February 7th, 2009 
Tushar Mathur
IDFC Mutual Fund has launched IDFC India GDP Growth Fund, an open-ended equity scheme. The investment objective of the scheme seeks to generate long-term capital appreciation by investing in equity and equity related instruments. The scheme aims to capture the growth in India’s Gross Domestic Product (GDP). The scheme would endeavour to represent the growth in GDP by capturing the growth in the constituents of the GDP. The scheme may also invest in debt and money market instruments.
The new fund offer period (NFO) is open for subscription from January 28, to February 26, 2009. The face value of new issue is Rs 10 per unit.
The scheme offers growth and dividend option. The dividend option shall have reinvestment facility. The minimum investment amount is Rs 5000 and in multiples Re 1 thereafter. The scheme will charge an entry load of 2.25% for the investment amount less than Rs 5 crore. The scheme will charge 1% exit load for redemption within 1 year from the date of allotment.
The scheme will invest 65-100% in equity and equity related instruments comprising of the companies representing the constituents of the GDP. It will invest up to 35% in debt and money market instruments. Investment in derivatives up to 50% of net asset.
Investments in securities lending will be up to 35% of the net assets of the scheme. Investment in foreign debt instruments shall be up to 35% of the net assets of the scheme. Investment in ADRs and GDRs issued by Companies in India, as permitted by SEBI regulation – upto 50% of the net asset of the scheme. The benchmark index for the scheme is BSE 500 index.
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