instruments, providing high liquidity and aiming for stable returns with minimal interest rate risk.
- IDBI Ultra Short Term Fund: An open-ended ultra short duration debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 months to 6 months, suitable for short-term parking of funds.
- IDBI Short Term Bond Fund: An open-ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years.
- IDBI Dynamic Bond Fund: An open-ended dynamic debt scheme investing across duration, aiming to generate income along with attendant liquidity through active management of the portfolio based on interest rate views.
- IDBI Gilt Fund: An open-ended debt gilt scheme that invests predominantly in Government Securities (G-Secs) across maturities, which carry no credit risk but are sensitive to interest rate changes.
- IDBI Credit Risk Fund: An open-ended debt scheme predominantly investing in AA and below rated corporate bonds, aiming for regular income and capital appreciation, but with higher credit risk.
Hybrid Funds:
- IDBI Equity Advantage Fund: An open-ended aggressive hybrid scheme that invests in a combination of equity and debt instruments, aiming for capital appreciation from equity and income generation from debt.
- IDBI Arbitrage Fund: A hybrid arbitrage fund that aims to generate returns by exploiting price differences between the cash and derivatives segments of the equity market, with the balance in debt instruments, offering relatively low risk and tax efficiency.
Index Funds & ETFs:
- IDBI Nifty Index Fund: An open-ended scheme replicating/tracking the Nifty 50 Index, providing passive exposure to the top 50 Indian companies.
- IDBI Nifty Junior Index Fund: An open-ended scheme replicating/tracking the Nifty Next 50 Index, providing passive exposure to the 50 companies after the Nifty 50.
- IDBI Gold Exchange Traded Fund (ETF): An open-ended scheme that seeks to provide returns that closely correspond to the returns provided by the price of physical gold.
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