IDFC Mutual Fund collects over Rs 240 cr through equity NFO

New Delhi: IDFC Mutual Fund has garnered over Rs 240 crore through its new fund offer despite sluggish stock markets.

"Equity Opportunity Series 1 saw good response. We have collected over Rs 240 crore. The new fund offer opened on 9 April and closed on 10 April," said an IDFC Mutual Fund spokesperson.[caption id="attachment_695518" align="alignleft" width="380"]

More money. Andrew Middleton/Flickr[/caption]

This is one of the biggest amounts raised by a close ended scheme in recent times, the spokesperson added.

According to industry estimates, there over 25 close-ended schemes that focus on equity assets.

To be benchmarked against BSE-500 index, Equity Opportunity Series 1 fund will be managed by Kenneth Andrade.

Head of Investments at IDFC Asset Management Company, Andrade said the fund will have a diversified portfolio. The portfolio in the initial stages will focus on small companies by market capitalisation, he added.

The unit capital of closed-ended funds is fixed and sells a specific number of units. Unlike in open-ended funds, investors cannot buy the units of a closed-ended fund after its NFO period is over.

IDFC Asset Management Company Ltd was established in 2000 and is already one of the largest mutual fund houses in India.

PTI