IDFC MF changes name of dynamic equity fund to balanced advantage
Premium- The name change has been done to better reflect the fund’s investment focus, and there are no changes to the investment objective, strategies or management of the fund
IDFC Mutual Fund on Thursday announced that it has changed the name of its IDFC Dynamic Equity Fund to IDFC Balanced Advantage Fund to maintain uniformity with the peer category.
According to the asset management company (AMC), the name change has been done to better reflect the fund’s investment focus, and there are no changes to the investment objective, strategies or management of the fund.
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1 min read . 03 May 2021“IDFC Balanced Advantage Fund will continue to run on a pre-defined model, which indicates the range of active equity allocation based on P/E levels, that helps the scheme invest more when equity valuations are low and invest in high quality debt and arbitrage opportunities when the equity valuations are high. This helps in taking advantage of the different market conditions," said Gaurab Parija, head–sales and marketing, IDFC AMC.
The fund has a pre-defined model with six different equity bands — a minimum of 30% to a maximum of 100%. Higher the price to equity (PE) band, lower will be the active equity allocation and vice versa.
The fund has the highest 90-100% equity allocation for less than 12 PE band and the minimum 30-40% equity allocation for higher 26 PE band.
Change of the bands happens once a month while changes within the band happen dynamically on a day-to-day basis. According to the fund house, remaining portion of the portfolio is invested in an actively managed debt instruments focusing on a short to moderate duration strategy.
Established in 2000, IDFC AMC is one of the top 10 asset managers with over ₹1.20 lakh crore as asset under management at the end of March, across 55 mutual fund schemes.
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