Mutual Funds

IDFC Low Duration Fund

IDFC Low Duration Fund Summary

Launched on 17th January 2006, is the open ended scheme that seeks to offer an investment avenue for short term savings by looking to generate returns commensurate with a low risk strategy from a portfolio that is invested in debt and money market securities such that the Macaulay duration of the portfolio is between 6 months and 12 months.

Portfolio Diversification (as on 30th June, 2020)

Assets Allocation
Debt93.39%
Net Cash and Cash Equivalent6.61%
Security Type% Weight
Corporate Bonds40.19%
Government Bond18.10%
Commercial Paper15.13%
Certificate of Deposit12.85%
Zero Coupon Bond2.99%
Treasury Bill2.17%
 State Government Bond1.95%
Rating Allocation
AAA Equivalent100.00%

Top 10 Holdings (as on 30th June, 2020)

HDFC11.15%
REC9.41%
National Bank for Agriculture and Rural development4.88%
LIC Housing Finance 4.22%
Larsen & Toubro Limited3.77%
Reliance Industries Limited2.49%
Power Finance Corporation Limited2.39%
NHPC0.55%
Bajaj Finance0.45%
HDB Financial Services0.36%
Top-10-holdings-of-IDFC-low-duration

IDFC Low Duration Mutual Fund Performance

Performance (as on 30th June, 2020)

 Period Fund Return Benchmark Return
 1 Y 8.63% 8.03%
 3 Y 7.72% 7.58%
 5 Y 7.99% 7.74%
 Since Inception 7.72% 8.36%

Scheme Strategy

  • The Scheme proposes to invest in a diversified set of fixed income securities and money market instruments with the aim of generating returns commensurate with a low risk strategy.
  • The aim of the Investment Manager will be to allocate the assets of the Scheme amongst various fixed income instruments (debt / money market) across maturities and ratings with the objective of optimizing returns.
  • The actual percentage of investment in various fixed income instruments from time to time will be decided based on the prevailing macro-economic environment (including interest rates and inflation), market conditions, general liquidity, and fund manager views.

Fund Management

The IDFC Low Duration Mutual Fund has been managed by Mr. Anurag Mittal since November 9, 2015. He has done B.Com. (Hons), CA and M.Sc. in Accounting and Finance from London School of Economics & Political Science. Prior to joining IDFC AMC, he worked with HDFC AMC (Sept. 2012 – Oct. 2015), Axis AMC (July 2009 – Sept. 2012), ICICI Prudential Life Insurance Company Ltd. as Credit Research Analyst (2008-2009) and with Bank of America in Corporate Banking (2006-2008).

Important Measures (As on 30th June, 2020)

ComponentValue
Standard deviation0.96%
Yield to Maturity4.12%
Modified Duration338 Days
Average Maturity368 Days

Benchmark Index: NIFTY Low Duration Debt TRI

Net AUM: ₹ 4,575.41 crores

Expense Ratio: Regular plan- 0.50% Direct plan- 0.28%

Entry Load: N/A

Exit Load: N/A

NAV (in Rs) *As per fund fact sheet 30th June, 2020

Direct plan29.66
Regular plan29.31

Investment Risk: Moderately low

Minimum investment Amount: ₹ 100

Minimum SIP Amount: ₹ 100

Scheme suitable only if you are an investor-

  1. Who seeks to generate short term optimal returns with relative stability and high liquidity.
  2. Whose investment preference is in debt and money market instruments such that the Macaulay duration of the portfolio is between 6-12 months.

 Tarrakki’s View

Investors seeking to invest up to 15 months can invest in IDFC Low Duration Fund. This fund invests in the debt market, which consists of very low risk securities and government securities. This fund has outperformed its category average since inception and is a great alternative to a bank fixed deposit.

About IDFCMF

Established in 2000,promoted by IDFC Ltd, a widely held publicly listed company originally set up by the Government of India as India’s premier infrastructure finance company. IDFC AMC is today one of India’s Top 10 asset managers by AUM, with a seasoned investment team and deep, on-the-ground presence across over 46 cities, and serving clients across over 280 towns in India

Address: IDFC AMC Ltd, One IndiaBulls Centre, 6th floor, Jupiter Mills Compound,841, Senapati Bapat Marg.Elphinstone Road, Mumbai: 400 013

Email ID: investormf@idfc.com

Phone No: 1-800-2666688/1-800-30066688

Website: https://idfcmf.com

Tarrakki list of top 10 funds to invest.

1. UTI Nifty Index Fund
2. Mirae Asset Tax Saver Fund
3. Axis Focused 25 Fund
4. Nippon India Liquid Fund
5. Mirae Asset Emerging Blue Chip Fund
6. Franklin India Ultra Short Bond Fund
7. Axis Mid-Cap Fund
8. IDFC Low Duration Fund
9. Coming Soon
10. Coming Soon

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