IDFC Banking & PSU Debt Fund – Regular/Direct Plan – Growth
About
IDFC Banking & PSU Debt Fund is a debt fund offered by IDFC Mutual Fund. The fund primarily invests in fixed income securities issued by banks and public sector undertakings (PSUs) in India. The direct plan and regular plan refer to the way in which the fund is purchased and the associated expenses. The direct plan has lower expenses, as it is purchased directly from the fund house, while the regular plan has higher expenses as it is purchased through a financial intermediary such as a broker or a financial advisor.
The IDFC Banking & PSU Debt Fund is a medium-term debt fund that aims to provide regular income and capital appreciation by investing primarily in debt and money market instruments issued by banks and public sector undertakings (PSUs) in India. The fund may also invest in debt and money market instruments issued by other corporates and financial institutions. The fund’s portfolio is diversified across different sectors, maturities, and credit ratings to manage risk.
The direct plan of the IDFC Banking & PSU Debt Fund is designed for investors who prefer to invest directly with the fund house and do not require the services of a financial advisor. The direct plan has lower expense ratios compared to the regular plan, which can result in higher returns for the investor over the long term.
The regular plan of the IDFC Banking & PSU Debt Fund is designed for investors who prefer to invest through a financial intermediary such as a broker or a financial advisor. The regular plan has higher expense ratios than the direct plan due to the additional costs associated with using the services of an intermediary.
It’s worth noting that both plans have similar investment objective and invest in the same portfolio, and the only difference between the two is the cost structure. An investor can choose which plan to invest in based on their preference for self-servicing or professional servicing and their cost tolerance.
RETURNS (NAV as on 19th January, 2023)
| Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns | Category Avg | Rank within Category |
|---|---|---|---|---|---|---|
| 1 Week | 12-Jan-23 | 10011.20 | 0.11% | – | 0.14% | 20/23 |
| 1 Month | 19-Dec-22 | 10055.80 | 0.56% | – | 0.52% | 7/23 |
| 3 Month | 19-Oct-22 | 10165.40 | 1.65% | – | 1.90% | 22/23 |
| 6 Month | 19-Jul-22 | 10279.50 | 2.79% | – | 2.98% | 16/22 |
| YTD | 30-Dec-22 | 10033.60 | 0.34% | – | 0.39% | 22/23 |
| 1 Year | 19-Jan-22 | 10408.20 | 4.08% | 4.08% | 4.11% | 8/22 |
| 2 Year | 19-Jan-21 | 10858.80 | 8.59% | 4.21% | 4.13% | 10/21 |
| 3 Year | 17-Jan-20 | 11988.20 | 19.88% | 6.21% | 5.98% | 8/18 |
| 5 Year | 19-Jan-18 | 14417.50 | 44.17% | 7.59% | 7.02% | 2/17 |
| Since Inception | 07-Mar-13 | 21055.90 | 110.56% | 7.83% | 6.82% | 11/23 |
Returns Calculator Detailed Returns Analysis
SIP RETURNS (NAV as on 19th January, 2023)
| Period Invested for | ₹1000 SIP Started on | Investments | Latest Value | Absolute Returns | Annualised Returns |
|---|---|---|---|---|---|
| 1 Year | 19-Jan-22 | 12000 | 12317.41 | 2.65 % | 4.91 % |
| 2 Year | 19-Jan-21 | 24000 | 25078.65 | 4.49 % | 4.28 % |
| 3 Year | 17-Jan-20 | 36000 | 38710.03 | 7.53 % | 4.76 % |
| 5 Year | 19-Jan-18 | 60000 | 70774.9 | 17.96 % | 6.53 % |
Investment Objective IDFC Banking & PSU Debt Fund
The IDFC Banking & PSU Debt Fund aims to provide regular income and capital appreciation by investing primarily in debt and money market instruments issued by banks and public sector undertakings (PSUs) in India. The fund may also invest in debt and money market instruments issued by other corporates and financial institutions. The fund’s portfolio is diversified across different sectors, maturities, and credit ratings to manage risk.
Direct Plan IDFC Banking & PSU Debt Fund
The direct plan of the IDFC Banking & PSU Debt Fund is designed for investors who prefer to invest directly with the fund house and do not require the services of a financial advisor. The direct plan has lower expense ratios compared to the regular plan, which can result in higher returns for the investor over the long term.
Regular Plan IDFC Banking & PSU Debt Fund
The regular plan of the IDFC Banking & PSU Debt Fund is designed for investors who prefer to invest through a financial intermediary such as a broker or a financial advisor. The regular plan has higher expense ratios than the direct plan due to the additional costs associated with using the services of an intermediary.
It’s worth noting that both plans have similar investment objective and invest in the same portfolio, and the only difference between the two is the cost structure. An investor can choose which plan to invest in based on their preference for self-servicing or professional servicing and their cost tolerance. Additionally, it’s important to understand that the expense ratios are not the only factor to consider when choosing between direct and regular plans, and the investor should also consider other factors such as their investment horizon, risk tolerance and financial goals.
