Thursday, March 19, 2009

IDFC TAX FUND - AVOID

IDFC TAX FUND - AVOID

IDFC AMC which manages assets worth Rs 8,686 crore across 78 schemes (as on 30 November) has launched IDFC Tax Advantage (ELSS) Fund an open-ended equity linked saving scheme. This fund will invest in equity and equity related instruments
The IDFC Tax Advantage (ELSS) Fund with a minimum subscription of Rs. 500, will not only help investors avail of a tax benefit, but also seek to generate long term capital growth from a diversified portfolio of predominantly equity and equity related securities. The scheme will invest in well-managed growth companies that are available at a reasonable value and offer a high return growth potential.
Mr. Naval Bir Kumar, Managing Director, IDFC Mutual Fund says “We are happy to offer The IDFC Tax Advantage (ELSS) Fund to investors who are looking for a tax break as well as an easy and affordable way to take advantage of the growth potential of equity funds.” He continues, "The scheme will invest in well managed growth companies that are available at a reasonable value and offer a high return growth potential to investors,"
Idea distiller: IDFC does not have a tax plan as yet. As the last three months of a financial year see a lot of people rushing to invest in tax-saving schemes, it is an ideal time for IDFC to push an ELSS.
MY TAKE ON IDFC TAX FUND:
IDFC's equity funds have a rather brief history. Invest in this fund only if you want to go in for a low-cost NFO rather than an existing scheme with a higher NAV.
It is better to invest in a fund that has earned enough to reach a high NAV, some of them with compelling track record and a well defined portfolio characteristics and thus ensures dividends for the period that you are locked in, and has a fund manager who has excelled in managing assets across all cycles of the market.
In a nutshell, AVOID


Also visit http://equityadvise.blogspot.com for an indepth Equity Analysis

2 comments:

  1. Sir,

    As per my view any one should go for their portfolio allocation.

    If large cap than you can simly put in to Franklin Tax Index.....

    If you compare 2008 full year equity topeers...IDFC Premier was on the top of the chart for the full year.....

    I think IDFC people are very much conservative....and made for that category of people...

    ReplyDelete
  2. Sure, IDFC Premier was the Top Performer for the year 2008, but you should note that IDFC AMC has not seen a Bear Market yet, so their performance in a Bear Market has not been tested, unlike AMCs like HDFC, Franklin, etc.
    Until they come out with better than peer performance even in Bear Market, it is better to avoid them.
    Srikanth

    ReplyDelete

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