IDFC announces launch of US equity Fund of Funds, NFO begins on July 29: Check details here
The minimum application in IDFC NFO is Rs. 5,000 with a minimum systematic investment plan (SIP)starting from Rs 1,000.
July 26, 2021 / 11:12 AM IST
The minimum application during IDFC NFO is Rs. 5,000 with a minimum systematic investment plan (SIP)starting from Rs 1,000.
IDFC Mutual Fund is preparing to launch a fund of funds (FoF) investing in US stocks. JP Morgan US Growth Fund will be the underlying fund. The new fund offer (NFO) period will begin from July 29 and go until August 12. However, it is an open-ended fund and will therefore be open for subscription beyond that time period as well.
The minimum application during NFO is Rs. 5,000 with a minimum systematic investment plan (SIP)starting from Rs 1,000. There is an exit load of 1 percent, in case of redemption under one year, while the minimum expense ratio is 2.25 percent.
JP Morgan US Growth Fund has a 60-90 stock portfolio, Large-cap focused with some mid-cap exposure with $1.8 billion in assets as on June 2021. The fund has a global exposure and 40 percent of the revenue of the underlying stocks contributed by countries outside of the US. The fund performance has surpassed the benchmark from 2014 till now except in one year.
JP Morgan US Growth Fund is slightly underweight for sectors including Technology, Healthcare, Consumer Discretionary, Telecom, Real estate and Energy. It is overweight in sectors including financials and industrials.
However, the fund’s top 10 holdings include Alphabet, Apple, Microsoft, Facebook and Amazon among others.
The product is suitable for investors who are seeking to create wealth over a long period and for the ones who are looking to diversify returns through investing in a fund that will mainly invest in the overseas fund, IDFC Mutual Fund says.