Portfolio Composition IDFC Banking & PSU Debt Fund
The IDFC Banking & PSU Debt Fund invests primarily in debt and money market instruments issued by banks and public sector undertakings (PSUs) in India. These instruments include government securities, treasury bills, commercial papers, certificates of deposit, and other fixed income securities. The fund may also invest in debt and money market instruments issued by other corporates and financial institutions. The fund’s portfolio is diversified across different sectors, maturities, and credit ratings to manage risk. The fund aims to maintain an average maturity of its portfolio between 3-4 years.
Credit Risk
The IDFC Banking & PSU Debt Fund is exposed to credit risk, which is the risk that the issuer of a debt instrument will default on its obligation to repay the principal and interest on the instrument. To manage credit risk, the fund invests in debt and money market instruments issued by banks and public sector undertakings (PSUs) that have a relatively high credit rating. The fund also diversifies its portfolio across different sectors, maturities, and credit ratings.
Taxation
The interest income earned from the IDFC Banking & PSU Debt Fund is taxed at the marginal rate of the investor. Long-term capital gains (gains on investments held for more than three years) are taxed at 20% after indexation, while short-term capital gains (gains on investments held for less than three years) are taxed at the marginal rate of the investor.
It’s worth noting that tax laws may change from time to time and it’s always recommended to consult a tax advisor before making any investment decision.
In summary, IDFC Banking & PSU Debt Fund is a medium-term debt fund that aims to provide regular income and capital appreciation by investing primarily in debt and money market instruments issued by banks and public sector undertakings (PSUs) in India. The fund’s portfolio is diversified across different sectors, maturities, and credit ratings to manage risk. The direct plan has lower expenses than the regular plan, and investors can choose which plan to invest in based on their preference for self-servicing or professional servicing and their cost tolerance.
Performance
The performance of the IDFC Banking & PSU Debt Fund can be measured by its net asset value (NAV) and returns. The NAV is the per-unit value of the fund’s assets and is calculated on a daily basis. The returns are the percentage change in the NAV over a specific period of time. The fund’s returns can be compared to the returns of a benchmark index such as the CRISIL Composite Bond Fund Index or the NIFTY PSU Bond Index, which tracks the performance of debt securities issued by banks and public sector undertakings (PSUs) in India.
It’s important to note that past performance is not necessarily indicative of future performance, and the fund’s returns may be affected by various factors such as interest rates, credit risk, inflation, and market conditions.
Suitability IDFC Banking & PSU Debt Fund
The IDFC Banking & PSU Debt Fund is suitable for investors who:
- Are looking for regular income and capital appreciation
- Have a medium-term investment horizon of 3-4 years
- Are comfortable with the credit risk associated with debt and money market instruments
- Are willing to bear the expenses associated with the fund
It’s worth noting that the suitability of a fund depends on the individual investor’s financial situation, investment objectives, and risk tolerance. An investor should consult a financial advisor before making any investment decisions.
Conclusion
The IDFC Banking & PSU Debt Fund is a medium-term debt fund that invests primarily in debt and money market instruments issued by banks and public sector undertakings (PSUs) in India. The fund aims to provide regular income and capital appreciation while managing risk through diversification. The direct plan has lower expenses than the regular plan and investors can choose which plan to invest in based on their preference for self-servicing or professional servicing and their cost tolerance. As always, it’s important to consult a financial advisor and understand the fund’s features, risks, and suitability before investing.
FAQ
Q: What is IDFC Banking & PSU Debt Fund?
A: IDFC Banking & PSU Debt Fund is a debt mutual fund offered by IDFC Asset Management Company Limited. The fund invests primarily in fixed income securities issued by banks and public sector undertakings (PSUs) in India. The objective of the fund is to generate regular income for investors through investments in a diversified portfolio of debt securities issued by banks and PSUs.
Q: What is the investment objective of IDFC Banking & PSU Debt Fund?
A: The investment objective of IDFC Banking & PSU Debt Fund is to generate regular income for investors through investments in a diversified portfolio of debt securities issued by banks and PSUs.
Q: What is the minimum investment amount for IDFC Banking & PSU Debt Fund?
A: The minimum investment amount for IDFC Banking & PSU Debt Fund is Rs. 5,000.
Q: What is the lock-in period for IDFC Banking & PSU Debt Fund?
A: There is no lock-in period for IDFC Banking & PSU Debt Fund.
Q: What is the expense ratio for IDFC Banking & PSU Debt Fund?
A: The expense ratio for IDFC Banking & PSU Debt Fund is 0.4% (as of 2021)
Q: How is the performance of IDFC Banking & PSU Debt Fund?
A: The performance of IDFC Banking & PSU Debt Fund can vary over time, and it’s important to check the latest NAV (Net Asset Value) and its historical performance before investing. It’s also important to consider the fund’s risk profile and the investor’s risk tolerance and investment goals.
Q: Who are the fund managers for IDFC Banking & PSU Debt Fund?
A: The fund managers for IDFC Banking & PSU Debt Fund are Anurag Mittal and Vikas Babu.
