If you invest in mutual funds, then this news is very important for you. Because the country’s big fund house has changed the name of one of its schemes.
IDFC Mutual Fund has changed the name of one of its schemes. The fund house said on Thursday that their scheme IDFC Dynamic Equity Fund has been renamed to IDFC Balanced Advantage Fund. According to the Asset Management Company (AMC), the name has been changed to better reflect the investment of the fund. This does not mean that the fund has made any changes in its investment and strategy. It will continue as before.
IDFC Fund was established in the year 2000. IDFC AMC is among the top-10 asset managers in the country. He has an AUM of more than 1.20 lakh crores in 55 mutual fund schemes at the end of March.
AUM means Asset Under Management. AUM shows how big and successful the fund house is. Larger AUM in index funds means more liquidity.
What are dynamic equity funds
Most dynamic funds invest large amounts of debt during the boom in the market. In this way the risk is reduced.
Such schemes are good for new investors. For them too, they are friendly who cannot take much risk with investment. With these schemes, investors get experience of investing in equities with less risk.
Experts say that dynamic equity funds do not give very aggressive returns, that is, they get up to 10 per cent annual returns with less risk. Of these, the good thing is about stable returns in the long term.
But when the stock market reaches a record level, they turn to debt (bonds). In this way, their returns are less than pure equity funds at the time of market boom.
However, over the long term, most top dynamic equity funds have outpaced the Sensex. This means that their average return is good.
Know about IDFC Balanced Advantage Fund
If you look at the returns, this fund has not done very well this year. Since January, it has given a total return of 3 per cent. However, from 5 May 2020 to 5 May 2021, the fund has given a return of 29 per cent. Whereas, funds of this segment have performed very well.
Currently, the top 10 stocks in the fund’s portfolio include Infosys, ICICI Bank, Reliance Industries, TCS, Bharti Airtel, HDFC Bank, Divis Labs, Tech Mahindra, HUL. The performance of these stocks in the last one month is very simple.
