Infrastructure Development Finance Company (IDFC) was incorporated in the year 1997. It is a leading Indian infrastructure finance company. IDFC offers advisory and finance services in the field of alternative asset and asset management (infrastructure, private equity, and real estate), and mutual fund, corporate investment banking and projects of infrastructure.
IDFC Mutual Fund:
IDFC Asset Management Company Ltd (IDFC AMC) sponsors the IDFC Mutual Fund. It was acquired in the year 2008. IDFC AMC administers products for institutional investors as well as retail investors. IDFC AMC aims to ensure growth of assets by various measures, including private and corporate savings into debt and equity markets.
Types of IDFC Mutual Funds:
IDFC offers three different types of Mutual funds. These are as under:
- Equity Funds
- Debt Funds
- Hybrid Funds
Equity funds are an ideal form of long-term investments. They involve fairly larger investments in stock instruments. And, typically deliver higher returns with the involvement of an average to a higher risk.
Investments are made in the form of government securities, bonds, commercial papers, bonds, deposit certificates, and debentures among others under the debt or income funds. These funds offer a relatively steady income to the investors, reducing the risk factor.
You have the option to invest in both fixed and equity income based securities called hybrid funds. These funds typically trim down the risk and provide fixed returns.
Why choose IDFC Mutual Funds?
- It is said that tax monster often eats a sizeable portion of your income. You can accumulate your money in National Savings Certificate (NSC) or Public Provident Fund (PPF) and ask for tax splits; it would give you low to moderate returns though. Small investors do make sure they invest in financial instruments that not only assist in saving taxes but also offer great returns such as Equity-Linked Savings Schemes (ELSS).
- Investors can avail tax exemption of up to Rs. 1, 50,000 with the help of IDFC tax advantage. Moreover, it also offers fixed returns. Investing in ELSS can get you tax exemption under the section 80C of the Indian Income Tax Act.
- A relatively easier, online transaction process is offered by IDFC that helps the investors to stalk, redeem, or switch their investments without getting on their nerves.
- The risk owing to fund diversification is reduced by mutual funds. Therefore, Investors can put in large, proficiently managed investment portfolios. The amazing team of portfolio managers assist investors in keeping away from errors generally made by novice or newbie investors.
- In comparison to individual stock, price fluctuations of mutual funds are more conventional and predictable.
- Yet another factor that benefits investors is the fact that performance of a fund is fully disclosed by IDFC Mutual Funds.