IDFC AMC launches Balanced Fund

IDFC AMC today launched Balanced Fund, which restricts equity exposure to 60 per cent while allocating the balance to fixed income instruments.

The new fund offer will open on December 12 and close on December 26 and will reopen for continuous sale and repurchase from January 2.

The company, with assets under management of around Rs 58,500 crore (as on November 30), also has plans to launch a couple of more products by the fiscal-end, a top company official said.

The products to be launched by the fund house may be from any category other than the balanced fund one.

"We at IDFC AMC are looking at a couple of products to launch by the fiscal-end and the proposed products may be from any category other than balanced fund one," IDFC AMC chief executive Vishal Kapoor said while announcing the launch of the Balanced Fund here.

Talking about the Balanced Fund, he said the 60/40 allocation is well-accepted as an optimal asset mix for a balanced fund. It will be attractive for investors who do not want to risk reading market direction, especially given current market volatility.

The minimum application amount for the Balanced Fund is Rs 5,000, with the SIP option starting at Rs 1,000. The fund offers a direct and regular plan, both with growth and dividend options.

An exit load of one per cent is applicable if redeemed/switched out within 12 months from the date of allotment. As another unique feature, the fund offers nil exit-load for redemption up to 10 per cent of the investment amount.