IDFC Mutual Fund launches US Equity Fund of Fund


IDFC Mutual Fund has announced the launch of its first international fund- IDFC US Equity Fund of Fund, an open-ended fund of fund scheme investing in units of overseas mutual fund schemes. The fund will focus on units of schemes investing in US Equity securities like J.P Morgan US Growth Fund. The New Fund Offer will open for subscription on July 29, 2021 and close on August 12.

According to the press release, investors of IDFC US Equity Fund of Fund can derive value proposition from the growth-oriented underlying fund as it provides a broad exposure to the US equity markets and has been actively managed by a team of fund managers with deep understanding of the market and adopt a bottom-up approach to identify ESG compliant companies with a sustainable competitive advantage and strong price momentum. The underlying fund portfolio consists of 60-90 fundamentally strong stocks with 40% of the revenue of the underlying stocks contributed by countries outside the US.

“Including an international fund helps bring a geographical diversification to an investor’s portfolio. However, before selecting an international fund, an investor should check if the fund is complementary. IDFC US Equity Fund of Fund provides complementary addition to the investor’s portfolio as it has a low correlation with Indian equities, additionally, it offers investors the powerful opportunity of investing in US equities and participation in a significant global revenue pool,” said Vishal Kapoor, CEO, IDFC Asset Management Company Limited.

He added that, “The US economy started showing signs of economic revival, supported by the aggressive vaccination rollout, flattening curve of the Covid-19 cases, progression towards herd immunity, reopening of establishments, and fiscal stimulus by the government. These key factors have restored the confidence of investors. The US market is at the forefront of new-age innovations across different sectors and investors can reap the benefits of those unique businesses. Investors can add currency exposure to their portfolio to meet future expenses and participate in innovative themes, which are expected to advance the US economy further. Pent-up demand aided by low debt levels and high net worth is expected to drive GDP growth in the second half of 2021, which is expected to range between 6-7% for CY21, the highest in almost 40 years.”

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