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IDFC Mutual Fund will rename and revise the categories and asset allocations of IDFC Equity Fund and IDFC Super Saver Income Fund - Short Term Plan, with effect from May 14, the fund house said in an addendum.
The revision comes in the wake of change in regulations by capital market regulator Securities and Exchange Board of India (SEBI) on October 6. The revised guidelines require fund houses to harmonise all existing and future schemes into five broad categories and 36 sub-categories for ease in investing.
Accordingly, the revised IDFC Equity Fund will be as follows:
| PARTICULARS | EXISTING FEATURES | REVISED FEATURES |
| Scheme Name | IDFC Equity Fund | IDFC Large Cap Fund |
| Category | An open-ended equity scheme | An open-ended equity scheme predominantly investing in large-cap stocks |
| Asset Allocation |
-- 65-100% in equities and equity-related instruments--0-35% in debt and money market instruments-- 0-35% in securitised debt instruments |
-- 80-100% in equity and equity related instruments of large-cap companies-- 0-20% in equity and equity related instruments of mid- and small-cap companies-- 0-20% in debt and money market instruments, including government securities, securitised debt, margin money, fixed deposit, of which up to 10% in units issued by real estate and infrastructure investment trusts |
The scheme can only engage up to 20 percent of its total assets in securities lending, as against the current 100 percent lending of equity securities.
The revision in IDFC Super Saver Income Fund - Short Term Plan will be as follows:
| PARTICULARS | EXISTING FEATURES | REVISED FEATURES |
| Scheme Name | IDFC Super Saver Income Fund - Short Term Plan | IDFC Bond Fund - Short Term Plan |
| Category | An open-ended debt scheme | An open-ended short-term debt scheme investing in instruments of Macaulay duration between 1-3 years |
| Asset Allocation |
-- 0-60% in debt instruments with maturity above one year-- 40-100% in debt instruments with maturity less than one year | -- 0-100% in debt securities, including government securities and securitised debt, and in money market instruments of which up to 10 percent in units issued by real estate and infrastructure investment trusts |
Come May 11, the fund house will also introduce quarterly and annual dividend options under the regular and direct plan of IDFC Super Saver Income Fund - Short Term Plan, along with its existing dividend option.
Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price.
Unit holders who do not agree with the changes can avail the exit option from Wednesday until May 11 without paying any exit load, the fund house said in its addendum. All other features of the schemes will remain unchanged.
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