IDFC Mutual Fund is all set to launch a new fund comprising stocks from the transportation and logistics sector on Tuesday, October 4, 2022. An open-ended equity scheme, IDFC Transportation and Logistics Fund intends to benefit from the multi-year growth opportunity in the mobility services sector.  

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With an asset under management (AUM) of 120433 crore as on August 31, 2022, IDFC Mutual fund currently runs 42 schemes. 

"Rapid urbanization is accelerating growth in personal mobility requirements. Additionally, powerful enablers like a strong demand-led recovery cycle and margin improvement provides visibility for strong earnings growth for the transportation and logistics sector," said Vishal Kapoor, CEO, IDFC AMC, highlighting the rationale behind launching this fund. 

Growth in this sector is expected to be driven by rising aspirations, enhanced infrastructure, a surge in volumes and export-driven opportunities, he added.  

NFO open and close dates, how to invest 

The New Fund Offer opens on Tuesday, October 04, 2022, and closes on Tuesday, October 18, 2022. Investment can be made through licensed mutual fund distributors and online platforms as well as directly on the IDFC MF website https://idfcmf.com/. 

Subscription During NFO:  

Lumpsum purchase - Rs. 5000/- and in multiples of Re. 1/- thereafter. 

SIP: Rs.100/- and in multiples of Rs.1 thereafter 

Exit Load: If redeemed/switched out within 1 year from the date of allotment - 1% of applicable NAV; 

If redeemed/switched out after 1 year from the date of allotment – Nil 

Daylynn Pinto, Fund Manager for IDFC Transportation and Logistics Fund, said the Transportation and Logistics sector consists of 16 sub-sectors, providing a wide spectrum of investment opportunities and facilitating effective diversification of the portfolio.  

"NSE data as of August 2022 indicates that the Nifty Transportation and Logistics Index has outperformed the Nifty 500 Index in 8 out of 11 calendar years from 2012 to 2022 (YTD Aug’22), demonstrating the potential of this sector to provide relatively higher returns over the long term," he added.  

The IDFC Transportation and Logistics Fund has a bottom-up stock selection approach with investment across market cap segments, facilitating focus on the business specific aspects and aligning the execution with a medium to long-term view. The fund invests predominantly in companies that are part of the Transportation and Logistics sector with the flexibility to allocate up to 20% of its net assets to international businesses and companies of other sectors that have a compelling risk-reward opportunity.”