IDFC Low Duration Fund – Regular/Direct Plan – Growth
IDFC Low Duration Fund is a mutual fund offered by IDFC Asset Management Company Limited. The fund invests primarily in a portfolio of debt and money market instruments with a low duration, which means that the portfolio has a low sensitivity to interest rate changes. The Regular Plan and Direct Plan are different investment options offered by the fund. The Regular Plan is typically sold through intermediaries and may have a higher expense ratio than the Direct Plan, which is sold directly to investors. The “Growth” option refers to the type of returns that the fund aims to generate – capital appreciation rather than regular income.
Investment Objective IDFC Low Duration Fund
The IDFC Low Duration Fund aims to provide regular income and capital appreciation through investments in a diversified portfolio of debt and money market instruments with a low duration. The fund’s portfolio typically includes government securities, treasury bills, corporate bonds, commercial papers, and certificates of deposit. The fund is suitable for investors who are looking for a relatively low-risk investment option and are willing to accept a lower return compared to other debt funds.
Investment Options IDFC Low Duration Fund
The Regular Plan and Direct Plan are different investment options offered by the fund. The Regular Plan is typically sold through intermediaries such as financial advisors and distributors and may have a higher expense ratio than the Direct Plan, which is sold directly to investors. The Direct Plan generally has a lower expense ratio as it eliminates the intermediaries’ commission.
RETURNS (NAV as on 20th January, 2023)
| Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns | Category Avg | Rank within Category |
|---|---|---|---|---|---|---|
| 1 Week | 13-Jan-23 | 10010.10 | 0.10% | – | 0.10% | 13/24 |
| 1 Month | 20-Dec-22 | 10055.70 | 0.56% | – | 0.54% | 3/23 |
| 3 Month | 20-Oct-22 | 10177.00 | 1.77% | – | 1.01% | 3/24 |
| 6 Month | 20-Jul-22 | 10275.40 | 2.75% | – | 1.93% | 7/24 |
| YTD | 30-Dec-22 | 10036.50 | 0.36% | – | 0.36% | 5/23 |
| 1 Year | 20-Jan-22 | 10424.00 | 4.24% | 4.24% | 3.51% | 9/23 |
| 2 Year | 20-Jan-21 | 10808.00 | 8.08% | 3.96% | 3.82% | 10/23 |
| 3 Year | 20-Jan-20 | 11512.60 | 15.13% | 4.80% | 4.95% | 13/23 |
| 5 Year | 19-Jan-18 | 13379.10 | 33.79% | 5.99% | 5.14% | 9/23 |
| 10 Year | 18-Jan-13 | 20240.20 | 102.40% | 7.30% | 6.67% | 3/21 |
| Since Inception | 17-Jan-06 | 32435.40 | 224.35% | 7.16% | 6.87% | 13/24 |
Returns Calculator Detailed Returns Analysis
SIP RETURNS (NAV as on 20th January, 2023)
| Period Invested for | ₹1000 SIP Started on | Investments | Latest Value | Absolute Returns | Annualised Returns |
|---|---|---|---|---|---|
| 1 Year | 20-Jan-22 | 12000 | 12323.83 | 2.7 % | 5.01 % |
| 2 Year | 20-Jan-21 | 24000 | 25067.28 | 4.45 % | 4.23 % |
| 3 Year | 20-Jan-20 | 36000 | 38421.06 | 6.73 % | 4.26 % |
| 5 Year | 19-Jan-18 | 60000 | 68392.99 | 13.99 % | 5.17 % |
| 10 Year | 18-Jan-13 | 120000 | 167025.44 | 39.19 % | 6.43 % |
Returns
The “Growth” option refers to the type of returns that the fund aims to generate. Growth option generally aims for capital appreciation and not for regular income and the returns generated by this option are not guaranteed and will fluctuate with the performance of the fund’s portfolio. Investors in the growth option may not get regular income as dividends and may have to rely on the appreciation in NAV for returns.
Fund Manager and Management Team
IDFC Low Duration Fund is managed by the IDFC Asset Management Company Limited. The fund manager for this scheme is Mr. Rajeev Radhakrishnan. The management team of IDFC Asset Management Company Limited is responsible for managing the fund and making investment decisions. The team has a wealth of experience in the debt and money market segments, and they employ a thorough research-based approach to selecting investments for the fund.
Risk and Return
As a short-term debt fund, IDFC Low Duration Fund carries relatively lower risk compared to other debt funds. However, it’s important to note that all investments come with some level of risk and the value of the investment can go up or down depending on the performance of the portfolio. The returns generated by the fund are also not guaranteed and will fluctuate with the performance of the portfolio.
It’s also important to understand that past performance of a fund is not a guarantee of future performance and the NAV of the fund can fluctuate based on the performance of the portfolio. As an investor, you should have a clear understanding of your risk appetite and investment objectives before choosing to invest in the fund.
Expense Ratio
The expense ratio is the annual fee that the fund charges to cover its expenses. The expense ratio for the Regular Plan is generally higher than that of the Direct Plan as the Regular Plan incurs additional costs for distribution and commission. The expense ratio for the Direct Plan is generally lower as it eliminates the intermediaries’ commission. As an investor, it’s important to consider the expense ratio when comparing different investment options.
Conclusion
It’s always important to consult a financial advisor before investing in a mutual fund, and also to review the fund’s past performance, investment strategy, and expenses before making a decision. It’s also important to understand that past performance of a fund is not a guarantee of future performance and the NAV of the fund can fluctuate based on the performance of the portfolio.
FAQ
Q: What is the investment objective of IDFC Low Duration Fund?
A: The investment objective of IDFC Low Duration Fund is to provide regular income and capital appreciation through investments in a diversified portfolio of debt and money market instruments with a low duration.
Q: What are the investment options offered by IDFC Low Duration Fund?
A: IDFC Low Duration Fund offers two investment options: Regular Plan and Direct Plan. The Regular Plan is typically sold through intermediaries such as financial advisors and distributors, while the Direct Plan is sold directly to investors.
Q: What is the expense ratio for IDFC Low Duration Fund?
A: The expense ratio for the Regular Plan is generally higher than that of the Direct Plan as the Regular Plan incurs additional costs for distribution and commission. The expense ratio for the Direct Plan is generally lower as it eliminates the intermediaries’ commission.
Q: What is the risk associated with investing in IDFC Low Duration Fund?
A: As a short-term debt fund, IDFC Low Duration Fund carries relatively lower risk compared to other debt funds. However, it’s important to note that all investments come with some level of risk and the value of the investment can go up or down depending on the performance of the portfolio.
Q: Who manages IDFC Low Duration Fund?
A: IDFC Low Duration Fund is managed by the IDFC Asset Management Company Limited. The fund manager for this scheme is Mr. Rajeev Radhakrishnan.
Q: Is past performance of IDFC Low Duration Fund a guarantee of future performance?
A: No, past performance of a fund is not a guarantee of future performance. The NAV of the fund can fluctuate based on the performance of the portfolio. As an investor, it’s important to understand this and also to consult a financial advisor, review the fund’s past performance, investment strategy, and expenses before making a decision.
