IDFC Savings Scheme Series I details

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investment opportunity in IDFC Savings Scheme Series I which is a Close ended debt scheme with a tenor of 36 months. The scheme endeavors to generate returns by investing in high quality fixed income securities with a maturity profile matching the maturity of the scheme and generate capital appreciation by investing in equity and equity related instruments.

IDFC Savings Scheme will initially deploy at least 75% of the funds collected during the New Fund Offer in high quality debt securities with an intention to generate income. The scheme will invest in a portfolio predominantly of fixed income securities that are generally maturing in line with the duration of the scheme. The scheme shall follow a predominantly passive investment strategy for the fixed income component of the Scheme. The fund will seek to generate capital appreciation by investing in equities. The equity allocation will be benchmarked to Nifty Index and will be invested in either high quality large cap companies or in equity mutual funds offering such portfolios. Depending on overall portfolio considerations and depending on market conditions, the fund manager may also have allocations to equity derivatives. The derivative portfolio will comprise of futures and options on the Nifty Index and will be actively managed by the fund manager within the overall asset allocation of the fund. The allocation to equity derivatives along with cash equity and equity mutual funds will be within the overall equity allocation as per the asset allocation of the scheme.

Scheme Features:

Minimum Investment amount: Rs. 5000 / - 

NFO Closing: 29^th Oct, 2010

Maturity: 3 years, maturity date-7th Nov 2013

Liquidity: Close Ended debt scheme listed on NSE.

The debt portfolio will be allocated to good quality AAA and AA+ rated entities

The equity allocation will be managed passively and will be benchmarked against Nifty

Current 3 year AAA yields (~8.25%) and the expected equity allocation is 25%

Benchmark: CRISIL MIP Blended Index

Scheme will allot units before 8th Nov 2010, investors will get benefit of 3 indexations

The fund is suitable for all those conservative investors who are looking for additional returns over and above current fixed income options available without taking risk on capital.