IDBI Mutual Fund is a relatively new fund house in the mutual fund industry which was set up on 25th January 2010, under the provisions of Companies Act, 1956. The fund house has been sponsored by IDBI Bank and is managed by IDBI Asset Management Limited. The mission of IDBI Mutual Fund is to promote financial inclusion and assisting common man in making informed investment choices through investing in mutual funds, and bringing in the prosperity of capital markets.
IDBI Mutual Fund's mission statement marks the continuance of the legacy of its sponsor IDBI Bank, which has contributed significantly towards India's economic and industrial progress for over 40 years.
Apart from being one of India's largest banks, IDBI Bank is one of the key founding members of a few important financial institutions in India and has assisted in its development. The list includes market regulator SEBI, National Stock Exchange, National Securities Depository Limited, EXIM Bank, SIDBI, Credit Analysis & Research Ltd, Stock Holding Corporation of India and the Entrepreneurship Development Institute of India.
Over the years, IDBI Mutual Fund has launched different mutual fund schemes spread across equity and debt types fulfilling the investment requirement of many Indian investors. Some of its funds have even ranked top in CRISIL rating.
As on 30th Sep 2019, IDBI Mutual Fund has a total 22 mutual fund schemes under its umbrella spread across equity and debt instruments with total Asset Under Management (AUM) at Rs. 5,380.84 crore.
IDBI Mutual Fund offers four types of funds to its investors:
Secondly, IDBI Mutual Fund offers many investment-related free tools & calculators along with having a learning centre on its website to help investors make an informed investment choice.
The Learning Centre is a SEBI Investment Education Programme that offers investment knowledge through different online modes, including informative & educational videos, infographics, presentation and frequently asked questions (FAQ).
It helps to calculate your ideal monthly investment amount to achieve your financial goal and also determine the future value of your goal.
This calculator will help you to see how your small investments in mutual funds made at regular intervals will yield over a long period of time.
This tool helps you to figure out your risk profile and suggests the ideal investment option.
Wealth Guide is a well-curated set of questionnaire to understand your investment behavior and risk profile to recommend your ideal asset allocation that fulfills your financial objective and goal.
Based on your risk appetite, this tool will help you to optimize your risk-return expectation by investing in the right mix of investment options across several asset class.
IDBI Mutual Fund offers 22 mutual funds across equity, debt, hybrid and gold fund. Following are the investment objectives of different mutual fund schemes, their asset allocation and risk factor.
| Equity Fund | Investment Objective | Risk Profile |
|---|---|---|
| IDBI Healthcare Fund | To achieve long term capital appreciation by predominantly investing in equity and equity-related instruments of companies engaged in the Healthcare and Allied sectors. | High |
| IDBI Dividend Yield Fund | To provide long term capital appreciation and/or dividend distribution by investing predominantly in dividend yielding equity and equity related instruments. | Moderately High |
| IDBI Banking & Financial Services Fund | To provide investors maximum growth opportunities and to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of companies engaged in Banking and Financial Services Sector. | High |
| IDBI Long Term Value Fund | To generate long-term capital appreciation along with regular income by investing predominantly in equity and equity related instruments by following value investing strategy. | Moderately High |
| IDBI Focused 30 Equity Fund | To provide long term capital appreciation by investing in concentrated portfolio of large cap focused equity and equity related instruments of up to 30 companies and balance in debt and money market Instruments. | Moderately High |
| IDBI Small Cap Fund | To provide investors with the opportunities for long-term capital appreciation by investing predominantly in Equity and Equity related instruments of Small Cap companies. | Moderately High |
| IDBI Midcap Fund | To provide investors with the opportunities for long-term capital appreciation by investing predominantly in Equity and Equity related instruments of Midcap Companie | Moderately High |
| IDBI Diversified Equity Fund | To provide investors with the opportunities for long-term capital appreciation by investing in a diversified portfolio of Equity and Equity related Instruments across market capitalization. | Moderately High |
| IDBI Equity Advantage Fund | To invest predominantly in a diversified portfolio of equity and equity related instruments with the objective to provide investors with opportunities for capital appreciation and income along with the benefit of income-tax deduction (under section 80C of the Income-Tax Act, 1961) on their investments. Investments in this scheme would be subject to a statutory lock-in of three years from the date of allotment to be eligible for income-tax benefits under Section 80C. | Moderately High |
| IDBI India Top 100 Equity Fund | To provide investors with the opportunities for long-term capital appreciation by investing predominantly in Equity and Equity related Instruments of Large Cap companies. | Moderately High |
