IDFC Asset Management Company Limited (IDFC AMC) announced the removal of the restriction of Rs 2 lakh per transaction in IDFC Focused Equity Fund, effective from May 17, 2019. The IDFC Focused Equity Fund is an open-ended equity scheme investing in maximum 30 stocks with the flexibility to invest across sectors and across the market cap. 

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Highlighting why investors should choose to invest in IDFC Focused Equity Fund, Vishal Kapoor, CEO, IDFC AMC, said, “Given the sharp correction witnessed in the broad market, coupled with future growth expectations, we believe that the valuation in this space has become reasonable. In addition, the fund flows have moderated as well, reducing the deployment risk and impact cost. Therefore, it provides new as well as existing investors an opportunity to allocate to this focused strategy.” 

Adding further, Sumit Agrawal, Fund Manager – IDFC Focused Equity Fund, said, “The fund has a concentrated multi-cap portfolio with a maximum of 30 stocks by design. It has the flexibility to invest across market cap and sectors. The portfolio comprises of a mix of core and tactical ideas with a focus on growth-oriented companies. Given a concentrated offering, IDFC Focused Equity Fund could be a key choice for investors who prefer allocation driven portfolio as well as have the relatively higher temperament for market volatility.”

Back in 2017, the fund witnessed large flows within a short period; hence, to moderate the flows and maintain the investment style, IDFC AMC had decided to put in a restriction of Rs. 2 lakhs per transaction. Post re-categorisation of funds late last year, given the well-defined market cap buckets we see ample opportunities in the mid & small cap space as well as the large-cap space.