| IDBI Nifty Junior Index Fund | To invest only in and all the stocks comprising the Nifty Next 50 Index in the same weights of these stocks as in the Index with the objective to replicate the performance of the Total Returns Index of Nifty Next 50 Index. The scheme may also invest in derivatives instruments such as Futures and Options linked to stocks comprising the Index or linked to the Nifty Next 50 Index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the Nifty Next 50 Index (Total Returns Index) and the Scheme. | Moderately High |
| IDBI Nifty Index Fund | To invest only in and all the stocks comprising the Nifty 50 Index in the same weights of these stocks as in the Index with the objective to replicate the performance of the Total Returns Index of Nifty 50 Index. The scheme may also invest in derivatives instruments such as Futures and Options linked to stocks comprising the Index or linked to the Nifty 50 Index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the Nifty 50 Index (Total Returns Index) and the Scheme | Moderately High |
| Debt Funds | Investment Objective | Risk Profile |
|---|---|---|
| IDBI Credit Risk Fund | To generate regular income and opportunities for capital appreciation by investing predominantly in AA and below rated corporate bonds across maturity spectrum. | Moderate |
| IDBI GILT Fund | To provide regular income along with opportunities for capital appreciation through investments in a diversified basket of central government dated securities, state government securities and treasury bills. | Moderate |
| IDBI Dynamic Bond Fund | To generate income while maintaining liquidity through active management of a portfolio comprising of debt and money market instruments. | Moderate |
| IDBI Short Term Bond Fund | To provide investors with regular income by investing in debt and money market instruments, such that the Macaulay duration of the portfolio is maintained between 1 year to three years. | Moderately Low |
| IDBI Ultra Short Term Fund | To provide investors with regular income for their investment by investing in debt and money market instruments with relatively lower interest rate risk, such that the Macaulay duration of the portfolio is maintained between three months to six months. | Moderately Low |
| IDBI Liquid Fund | To provide investors with high level of liquidity along with regular income for their investment. The Scheme will endeavour to achieve this objective through an allocation of the investment corpus in a low risk portfolio of money market and debt instruments with maturity of up to 91 days. | Low |
| Hybrid Funds | Investment Objective | Risk Profile |
|---|---|---|
| IDBI Hybrid Equity Fund | To generate opportunities for capital appreciation along with income by investing in a diversified basket of equity and equity related instruments, debt and money market instruments. | Moderately High |
| IDBI Equity Savings Fund | To generate regular income by investing in Debt and money market instruments and using arbitrage and other derivative strategies. The Scheme also intends to generate long capital appreciation through unhedged exposure to equity and equity related instruments. | Moderately High |
| Gold Fund | Investment Objective | Risk Profile |
|---|---|---|
| IDBI Gold Exchange Traded Fund | 27.58 | Moderately High |
| IDBI Gold Fund | 9.87 | Moderately High |
Top IDBI Mutual Fund schemes in terms of highest AUM:
IDBI Equity Advantage Fund is ranked 5th in ELSS category by CRISIL.
IDBI Credit Risk Fund is ranked 4th in Credit Risk Fund category by CRISIL.
IDBI Liquid Fund is ranked 4th in Liquid Fund category by CRISIL.
IDBI Short Term Bond Fund is ranked 4th in the Short Duration Fund category by CRISIL.
The overall performance of IDBI Mutual Fund is mixed type with a few top-performing funds in equity and debt segment.
The Hybrid Funds and Gold Funds continue to underperform in the category and benchmark with a large variation in returns.
Following are the list of a few top -performing equities and debt funds:
Click here to know about Performance of IDBI Mutual Funds
Following is the list of top holdings of various IDBI equity Mutual Fund schemes:
Click here to know about top holdings of IDBI Mutual Funds
Investing in IDBI Mutual Fund has the following advantages:
IDBI Mutual Fund's sponsor IDBI Bank is a trusted player in the banking and financial services sector. Its contribution to India's economic and industrial progress over the last 40 years has been remarkable. This helps to impart a sense of security and confidence among all stakeholders.
The mutual fund business is tightly regulated by SEBI that safeguard the investor's interest.
Investing in different schemes of IDBI Mutual Fund is very easy and convenient. Plus, redemption requests on open-ended funds are processed within three working days at the current NAV.
Investors are provided with benefits like a Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), and Systematic Withdrawal Plan (SWP). Secondly, with the daily declaration of NAV and regular update of portfolio changes there’s transparency throughout the process.
All funds are managed by proficient fund managers with significant experience in the fund management and research space.
Investors can enjoy seamless customer services in IDBI Bank branches present across India, and take advantage of the professional services.
IDBI Mutual Fund can be purchased either from Relationship Manager present at the IDBI Bank branch or IDBI Mutual Fund Office or from the official website of IDBI Mutual Fund (www.idbimutual.co.in).
List of document required to invest in IDBI Mutual Fund:
